Understand how Used Car Sales Work for Private Individuals

Today, private individuals who desire to sell their used car can follow two paths to realize this desire. The first is to go to a dealership or resale store to evaluate and sell the car. The second is to get a buyer, who would also be an individual.

As you may have probably noticed, the sale to dealers and resellers devalues the price of the car, once intermediaries are fired, and each party wants to profit from the deal.

And the direct sale to a natural person? How does it happen? Understand now how the used car sale works directly for a particular buyer.

No obligation to provide guarantees

The sale of a used car from the owner to another individual does not require the transfer of collateral. When this same sale is made by a retailer, store, or legal entity, the consumer is entitled, guaranteed by the Consumer Protection Code, through a 90 days warranty. Moreover, transactions between individuals are not governed by the consumer code.

The price of the vehicle should be attractive

The car to be sold directly by the individual may not have the advantage of the guarantee that the store provides, but its price tends to be much more competitive. The absence of intermediaries between the private seller and the buyer can reduce the price by up to 20% if compared to the values practiced in the stores.

Read also: Top 5 Things to Note Before Selling Your Car

Trust between the parties is indispensable

When an individual decides to sell their car, it is subject to all types of people, including those who are ill-intentioned. Find a buyer reference to discover if the other party is legitimate.

Be extremely clear

When the seller of the used car knows the buyer, and this is a close person, a lot of friction can arise if one of the parties is dissatisfied with the business. Whether it is due to the non-payment on the day of the combined values or by the frustrated expectation post-purchase, the sale between acquaintances can generate constraints. To avoid this, be absolutely clear about the conditions of the vehicles and the terms of the negotiation.

Some cares are crucial in negotiating

Check the price and establish a fair value for your car, considering also its history.

Resolve any issues before you sell. Be with all taxes and clearance documents of the vehicle on time.

The maintenance of the vehicle must also be up to date. By following the schedule of reviews of your car and solving any problems it has presented, list all the maintenance history to present to the buyer.

It is necessary to pay attention to the documentation

Properly handling the documentation of your vehicle is another important aspect, so that you are not liable for fines and other problems during the period in which the buyer does not transfer the vehicle to his name. Also, the following steps should be observed to the letter, so as to avoid future problems:

  • Remember to deliver the proof of payment of the Tenancy Tax of the last five years and the current one.
  • If you lost any proof of payment of tenure, request certification of this in the Ministry of Finance or designated Service Centers.
  • Make sure that the purchaser carries out the change of ownership procedure adequately, as it is not enough to sign a purchase-sale letter as responsive, transferring the rights or acquiring them.
  • In case you wish to cancel the license plates and the circulation card that is in your name, process a provisional permit for 30 days, in order for the current owner to replace these items.

In conclusion, the used car market has experienced, for some time, high moments. With this scenario which could make you migrate from the new to the used cars market, selling your car as an individual can be a good alternative if you need cash or want to trade for a newer model. However, there exist some possible traps in this form of sale, but the tips above could act as a sure guide, so you do not fall into those traps.

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