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ShareMumbai: Dusshera is around the corner, so electronic goods and machines, including cars, should see an increase in demand. And with the economic situation not improving much after the recession, analysts say this time, there would be buyers for used cars as well.
If you want to sell your car this festive season, minute details could make a difference in the price you get. DNA Money takes you through the process to a better deal.
Deciding on the price
The value of your car will depend on both its external and internal condition, such as dents on the body, condition of the colour, mirrors, glass, tyres, engine capacity, the kilometres it has run, the mileage it gives, the lights, seat covers and any noises that the engine or car makes.
However, the frame of the car is the most important part of evaluating a car's selling
price. Some dealers refuse to sell a car whose frame is damaged. External valuation agencies can help you value your car. Mahindra First Choice Wheels, for instance, will perform 118 checks to evaluate the car's price.
Evaluating a middleman
If you want to avoid a middleman because of the additional cost, you can spread the word among your friends, relatives, neighbours and office colleagues. However, don't disclose the price.
Be choosy in revealing your selling price only to serious buyers that your network of people suggests. You can post an ad on your society notice board or in a newspaper. Suggest a time for being contacting, so that you won't be stuck in a meeting and unable to respond.
In case you engage a dealer, the deal would work out similar to that in case of buying or selling a house. The car dealer will sell the car for a higher value that your estimate. He will keep a portion of the excess and give the balance to you.
Get a dealer in the way
Alternatively, you can even sell the car to a dealer, who in turn may sell it immediately or at a later date depending on the price he gets.
Experts say company-owned used car dealersare a better option than local car dealers, as the price of the car would be better determined by the company dealer. Maruti Suzuki India, Tata Motors, Mahindra & Mahindra, Toyota, etc have separate showrooms and sometimes, separate websites for selling used cars of their brand.
Banwari Lal Sharma, assistant CP - products at Carwale.com says, "Dealers offer a 'Park and Sell' method, where you can keep the car at the dealer's showroom without having to sell the car to him. The dealer charges around 1-2% of the selling amount from both the buyer and the seller, once the car gets sold."
However, Sharma says, "You will get a better price if you try to sell it to an individual. However, if you are in a great hurry to sell the car, then you can engage a dealer."
Use the net to your advantage
The Internet too can help you get a better deal. There are many websites that provide a platform for buyers and sellers. These include automartindia.com, carwale.com, gaadi.com, carsalesindia.com and even car company websites. Some of these even provide the price of the cars put up for sale. You can compare the price for your kind of model on the websites.
While registering on these websites as a seller, you will need to input details of your car such as car model, variant, colour, registration number, the run it has had, any previous owners, the car accessories, the price you expect and your contact details. Most of the websites allow you to upload photos of your car as well.
Most websites don't charge you for uploading the details of your car as they earn their revenues from other sources.
Ensure the paperwork is intact
The documents of the car are as essential in determining the price as the other factors. If you do not have original car papers, the value may go down, as questions are raised on the ownership of the car and registration.
You car file should include the registration book -- commonly called the RC book -- the receipt of car from the dealer you bought it, user's manual, insurance and loan documents.
Your address and photo ID proof may also be required. It is better to have a neatly filed set of documents than a haphazardly placed set, where it is difficult for you yourself to find a required paper.
What if the car is under a loan?
You can't transfer the loan to another person, says Sharma of Carwale.com. Incase of a loan on the car, you need to sit with the buyer or dealer and decide on the final payoff.
In an ideal situation, the buyer of your car would want a no-objection certificate (NOC) from the bank that financed your car before making his payment. But these days, a person often uses the car sale amount to pay off the existing loan and then gets the certificates. Usually there is an understanding that the NOC from the bank can be submitted 7-10 days after the deal is done and money paid.
Keep the insurance for yourself
The insurance on your car can either be transferred to the buyer or can be held by yourself. If you have not made insurance claims during the period you had it, you gather what is called a no-claim-bonus. This bonus is on the owner's name and not the car's name, says Sharma.
In case you have a fantastic no-claim bonus, then you shouldn't transfer the car insurance to the new buyer. On the same you can get a premium differential for your good track record.
