Latest Trend: Do-It-Yourself Used Car Dealer

Lately there has been an uptick in the number of consumers taking on the role of a used car dealer. According to a recent article in Automotive News, an auto industry trade magazine, a study conducted in the second-quarter of 2010 by Kelly Blue Book, which sets the value for used vehicles, found that 56 percent of consumers planned to trade-in their vehicle at a dealership. This was down from 64 percent, when the same study was conducted last year.

Thus, this means that  more consumers are either opting to hold on to their trade, pass it down to a family member, donate the vehicle to a charity or either make an attempt to sell it themselves. In fact, this same study conducted by Kelly Blue Book found that while only 13 percent of consumers planned to take the do-it-yourself route in 2009, by the second-quarter of 2010, that number had almost doubled to 21 percent.

We suspect that the tight economy along with the popularity of do-it-yourself used car websites and other social media formats have encouraged more people to assume the role typically reserved for a used car dealer. Also when one takes on the responsibility of being a used car dealer, they assume more risk, which typically equates to a higher transaction price, than they would receive if they opt to trade-in their personal vehicle to a licensed dealer.

For those planning to take the do-it-yourself route, here's what we recommend:

• Provide a clear title. Without a clear title and the trade being paid off, it will be extremely difficult to personally sell the vehicle. Unless its a good friend or a family member, what's the likelihood of  someone buying a vehicle from you without a clear and free title? That's one of the main reasons why most folks trade their vehicle into a dealer, avoiding the hassle.
• Remember the simple rule of supply and demand. Price the vehicle below competing area used car dealers selling similar vehicles. Dealers have an advantage, since they're able to provide a warranty,  financing, a thorough inspection, or an extended service contract. By pricing the vehicle below the competition, this is one great way to generate traffic.Only ask for top dollars, if the vehicle is in top shape.
• Provide maintenance (and service) records. This helps to build value and confidence with the buyer.
  
  
• Provide a free vehicle history report. Feel free to access one on our website for your vehicle.
• Make sure that you don't allow potential buyers to test drive the vehicle at your residence. For safety reasons, find a public place to meet all potential buyers. Don't me potential buyers alone. Find a friend or family member to accompany you with all test drives. Keep a cell phone handy at all times for safety reasons. (Avoid keeping more than 1/4 tank of gas in the vehicle to avoid the potential of long test drives.)
• Allow the vehicle being sold to be inspected by the potential buyer (s) mechanic.  Always make arrangements to personally drive the vehicle to the agreed upon mechanic or service facility.
• Provide a written sales contract. Conduct the business at a reputable bank or credit union so that someone at the institution can assist in the final sales transaction? Are you able to recognized a counterfeit check, money order or cash? Also the the transfer of the title can be handled at the bank or credit union, too.

By following the aforementioned tips, this should help those willing to take the do-it-yourself route steer clear of trouble. If all else fails, one could always opt to donate the vehicle to a charity, taking a sizable write-off on their taxes next year!