How to sell your car

Looking to sell your car? The first step is to decide how you want to do it.

You could sell it privately to another driver and use the cash to buy a new vehicle - or anything else you want.

If you are planning on buying another car with the proceeds, you could also trade your current car in as part exchange on a new one from a dealer - or simply sell your car to a dealer outright.

The last option is only really an attractive one if you are in a big rush to sell or have no time to market the vehicle yourself, because selling outright to a dealer will never get you the best price.

In fact, selling to a private individual should enable you to get 10% or 15% more than you would from a dealer, who will only ever pay the "trade" rather than the "retail" price.

So say you are selling a car worth about £5,000, you stand to make an extra £500 or more by finding a private buyer yourself.

Private sales have disadvantages, though. It is up to you to advertise the car and deal with interested parties.

And that means dealing with calls or messages, arranging viewings and test drives and watching out for scams such as dodgy payments.

That's why people who are trading their cars in for a new one often opt for part exchange, with which you often get a slightly better deal than selling your car outright to a dealer.

The main advantage of this approach is that it's so easy. There's no writing adverts or fielding calls, and if something goes wrong you can take it up with the dealership.

You'll still never get as much as you could from a private sale, however.

Top tips
However you decide to sell your car, our top tips will help you get the best possible price...

1. When selling a car privately, advertise it online as well as locally, and make sure you describe the vehicle accurately in your ads.

2. When trading in a car, remember that different dealers will offer you different valuations, making shopping around a sensible move.

3. However you sell your car, make sure it is roadworthy and that you have all the relevant paperwork, including the V5C registration certificate, the service history and MOT certificate.

4. Private buyers will pay a lot more for a clean car, so give it a thorough going over inside and out, and get rid of any evidence of dog hairs or cigarette smoke.

5. Whether you sell to a dealer or a private buyer, tell DVLA that you have sold the car immediately. That way, you'll automatically get a refund from DVLA of any road tax you've still got left to run.

6. When selling privately, never let the buyer go on a test drive alone – they may not come back! Check too that they are insured to drive, and protect yourself by choosing a secure payment method such as Paypal if you opt for a private sale.

7. Don't be afraid to haggle with dealers when arranging a part exchange. Most will work a bit of flexibility into their price as they know people like to think they have negotiated a better deal.

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