If you are in a pinch and need cash fast, one way is by selling your car. There are businesses out there that offer title loans on vehicles, a car title loan is a loan that is secured against your vehicle. You keep the vehicle but should you default on the loan, the lender can sell the vehicle to recoup their losses. While this is an option, we are going to focus on how to avoid being lowballed when selling your car.
Working out what your car is currently worth
This is a tough question because it can be difficult performing an apples-to-apples comparison. With real estate, you take the square footage of your property and compare it with the selling price of similar properties in the area over the last 90 days.
Used car prices are climbing every day, so you will be hard-pressed to figure out a number on your own. There are websites like AutoTrader and Kelly Blue Book, but even they don’t agree on prices.
You can get a professional appraisal from a local car dealership, these dealerships will usually have the most accurate pricing models because they are constantly buying and selling cars.
The reason it is difficult coming up with a price on a used car is unlike a new car that has an MSRP, the price of a used car is whatever the market is willing to pay for it. That’s why it’s pretty easy to accidentally get lowballed when selling your car
Stay away from social media
Social media marketplaces are very popular but it is not the ideal place to try and sell your car for quick cash. The buyers on these platforms do not specialize in buying cars and are just “browsing” to see what is available.
You could end up spending days going back and forth with potential buyers only to not have a deal close or have a lowball offer that simply doesn’t make sense.
Another risk associated with advertising on social media is there could be criminals who see you are trying to sell your car. They will wait until you are away from home and then steal the catalytic converters off your car. Catalytic converters theft is on the rise, so you are putting yourself at risk by advertising your car to people who steal these converters.
Path of least resistance
Since you need urgent cash, your best bet is to go to your local dealership and find out what they are willing to pay. The initial step is to conduct an appraisal and explain how they determined the current value of the car.
The appraisal value is what the car is worth in the eyes of the dealership but not what they can pay. These dealerships are in the business of buying and selling cars, so they have to make a profit by paying you less than the appraised value of the car.
If you accept the offer, you will have the funds available to you right away which is great when you need money fast. By going directly to your trusted local dealership, you will avoid all chance’s of being lowballed when selling your car.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!