Sell my car online

Edmunds has an in-depth 10-step guide to selling your current car, but this article condenses the process into five simple steps that can help you turn your used car into cash in the shortest time possible. You can also print out this article and use it as a checklist to keep you on track.

1. Research and price your vehicle

Picking the right asking price can mean the difference between getting multiple calls right off the bat and having your phone not ring at all. To come up with an effective asking price, you'll first need to find out what the car is worth and how much other people are asking for similar cars. Appraise your vehicle on Edmunds and pay attention to the "private party" price. This figure is adjusted for a number of factors including mileage, condition, options, and the region in which the vehicle is being sold.

Next, search for similar vehicles on Edmunds, dealership websites or online classified sites. This research will give you a better idea of the market value for your particular model, and help determine whether the number you had in your head is in the ballpark. With this knowledge in hand, use the same technique you see at dealerships to price your vehicle competitively. In other words, if you're thinking of a $20,000 asking price, list the car at $19,900. Finally, be sure to leave a little wiggle room when setting the price. Ask for more than what you actually want to get for the car and keep in mind that people tend to negotiate in big chunks ($500-$1,000) rather than small increments ($100-$200). Set your car value accordingly.

A fast and hassle-free alternative would be to get an offer through Edmunds. All you need to do is enter your vehicle details to get an instant, redeemable and no-obligation cash offer. It's good for seven days and can be redeemed at any CarMax location. You can use this offer as a baseline for your asking price. Or, if you're comfortable with the offer, you can accept it and skip the rest of the steps.

2. Advertise your vehicle

Paid listings such as those on Autotrader or CarGurus are effective, but these sites charge a fee to list your vehicle. You can save a few bucks by advertising for free on Craigslist, Facebook Marketplace or eBay classifieds.

You should consider other ways of advertising, such as posting a "For Sale" sign in the car's window. This tried-and-true technique can yield results. It's also to use social media to let your friends know you're selling your vehicle.

When you post your car online, make sure you upload plenty of photos of the vehicle from all angles. As you write the description, make sure to mention if the vehicle has any scratches, dents or mechanical issues. Follow the steps in this article if you need help with the photos. You can also use a few key phrases to communicate how eager you are to sell the car. "OBO" ("or best offer") indicates that you are willing to entertain offers below the stated price. "Asking price" communicates the feeling that you will negotiate. "Firm" is less common, but it indicates that you aren't in a hurry to sell the car — you are most interested in getting your price.

You can also upload a video of the car to YouTube so potential buyers can do a virtual walk-around of the car. Include a link in your Craigslist or eBay listing (Autotrader unfortunately doesn't permit links).

Another alternative is online peer-to-peer car selling and buying through companies such as Carvana, Vroom, Tred and Zipflip. Each operates a little differently, so check the sites for details of their policies and services for sellers and buyers.

3. Show your car

If you've done all the previous steps, you should receive a number of calls and texts about your vehicle. Now someone wants to see it in person. Bear in mind that when you sell your car, people will not only be evaluating the car but also the person who owns it. Buyers will feel more comfortable if they know you took good care of the car and answer their questions openly. Make sure the car has been washed and that you've removed all your belongings from the inside. It is also a good idea to have your maintenance records ready to show interested parties.

Potential buyers will want to test-drive the car. Meet in a public place rather than at your home. Follow the safety tips from Craigslist and Facebook Marketplace to avoid common scams. These safety tips are also good advice for making a sale from any online classified site. Ride along with the buyer so you can answer questions. Some buyers will want to take the car to a mechanic to have it inspected. If you have a report from your mechanic, this might put their doubts to rest. But if they still want to take the car to their mechanic, this is a reasonable request.

4. Negotiate your best price

It's not uncommon for people to ask for your "best price" or try to negotiate before they've seen the car in person. If you give out a number first, they may try to lower the price even further once they've seen the car. Try to avoid these situations by letting shoppers know you would rather negotiate after they've seen the car.

When a person test-drives your car and likes it, you can expect him or her to make an offer. If the offer is well below your asking price, you will want to either hold firm with your asking price or make a counteroffer. An easy counteroffer is to meet the would-be buyer halfway or slightly increase the offer made to you. Give the negotiation process some thought ahead of time so you won't be caught unprepared when the time comes.

In some cases, the buyer might want to have an agreement that is contingent on you performing repair work. This can lead to misunderstandings down the line, so avoid such deals if you can. The best thing to do is discount the car so the buyer can handle the repairs without your involvement.

5. Finalize the payment and paperwork

The laws governing the sale of motor vehicles vary from state to state. Check with the governing agency in your state. Most of this information is now available online. When selling your car, it's important to limit your liability. For example, if the buyer gets a parking ticket or is in an accident, you may be held responsible. Most states have a release of liability form that you can fill out to prevent such a situation. This article on closing a used car sale has more detailed information and a handy checklist.

Once you have the money from the sale — it's customary to request a cashier's check or cash — sign the title over to the buyer or provide the person with a bill of sale. Finally, remember to contact your insurance agent to cancel your policy on the vehicle you've sold.

Bonus tip: trust your gut

Occasionally, unexpected bumps arise in the sale process. You can handle these easily if you are dealing with a reasonable person. As prospective buyers contact you, use your intuition to evaluate them. If they seem difficult, pushy or even shady, wait for another buyer. With the right person, selling a used car should be simple and easy.

Your goal is to list your car at a competitive price, but one that's on the high end of the price range. This strategy allows you room to negotiate and still wind up with a good chunk of change. So decide where you want to close the deal and work backward from there.

Say you want to sell your car for $5,000. You should list it at about $5,750. With more expensive cars, you need to leave more room, so to get $15,000, you should list the car at $16,500.

There are plenty of tools and resources for finding the sweet spot for pricing your used car. Here's a step-by-step guide to this important process:

1. Consider the market. Is your car in demand? Can you ask for top dollar? Is this the right time to sell it? Here are a few general rules to help you answer these questions.

• SUVs are in high demand right now, so they will command higher prices than sedans.
• Family sedans will always be in demand by people who need basic inexpensive transportation.
• Getting a good price for a convertible or sports car depends on the season in which you sell it. Sunny, summerlike weather brings out the buyers. If you sell in the fall and winter, prepare for the process to take longer.
• Trucks and vans, which people often use for work, sell quickly and command competitive prices. Don't underestimate their value.
• Collector cars take longer to sell and are tricky to price. However, these cars can bring good sale prices — if you find the right buyer.

Take into account any other market conditions that might have an impact on your car. For example, if your car gets good fuel economy and gas prices are high, you will be able to ask more for it than when gas is cheap. Similarly, selling a supersize SUV for top dollar is going to be tough if gas prices are sky-high.

2. Know the value of your vehicle. Use the Edmunds appraisal tool to determine the private-party value of your car. Edmunds prices are adjusted for mileage, color, options, condition and even region of the country. Keep in mind that the Edmunds private-party value is not an asking price. It's where you want to wind up after negotiations. And don't forget to take a look at other pricing guides for comparison sake.

3. Survey your competition. Review classified ads on websites where you plan to list your vehicle. These ads represent your competition and they will help you get a bearing on where to set your price. But keep in mind that these are asking prices, not selling prices, and might just be wishful thinking by the seller. Compare the cars' condition, mileage, geographic location, and asking price to guide you in setting the right price.

4. Price your vehicle competitively. As mentioned earlier, be sure to leave wiggle room for negotiations. Ask for slightly more money than you expect. If you get your asking price, that's great. But if you have to go lower, it won't be a terrible loss.

Also consider the psychological aspects of car pricing by staying just below benchmark numbers such as $10,000 (price it at $9,900) or $20,000 (price it at $19,900). Car dealers take this philosophy to an extreme by listing everything on their lots with a price that ends in "999" ($12,999, for example; apparently, we shoppers are not supposed to notice that the car basically costs $13,000). Still, this tactic demonstrates the psychology of setting prices. A product that doesn't sell well at $20 might jump off the shelf at $19.95.

But as a private-party seller, you don't want to look like a car dealer. So you might want to take a simplified approach and set your price at a round figure such as $12,750 or $12,500.

5. Tap your intuition. Once you have considered all the hard data, it's time to consult your intuition. Perhaps you have a hunch that your car is desirable, or that the time is right for you to ask a certain price. As you do this gut check, remember that it's always a good idea to err on the side of a higher asking price. If necessary, you can lower the price until you get interest from car buyers. On the other hand, if you err on the low side, you'll sell it quickly but won't get the car's full value.

What to do about hard-to-price cars

If you have a very old car or unusual car, you might not find it in some pricing guides or be able to locate others of its kind on sales sites for comparison. However, you can check Autotrader Classics and Hemmings. Both have online listings of collector cars. You also can try talking to other collectors or mechanics.

Research equals reward

Whether you're selling a 2016 Toyota Prius or a 1989 Yugo GVL, take the time to do some research before you set a price for your used car. If you do your job correctly, the car will almost seem to sell itself.