If you’re ready to sell your car, you may have wondered whether you should approach a dealership, or advertise it privately online.
We have a look at what you stand to gain from both options, and we consider a couple of useful tips you should keep in mind.
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Dealerships can mitigate certain risks
Nunben Dixon, head of automotive at Gumtree, points out that trust and safety are extremely important when it comes to selling your vehicle. Security is a significant issue in South Africa, and the risk of fraud and scams is ever-present.
“It becomes complicated when you need to decide where you and the buyer should meet, how the payment will be handled, and how you will deal with the paperwork, such as the Notification of Change of Ownership (NCO) form, which needs to be submitted to your local licensing department,” says Dixon.
Selling a car to a dealership, he notes, removes or mitigates many of these risks.
“The dealership will handle all the paperwork, and their payment is generally efficient and on time.”
If you are selling your vehicle with the aim of buying another, the dealership can be a one-stop-shop for achieving both, Dixon says. “However, you should ensure that you’re dealing with a credible, established dealer. Check out online reviews, and do background checks where possible.”
READ MORE: Inside the car dealership: When is the best time to buy a car?
Private sales can be more lucrative
Dixon says that if you choose to sell your car privately, you are more likely to receive the full retail value for it.
One of the biggest advantages is that the target buyer could be another consumer and, unlike dealers, they may not be planning to sell the vehicle right after buying it. This means that they won’t be compelled to negotiate for the lowest price in order to make a profit.
“If you sell your car yourself, you also have the advantage of marketing the car to a broad range of potential buyers – from the end-consumer to traders and dealers,” says Dixon.
“You as the seller are in control of the transaction, and you can elect to adjust the pricing depending on demand.” With all of this in mind, he believes the seller may even get more than the asking price.
READ MORE: Second-hand vehicles are growing in popularity
What else should you keep in mind?
Dixon says that your number one priority should be to do your research.
“There is a plethora of data points at your disposal around pricing, stock availability, and geo-locations. You should use this information to market your car accurately,” says Dixon.
“If the vehicle you’re selling is financed, be sure to pull the settlement value from the financial institution first. The biggest mistake that sellers make is inaccurate pricing.”
Dixon says that you should ensure that your car is clean and that all available information is showcased to either the dealer or your online audience.
“Things such as a full service history, spare keys, and pictures of a clean engine bay are all signs of a good quality car,” says Dixon.
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