How to sell a car to a dealership
Selling a car to a dealer is a simple way to get rid of a vehicle you no longer want. It can be a good solution if you need quick cash to buy a new vehicle or an easy way to unload a used car without replacing it. When you sell a car to a dealership, the process is generally simpler than selling to a private party, but you'll likely get less for it than you would from a private party.
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Steps to selling your car to a dealership
Here are the key steps to consider before, during, and after selling your car.
Research your car's value
Use tools like Kelley Blue Book to get an idea of your car's market value. Knowing what your car is worth can help you set a realistic price and negotiate more confidently with dealers. Keep in mind that dealers may base their offer on factors like demand, local inventory, and their customer base, so it's smart to compare offers from multiple dealerships. If you want to avoid negotiations, consider Progressive Car Shopping Services by TrueCar to get guaranteed offers from local certified dealers.
Prepare your car to sell
Give your car a thorough cleaning inside and out to make a strong first impression. Dealerships are more likely to offer a better price if the car looks well cared for. Consider making minor repairs like burnt-out bulbs, topping off fluids, or touching up dents or scratches. Providing service records may also help show the car has been well maintained. To get the best offer, make it as easy as possible for the dealer to resell the car.
Gather necessary documents
Bring essential documents like your car title, registration, and if you have a loan, your loan account details. Having everything ready can speed up the process and help you get a more accurate offer.
Visit or contact dealerships
Reach out to multiple dealerships to compare offers. Some dealers allow you to get an initial appraisal online by entering your car's details, which can save time before visiting in person. Be honest about your car's condition to get the most accurate estimate. Getting quotes from a few places can help you identify a fair price and give you more leverage when negotiating.
Negotiate offers and complete the paperwork
Once you've gathered a few offers, use your research and competing quotes to negotiate the best deal. Don't hesitate to ask questions or walk away if the offer feels too low. When you're ready to move forward, the dealer will walk you through the necessary paperwork, including the bill of sale and any title or loan documents. Make sure to review everything carefully before signing.
Sign your car over to your dealer
Once you accept an offer, the dealer should handle most of the paperwork for you. If you own the car outright, bring the title and be ready to review and sign a bill of sale. If you're still paying off a loan on the car, you'll need to bring your loan information with you, inform the lienholder of the upcoming sale, and request a payoff (usually either a 10-day or 20-day payoff). This document informs the dealer of the current loan amount (remaining principal plus accrued interest) and the interest up to the specified payoff date.
Note: If you're selling a car with an active loan, you're still responsible for paying it off, so the remaining balance on the loan will likely be subtracted from the price the dealer offers you. So if you owe more than what the dealer offers, you'll need to pay the difference to the lienholder.
Example:If you owe $5,000 on your loan and the dealer offers you $6,000 to buy the car, the dealer will pay $5,000 directly to your lender, and you'll get a check for the remaining $1,000. On the other hand, if you still owe $5,000 and the dealer offers you $4,000, you'll need to pay the remaining $1,000 to the lienholder.
Can you sell your car to a dealer without buying a new one?
You can typically sell your car to a dealer even if you have no intention of buying a vehicle from them. Dealerships acquire used cars from many sources aside from trade-ins, including auctions, car rental agencies, and private parties.
How does car insurance work when selling your car to a dealership?
You should keep your car insured until the sale is final and the title is officially transferred out of your name. If something happens to the car before that point, you could still be held liable. Once the dealership owns the car and the paperwork is complete, you can cancel your policy or transfer it to your next vehicle.
If you're switching vehicles, Progressive makes it easy to update or cancel your coverage online, through the app, or by phone. Learn more about how car insurance works when selling or replacing a car.

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