Things to know before you sell a second-hand car
Key takeaways
- Clean the car inside and out before you list it, and keep it that way until it sells.
- Price it against comparable cars of similar age, kilometres and condition, and decide your lowest acceptable price before anyone starts negotiating.
- Disclose known faults, remaining registration and any finance owing, and have your service history and state paperwork ready.
- Only hand over the car and keys once the full payment has cleared in your account.
Planning to sell your current car before you buy the next one? A little preparation goes a long way. Knowing what buyers look for, and where private sales tend to go wrong, puts you in a much better position to get a fair price without the process dragging on.
Here’s what to sort out before you list a second-hand car for sale, from presentation and pricing through to paperwork and closing the deal.
Make sure your car looks its best
Nobody wants to buy a car that looks neglected. Dirt, clutter and small cosmetic damage make buyers wonder what else has been overlooked, and they’ll factor that into their offer.
Before you take a single photo, clean the car thoroughly inside and out:
- Wash and polish the paintwork, and clean the wheels and tyres.
- Vacuum the carpets, seats and boot, and wipe down the dash, console and door trims.
- Clean the glass inside and out, and remove personal items and clutter.
- Deal with odours. A car that smells of smoke, pets or takeaway food is a hard sell.
Then keep it that way for as long as it’s on the market. A car that looks great in the photos but turns up dusty for an inspection undoes that good first impression. Our guide to preparing your car for sale goes into more detail.
Set a realistic price
An overpriced car sits unsold, and the longer a listing stays up, the more buyers assume something is wrong with it. Do your research before you settle on a figure. Look at comparable cars currently for sale with a similar age, kilometres, specification and condition, and be honest about where yours sits among them. It also helps to understand the factors that determine a used vehicle’s value.
If you’re set on asking more than similar listings, make sure buyers can see why. Factory options, quality accessories, low kilometres, a complete service history or recent big-ticket work such as new tyres can all justify a higher price, but only if your ad spells them out. Modifications are worth mentioning too, though keep in mind they appeal to some buyers and put others off.
Advertise carefully
Advertising almost anything online is easy these days, but it pays to be careful when you’re selling a car. Choose a platform that shows off your car well while keeping your personal details private. Many listing sites let buyers contact you through the platform rather than calling your number directly, so use that where you can, and never publish your home address.
A good ad does a lot of the selling for you:
- Photos: take plenty of sharp, well-lit photos in daylight, covering the exterior from every angle, the interior, the boot, the odometer and any damage.
- Description: keep it clear, concise and attention-grabbing. Include the make, model, variant, year, kilometres, transmission, service history, registration expiry and any notable features.
- Reach: the more genuine buyers who see your car, the better your chances of a quick sale at a fair price, so look for ways to get the listing in front of as many people as possible.
When buyers come to inspect, it’s sensible to have someone with you, check the buyer’s driver’s licence before a test drive, and go along for the drive.
Be honest
Don’t advertise your car as something it isn’t. Ideally, have it serviced and fix any known faults before you list it. If issues remain, make sure every potential buyer knows about them, even if that means lowering your asking price. Problems usually come out during an inspection anyway, and being caught out late in the process damages trust and often ends the sale.
Be just as clear about how much registration is left and whether there is finance owing on the car. Buyers can search the Personal Property Securities Register (PPSR) to see whether money is owed against a vehicle, so it’s better to raise it yourself. Finance doesn’t stop you selling, but it does need to be paid out as part of the sale. If that applies to you, here’s how selling a car under finance works.
Double-check your paperwork
Get your documents together before you advertise. Each state and territory has its own rules for selling a used vehicle, so read up on the requirements on your local transport authority’s website. Typically you’ll want:
- your registration papers and proof of ownership
- the service logbook and receipts for maintenance and repairs
- the owner’s manual and all keys
- any certificate your state requires for a sale or transfer, such as a Roadworthy Certificate in Victoria or a safety certificate in Queensland
The more documentation you have showing the car has been looked after, the better. A thorough maintenance history reassures buyers and can tip the balance when they’re weighing your car against a similar one.
Bargaining and finalising the deal
Expect buyers to negotiate. Before you even start, decide the lowest price you’re willing to accept. It’s easy to be talked down on the spot, and having a firm number in mind helps you stay calm and only agree to a deal that works for you.
Once you’ve agreed on a price:
- Get paid in full first. Only hand over the car and keys once the money has cleared in your account. Be wary of anyone pushing you to release the car before payment lands.
- Write a receipt. Record the date, price, both parties’ names and addresses, the VIN, registration number and odometer reading. Both of you should sign it, and you should keep a copy.
- Notify the sale. Tell your state’s transport authority about the sale within the time it sets. Doing this promptly protects you from tolls, fines and other liabilities the new owner might rack up.
- Tidy up loose ends. Remove your toll tag, unpair your phone and clear personal data from the infotainment system, and take out garage remotes and any belongings.
Prefer to skip the private sale?
Selling privately can get a good result, but it takes time: cleaning, photographing, answering enquiries, hosting inspections and haggling. If you’d rather avoid all that, Sell Your Car Australia buys vehicles 2021 or newer with 100,000 km or less, of any make.
You fill in a short form, our team calls you back quickly, and you receive a genuine cash offer rather than an automated estimate. Once you accept, a deposit can be paid quickly. After an inspection, the balance is paid into your account, and the car is only collected after the funds have cleared. Cars under finance are fine too, as we work with your lender. To find out what your car is worth, start with a free, no-obligation valuation.
Questions sellers ask
What paperwork do I need to sell a second-hand car in Australia?
Have your registration papers, proof of ownership, service logbook and repair receipts ready, plus any certificate your state requires for a sale or transfer, such as a Roadworthy Certificate in Victoria or a safety certificate in Queensland. Rules differ between states and territories, so check with your local transport authority, and notify them of the sale once it's done.
When should I hand over the keys to a private buyer?
Only once you've been paid in full and the money has cleared in your account. Write a receipt with the date, price, both parties' details, the VIN, registration number and odometer reading, and keep a signed copy.
Do I have to tell buyers about faults with my car?
You should. Fix what you reasonably can before listing and disclose anything that remains, even if it means adjusting your price. Faults usually surface during an inspection anyway, and being upfront keeps the buyer's trust and the sale on track.
