How to sell a car privately

Tips for selling a car privately

You may be able to get a better price for your car when you sell it yourself compared to trading in a car. Follow these steps to sell your car to a private party:

Determine a fair asking price

Use online valuation tools like Kelley Blue Book, Edmund's, or Progressive's Car Shopping Services provided by TrueCar to set a fair price. Be honest about your car's condition to get an accurate estimate. These tools provide a price range that's typically lower for dealer trade-ins and higher for private sales.

Prepare your vehicle for sale

Before selling your car privately, wash, vacuum, dust, and consider a full detail to boost its appeal. Remove all personal items and unlink your phone or accounts from the car's electronic systems. Take clear, well-lit photos from multiple angles, including any defects. High-quality photos can make a big difference in attracting a buyer.

Prepare the paperwork

Paperwork requirements for selling your car privately vary by state, but it's best to gather key documents in advance. Review the vehicle's motor vehicle history report and have maintenance records ready to support your asking price. You'll also need to disclose the mileage, as required by federal law, and include any transferable warranties. If there's no warranty, clearly state that the car is being sold "as-is."

Find potential buyers

Once your car is ready to sell, choose a method that's safe and secure. Selling to someone you know may feel more comfortable, but be careful not to skip safeguards when dealing with a friend or family member.

Online listings can reach more buyers, but beware of scams. Avoid sharing personal info and insist on in-person test drives. Local ads, like newspaper listings or flyers, offer a more targeted audience but still require caution when meeting strangers.

Contact your potential buyers

Some online classifieds have a built-in forwarding service that doesn't disclose your email address. If you won't be communicating through an online selling tool, consider creating an email address just for the sale. This allows you to avoid broadcasting your personal contact information and keeps messages about the sale in one easy-to-find place.

Meet for test drives

For a safe test drive, meet in a busy public place during the day and bring a friend. Share your plan with someone you trust, and bring only essentials, such as your license, insurance, phone, and car key.

Ask the potential buyer for their info and proof of insurance, and agree on a test drive route in advance. Ideally, it should include streets and the highway to give the buyer a fair impression of the car. An agreed-upon route establishes a time frame for your return.

Protect your finances

On top of protecting your physical safety, consider taking these financial and legal safety precautions when selling your car:

• Ask for the driver's proof of insurance: Make sure the driver has liability coverage in case of an accident during the test drive.
• Get everything in writing: Document the sale details, including payment, vehicle info, and title transfer. If the buyer refuses to provide this information or sign paperwork, you can walk away.
• Wait for the money to come in: Don't transfer the ownership until you've received full, verified payment. You can insist upon a cashier's check or confirmed electronic transfer if you prefer.
• Keep your car insured while it's yours: Stay insured until the title and registration are officially in the buyer's name.
• Complete the paperwork: Check your state's DMV or BMV rules. Go with the buyer to finalize the paperwork if needed.

What's the safest payment method when selling a car?

The safest payment method for private car sales is usually a direct bank transfer (wire transfer), which requires the buyer to transfer funds from their bank account to yours. Once your bank has confirmed that the funds have cleared, you can transfer vehicle ownership. Bank wire transfers are traceable, which reduces the risk of fraud.

How to safely sell a car

Consider using these tips as you prepare to safely sell your vehicle to a private party:

1. Screen potential buyers: Speak with potential buyers before you agree to meet them in person. Avoid sharing any more personal information than is necessary.
2. Meet in a safe location: Meet potential buyers in a well-lit, public place that has parking lot cameras, like your local police station's parking lot, a bank parking lot, or a busy mall.
3. Verify the buyer's identity: Before finalizing the deal, ask for the buyer's full name, contact information and a valid driver's license.
4. Be skeptical of overpayment: If a buyer offers more than the asking price and then wants a refund for the difference, they may be a fraudulent buyer.
5. Use a secure payment method: Agree on the payment method before meeting with the buyer in person. If they insist on paying in cash, complete the transaction at your local bank where you can verify the authenticity of the funds.

Remember, safety is a primary concern. Trust your instincts and move cautiously when privately selling your car. If something doesn't feel right to you, it's OK to walk away from the deal.

How car insurance works after a private sale

You're still responsible for the car and its insurance until the car is officially transferred to the new owner. Keep your insurance coverage active until the title is signed over and the buyer registers the car in their name. Once the sale is complete, contact your insurer to cancel the policy or remove the vehicle from your coverage. If you're replacing the car, your existing coverage may transfer to your new vehicle. Keep your insurer in the loop to avoid coverage gaps or unnecessary changes.

Update your coverage with Progressive after selling a car

Current Progressive customers

You can log in or call 1-866-749-7436 to adjust your coverages.

New Progressive customers

Quote auto insurance online or call 1-866-749-7436 to insure your car.