Selling a car to a friend sounds like a fantastic idea. You move your existing vehicle onto an owner you trust, and in return they receive a car that they know the history of. Despite this scenario sounding ideal, the outcome can be problematic, especially if either party perceives that they aren’t receiving their fair share of the benefits. In this blog, we’ll run through exactly what those benefits are, along with what you should and shouldn’t do when selling your car to a friend.
Why Sell a Car to a Friend?
Selling a car to a friend can have a number of benefits, especially if they do not own one and you need to move on your current vehicle quickly. Beyond that mutual benefit, there are several other specific advantages of selling your vehicle to a friend, including:
Buyer familiarity: Unlike a traditional car sale, you know the buyer well, removing any communication barriers and potential trust issues.
Cost savings: Private site advertising fees and dealership sale costs are avoided when you sell your car to a friend.
Convenience: Selling your car to a friend means it doesn’t have to be advertised on the market, reducing the time needed to take photos, post the ad and respond to enquiries.
Easier negotiation: While every case is different, some people may find negotiating with a friend slightly easier than with a stranger
Buyer confidence: Your friend may be drawn to purchasing your car because they trust you more than a dealer or private seller.
How Do I Sell My Car to a Friend?
If you are planning on selling your car to a friend, the process is similar to what you would go through when listing it privately or through a dealer. Many steps, including cleaning the car’s interior and exterior, preparing purchase and service documentation, and having any maintenance items attended to, should be completed regardless of who you are selling your car to.
Something that should be considered when selling a car to a friend or family member is the asking price. Without consulting an industry professional, it can be difficult to accurately gauge your vehicle’s value at the time of sale. If you can’t find a conclusive answer in your research, have your car valued professionally to ensure neither you or your friend are disadvantaged by the outcome.
How to Sell My Car to a Friend: What To Do
When selling your car to a friend, it’s important to ensure that both parties are valued equally throughout the transaction. Here are our top tips on what to do when selling a car to a friend:
Consult a professional for an accurate market value
While research can take you so far, it may still be worth engaging someone from the industry to conduct a professional appraisal of your vehicle. This can be especially valuable if your vehicle is rare or unique in some way, or if you and your friend cannot agree on a selling price from your individual research.Be completely honest about the car’s condition
Provide a detailed and honest account of the way in which you have used the car and any issues it may have. Aside from the thought of stranding a friend at the side of the road, these off-market transactions won’t come with a warranty like a regular dealership sale.Create a written agreement
Written evidence of the transaction is tedious, but necessary. Some Australian states and territories may not issue the new owner the registration if proof of ownership cannot be shown. Create a receipt or other proof of sale document to legitimise the purchase.Be available post-sale
If your friend has questions or needs help with their new purchase, be attentive. Your car is a learning curve for them as much as it was for you when you first purchased it, so concerns and queries are only natural.
How to Sell My Car to a Friend: What Not To Do
To ensure your vehicle sale proceeds smoothly, and both you and your friend are satisfied with the outcome, we recommend that you avoid the following:
Don’t forget the formal documentation
Whether it’s a sale agreement or a flexible payment option, ensure everything is agreed to in writing when selling a car to a friend. Without the legal protection of selling through a dealer or even listing privately, selling your car off-market to a friend can experience several hiccups if not correctly documented.
Avoid rushing the sale
Rushing your friend into a decision adds unnecessary pressure to the sale. While it is understandable that you want to sell your car quickly, giving them time to think and come to a decision is important to prolong your friendship.Prevent an emotionally-charged transaction
While you are selling your car to a friend, the transaction is still business-oriented at the end of the day. Keep the dealings professional and ensure all legal and financial obligations are complete before handing over the keys.Don’t skip over problems
Being honest is the best way to sell a car to anyone, especially a friend. If you car has issues you couldn’t fix before the sale, don’t hide them from your friend during their inspection.
Sell Your Car Easy With AutoFlip
Selling a car to a friend can be a valuable and effective way of moving your vehicle to a loving new home quickly. Knowing the dos and don’ts of selling your car to a friend helps ensure the transaction is beneficial to both parties, netting both a quick sale and a satisfied buyer.
If you’re looking for other hassle-free car selling options, submit your vehicle’s details to AutoFlip. Our network of over 1000 dealers bid competitively to buy your car for its true market value. Get an instant offer or sell your car for cash today.
