Need tips on selling a used car

[Amano]

I'm trying to sell my 1999 BMW M3 (below average mileage) in about 3 weeks before I make a cross country drive. It's all paid for, and I own the title. It's been in one major accident back in February. (reported to the DMV, but for some reason Carfax doesn't have it in their report). Car was completely fixed, insurance paid for it. I have a bunch of questions because I have zero experience doing this. I live in California, and plan to sell within the state.

(Edit: I've ***'ed the more important questions that I'm particularly interested in getting answers for)

1) First, I'd welcome any general tips on selling used cars, or websites or other resources with these kinds of tips.

2) I'm considering selling to either a high-end wholesaler, or to a private party. Is it really worth the time and effort to sell to a private party? will I really get a lot more for the car (especially in light of questions #4, and $5)

3) Is 3 weeks a reasonable amount of time to get a decent price when selling to a private party? (ie. placing an ad, looking for buyers, etc)

****4) Insurance paid a lot to get the car fixed after the accident. However, I understand that with any accident, there is an inherently diminished value. How can I find out what that diminished value is?

****5) I have a fist-sized scratch (with a very minor dent), due to another car hitting it in a parking lot. Mostly, it's just the gel coat that scraped off, with about a pinhead-sized hole in the paint. It will cost about 200-300 (total cost, out of my pocket) to fix. Would it be worth fixing it before I show it to potential buyers? Will the perceived value of a car decrease significantly with the scratch?

6) I'm concerned about getting a dupe check when it comes down to payment. What things can I negotiate for to protect myself when it comes down to payment? Would it be practical to look into an escrow?

7) Do I have to pay taxes/fees as a seller (again, I'm in California)? And does the money earned from this sale count as taxable income?

8) What are the disclosure laws in California regarding accidents? Someone told me that since I am personally not a licensed car-seller, I am not bound by the state's disclosure laws, meaning that I don't have to offer information about my accident; I just have to answer truthfully if the buyer asks.

Thanks in advance for everyone's help!

[j8ear]

I would go to a BMW enthusiasts site and post it on their classifieds.

You'll sell a low mileage M3 in a New York minute..and those M heads will have all the answers for you.

Regardless of carfax history or state laws you should definately declare the repairs made because THEY WILL be discovered.

Can't help with disclosure laws in Cali...but as far as protecting yourself, get certified funds, or don't deliver title until any funds clear your bank. I'd get certified funds though!

-bear

[james t kirk]

1. Money, you can electronically transfer funds right from his account to yours.

You just walk over to your bank together, he hands the teller his bank card and the teller transfers the money to you account.

Instant, and the money is there.

Certified cheques can be forged!!! This can not.

I have sold 3 cars and used this method in 2 cases, the 3'rd was cold hard cash.


2. As far as the tax goes, the buyer pays the tax, though you may have to provide him with the safety certificate and emissions test (depending on where you live)

Other than that, the best thing you can do is to clean the car so you could eat off the floors.

I actually took my seats right out of my old 97, took out the carpets and scrubbed them with a water and Tide. The results were astounding. The car looked like new.

[pocon1]

nothing to say

[DEI37]

Yeah, definitely disclose the accident damage. That's something that will be found by anybody that knows what to look for.

As for the dent/scratch, I'd leave it alone, I think. I don't think it'd be worth the $200 to get it fixed. Get a pic up if you can...that'll tell us more. It's a seven year old car. It's not gonna be perfect, especially in a city.

Maybe try to price from a wholesaler, just to see what he'll give you...if you get a price that's close enough, or is what you're wanting for it...that's an easy route. In the meantime, it wouldn't hurt to stick an ad in the paper, and a "For Sale" sign in the window.

[bodypainter]

Originally Posted by Amano

2) I'm considering selling to either a high-end wholesaler, or to a private party. Is it really worth the time and effort to sell to a private party? will I really get a lot more for the car (especially in light of questions #4, and $5)

Yes, you should net a nice chunk more selling it an individual. What do you ballpark estimate your car is worth? I'd figure you're giving away at least 15 to 20% if you sell it to a reseller.

3) Is 3 weeks a reasonable amount of time to get a decent price when selling to a private party? (ie. placing an ad, looking for buyers, etc)

I think 3 weeks would be pushing it. It could happen, but probably not. You're looking for someone that has a lot of cash (or cash equivalent) handy and those people have a lot of choices.

****4) Insurance paid a lot to get the car fixed after the accident. However, I understand that with any accident, there is an inherently diminished value. How can I find out what that diminished value is?

Diminished value us the difference between what it would have sold for and what it will sell for. You'll never really know an exact answer to that. It's too late to worry about that now, just get the best deal you can for your car.

****5) I have a fist-sized scratch (with a very minor dent), due to another car hitting it in a parking lot. Mostly, it's just the gel coat that scraped off, with about a pinhead-sized hole in the paint. It will cost about 200-300 (total cost, out of my pocket) to fix. Would it be worth fixing it before I show it to potential buyers? Will the perceived value of a car decrease significantly with the scratch?

If it's really $200 - $300 you're only talking about 1 or 2% of the value of the car. I'd do it for sure if I was going for a private sale and not do it if I'm taking it to a dealer.

6) I'm concerned about getting a dupe check when it comes down to payment. What things can I negotiate for to protect myself when it comes down to payment? Would it be practical to look into an escrow?

Cash is king. Cashier's checks drawn on a bank you can call on the phone and verify at purchase time are good too. Electronic transfers are okay if your buyer is willing to do it.

7) Do I have to pay taxes/fees as a seller (again, I'm in California)? And does the money earned from this sale count as taxable income?

No and no (AFAIK).

8) What are the disclosure laws in California regarding accidents? Someone told me that since I am personally not a licensed car-seller, I am not bound by the state's disclosure laws, meaning that I don't have to offer information about my accident; I just have to answer truthfully if the buyer asks.

That's probably true but you should disclose everything anyway. It's the right thing to do.