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Private auto sales zoom onto the Web
By • Bankrate.com
The Internet is a great way for private car buyers
and sellers to track each other down.
If you can buy a car from a neighbor or sell
a car to a friend, by all means do so. But when a private auto sale
comes down to buying from or selling to a stranger, your best bet
is to hop online. It beats driving around town with a "for sale"
sign in your car window or putting an ad in the local newspaper.
"If you're a buyer, you've got the best selection.
If you're selling it's a cheap, effective way to reach the most
sellers," says Chip Perry, chief executive officer of AutoTrader.com.
AutoTrader.com has listings for 1.5 million
used vehicles, with about 250,000 vehicles from private sellers.
Other sites listing used cars for sale from dealers as well as private
sellers include Autoweb.com,
Cars.com and
StoneAge.com.
Private auto sales are a great way for consumers
to buy or sell a used car, truck or sports utility vehicle. It's
good for the buyer because the price tends to be lower than
what a dealer would charge for the car. It's good for a seller because
the price tends to be higher than what a dealer would pay
for the car.
Rapid results
Online sites help buyers and sellers find each
other in a hurry.
"We've had messages back from people who sold
their cars in one day," Perry says.
One used car seller listed his car on AutoTrader.com
and in a local newspaper. The car was sold with the help of the
AutoTrader.com ad before the newspaper ad had a chance to
run.
It's no wonder that consumer experts urge folks
who are selling or shopping for a used car to check out online classified
sites.
"I think it's the way to go," says J.C. Pierce,
director of the Consumer Task Force for Automotive Issues. "If you
want a red Camaro, you can narrow the search down to a red Camaro
and there you go. You can look at hundreds of listings that you
won't see in a newspaper ... I can't think of any cons."
| Four major classified ad
sites |
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Most online sites charge about $20 for a classified
ad that includes a photo of the car. This chart from Bankrate.com
breaks down the pricing of four major sites.
At StoneAge.com an ad will run until a car is
sold. Ads on Autoweb.com run for 30 days. Ads on Cars.com run for
14 days. Changes and extensions are free. At AutoTrader.com all
ads run for one month. A basic listing is free, and a listing with
a photo is $15.
Even if you don't find the car you want from
an online listing, surfing around a few auto sites will give you
a good sense of what kinds of vehicles are available in your area
and at what price.
"It gives you the sense of the range of prices
in the local market," Perry says. "It's very important to have multiple
alternatives when you're negotiating for anything."
It's not surprising that more than one-third
of all used car shoppers hop on to the Internet, according to study
by J.D. Power and Associates, a marketing information firm based
in Agoura Hills, Calif. Quite a few car shoppers find the used vehicle
they want online.
"Currently, 4 percent of all late-model used-vehicle
buyers find their vehicle through the Internet," says Chris Denove,
a partner at J.D. Power. "While this number may seem small, the
percentage is growing fast and is likely to surpass newspaper classifieds
within four years."
Details can sell your
car
What should you put in an online auto ad? As many details as
possible.
"If you've got 50 words to use, try to use it
up," Pierce advises. "You have the opportunity to make it pop out
and you should."
If you bought the car new and have taken good
care of it, say so. Using phrases such as "original owner," "kept
in garage" and "service records available" will help your ad stand
out. It's also a good idea to include a photo of the actual car
whenever possible. Let potential buyers see the real deal.
Another important phrase to include in an online
ad is "no dealers."
"A lot of dealers are surfing the Web, trying
to buy a car cheap so they can turn around and sell it," Pierce
says.
The last thing most private sellers want is
to end up haggling with a professional salesman over price. Lots
of people dread the whole negotiating aspect of private auto sales.
Using an online auto ad can help because much of the back and forth
between buyer and seller can be done via e-mail.
"It takes the pressure off," Pierce says. "It's
easier to negotiate without having to look the other guy in the
eye. It's easier to say 'no' online."
Of course, you'll need to seal the deal in person.
When it comes to face-to-face negotiations, information is power.
Buyers should come armed with questions. Sellers should come armed
with maintenance and service records.
"I can tell you I just put in new brakes six
months ago, but if I have the records I can show you," Pierce says.
"So it's definitely important."
It's also important to take the vehicle for
a test drive to see how it runs. Many consumer experts also recommend
taking the car to an independent mechanic.
"Take it to a good mechanic for an exhaustive
check on the car," says Jack Gillis, author of The Car Book.
"That investment of $60 to $70 is really a warranty."
Online auctions are another way to find or sell
used cars over the Internet. Yahoo!, eBay
and Autobytel.com
are among the sites that auction autos.
Consumer experts advise caution when buying
or selling anything online. It's no surprise that they have severe
reservations about buying a car through an online auction.
Buying a car without driving it is a big no-no,
let alone buying a car without actually seeing it.
Chris Donlay, a spokesman for eBay, says it
may be possible for a potential buyer to test drive a car before
making a bid.
"It's completely up to the buyer and seller,"
Donlay says.
There's also the option of escrow. With escrow,
a third party holds the money until the buyer has taken a look at
the car and deems that everything is OK and matches the description
from the seller. Through an arrangement with escrow.com,
eBay customers pay a maximum fee of $100.
Listings on auction sites are much more detailed
than typical classified ads. An eBay listing for a 1996 Honda Accord
had 16 photos, including a shot of the odometer and a close-up of
a slight stain on the trunk of the car. Some sellers include photos
of a vehicle's engine as well as service and inspection records.
"It's a $25 flat fee for a listing. You can
put up as much as you want," Donlay says.
Many auction sites have links to sites such
as CarFax that
let buyers check out a car's history by its vehicle identification
number. You can find out if the odometer has been rolled back and
if a car has been junked or salvaged.
Lots of people prefer to bid on cars in their
local area since the burden of delivering the car often falls on
the buyer. Rather than pay for cross-country shipping costs, some
long-distance buyers fly out and pick up the car themselves.
"For some people, they'll always want to kick
the tires and they'll never buy a car online," Donlay says. "But
frankly, we're finding a lot of people who want to.
"If physically visiting the car is not important
to you, you can do it all online."
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