6 things to consider while selling your car

Updated : January 23, 2021 09:45 AM IST

While planning to sell the car, there are certain factors that need to be considered.

While planning to sell a car, there are certain factors that need to be considered that would help you get the best deal.

Here are some of them:

Study the value of the car

According to Rakesh Goyal, Director, Probus Insurance – an insurtech broking company - it's very essential to study the market by researching well before selling the car.

"Having information about the market trends, the best time to sell the car, and the car's real market value would help sellers find the best possible deal for the vehicle. One can do this bit of research on their own or even consult an experienced car trader for in-depth detail. After deducting the depreciation value from the car's original cost, the Insured Declared Value, i.e. IDV, is calculated and is a vital factor for the car insurance policy," Goyal suggests.

Get the car ready

Before selling the car, individuals should ensure that they have fixed all the small or minor faults and the car is in a good state while they are presenting it to the buyer.

"If needed, sellers can do the basic cosmetic changes to the car that would give it some fresh and appealing look. Doing these actions would help sellers in negotiating well on the car value with the buyer," Goyal explains.

Get the paperwork done

Having all the documents in place is the crucial aspect, tells Goyal, when it comes to selling the car, as it sets as proof that the seller has cleared all the liabilities (if any) before selling the car to the new owner.

Some of the important documents that need to be in hand while selling the car are Regional Transport Office (RTO) tax details, NOC (if the car is bought on loan), pollution/emissions certificate, registration certificate, service history documents, etc.

Transfer all necessary documents to the buyer

According to Krishna Veer Singh, President - Marketplace, Droom, sellers should always provide all the necessary documents to the buyer, including the car's insurance policy. If the policy is valid for, say, six months from the date of sale, the buyer can get it transferred without paying any extra insurance premium.

Offer free and fair inspection report

Sellers must offer an unbiased inspection report to the buyer, Singh says, as the report covers an exhaustive inspection checklist covering all major checkpoints like the number of owners, accidental history, date of manufacture, and so on.

"Sellers should also provide a history of the vehicle and ensure that they are open and transparent with potential buyers. They must offer proper vehicle history so that buyers can verify the authenticity of the details provided,” he opines.

Decide on the mode of selling

Individuals can either prefer to sell the car online or through any car trader, the option lies with the seller. "They can go with the preferred option as per the suitability. Selling the car online can be more hassle-free as it would ensure the end-to-end solution without the need for any additional efforts," Goyal stresses.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

6 things to consider while selling your car

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