What is the best way to sell a second-hand car?

Want to sell your second-hand car but not sure where to begin?

The first and most important step is deciding how you’re going to sell it. Each method balances price, speed and effort differently, so the “best” way depends on what matters most to you. To help you get started, here’s a simple guide to the pros and cons of the three main options.

Sell your car privately

A private sale puts you in control. You decide how to advertise the car, which buyer to deal with and what price you’re prepared to accept. Because there’s no dealer taking a margin, it’s usually the way to get the most money for your car.

The catch is that a private sale relies entirely on you, so it’s up to you to do all the work. Expect to:

• Research a realistic asking price by comparing similar listings (same make, model, year, kilometres and condition).
• Prepare the car with a thorough clean, any minor fixes and your service history, so it’s presentable and ready for its new owner.
• Write and manage the ad, including good photos, then field the calls and messages that follow, many of them from time-wasters.
• Arrange inspections and test drives, which means meeting strangers and checking they’re licensed to drive before handing over the keys.
• Get the paperwork right, from the registration transfer to notifying your state transport authority that you’ve sold the car. In some states, such as Victoria and Queensland, you’ll generally need a roadworthy or safety certificate as well.

Be careful with payment, too. Only hand over the car once the money has genuinely cleared in your account, and be wary of buyers who push for unusual payment arrangements.

If you decide to go down this path, our guide on how to sell your car online for free covers listing tips. A private sale is a great way to get the best price, but it isn’t a good fit if you’re short on time or want a simpler, lower-risk sale.

Sell to a car dealer

This is where dealerships come in. You can sell your car to any used car dealer, or to a franchised dealer of your car’s brand, such as taking a Kia to a Kia dealer or an Audi to an Audi dealer. A dealer that specialises in your brand may be more interested in your car, because they know the model and have customers looking for it.

Selling to a dealer can hit the sweet spot between saving time and still getting a fair deal. There’s no advertising, no strangers at your door, and the dealer takes care of most of the paperwork.

The trade-off is choice. Some dealers are mainly interested in trade-ins, which means their best offer may depend on you buying your next car from them. That isn’t ideal if you don’t want another vehicle, want a different make, or would rather shop around. And because a dealer needs room to recondition and resell the car at a profit, a trade-in offer is typically lower than what you could achieve privately.

If you do trade in, negotiate the price of the new car and the value of your trade-in separately. That way a generous-looking trade-in figure can’t simply be offset by a higher price on the car you’re buying.

Use a cash-for-cars service

Looking for the most convenient way to sell your car? Your best bet is a cash-for-cars service. You can get a quote over the phone or online, and it can be a matter of days, rather than weeks, until your car is sold and the money is in your account. You don’t have to buy another car to get the deal.

Not every cash-for-cars business works the same way. Broadly, there are two kinds:

• Car buyers purchase good-condition, saleable vehicles, usually newer cars with reasonable kilometres, and base their offer on what the car is worth in the used market.
• Car removal and wrecking services take away cars that are old, damaged, written off or no longer running, typically for parts or scrap. If your car has been written off or won’t run, this is usually the most practical way to get some cash for it.

Whichever type you use, check that the business is properly licensed, get the offer confirmed before anyone collects the car, and make sure you’ve been paid before it leaves your driveway.

So which is the best way for you?

• Choose a private sale if getting top dollar is your priority and you have the time and patience to manage the whole process.
• Choose a dealer if you’re buying another car anyway and want to handle both in one transaction.
• Choose a cash-for-cars buyer if you value speed and certainty, with no advertising, no trade-in strings and no strangers test-driving your car.

Whichever route you take, it pays to know roughly what your car is worth before you accept an offer. Our article on things to know before you sell a second-hand car is a good place to start.

Want cash for your second-hand car?

Sell Your Car Australia is a licensed motor dealer buying cars across the country, including Sydney, Melbourne, Brisbane, regional NSW, Western Australia, South Australia and Tasmania. We’re currently buying vehicles that are 2021 or newer, with 100,000 km or less. Any make is welcome, and there’s strong demand for European and prestige cars, utes and SUVs.

Here’s how it works:

1. Fill in a short form for a free, no-obligation valuation.
2. Our team calls you quickly with a genuine cash offer, not a data-driven estimate.
3. Once you agree, a deposit can be paid quickly, followed by an inspection of the car.
4. The balance is paid into your account, and your car is only collected after the funds have cleared.

Cars under finance are fine too. We work with your lender to settle the loan, which usually takes 2-3 business days. Prefer to talk it through? Call us on 1800 73 55 73.