Tips on selling used cars in Singapore
Owning a car in Singapore has always been expensive, but now it has become even more so because all local drivers have to pay renewal fees every 5 or 10 years when their Certificate of Entitlement (COE) expires. With the recent introduction of the zero-growth vehicle policy, the accessibility of the city’s public transport system, and increasing fuel and parking expenses, it comes as no surprise that more drivers are selling their cars. While it is likely not possible to sell a vehicle at 100% of its original price, you can still squeeze some value out of your auto.
In this feature article by Kwiksure Singapore, we will provide you with some valuable tips on how to sell your used cars.
Choose the right sales channel
Generally, there are three common ways to sell an automobile: at a car dealership, via direct sale, or through car consignment, each of which has its own benefits and drawbacks. There is no single channel that is superior to the others, and making the right choice all depends on your needs and requirements.
There are a number of questions you should ask yourself before deciding on which path to pursue. Is getting a better price more important to you than selling it as soon as possible? Are you willing to earn less for a trouble-free experience? Are you comfortable haggling prices with prospective buyers?
A car dealership is the way to go if you’re looking to sell your car quickly. The dealer will do plenty of work for you, and you won’t have to put out an advertisement or handle paperwork. Besides, it can guarantee some form of payment once the agent accepts your car.
While it saves you a lot of trouble, you will sell your car for less than direct selling or car consignment. This is because the dealer usually takes a healthy cut from you (S$2,000 or more) in order to profit from the transaction.
Another point to note is that dealers would typically do a markup of about $5,000-$8,000 depending on your car model when selling it, as they need to do touch-ups or even repairs before displaying your car in the showroom.
If price is your main concern, you will be happy to know that direct selling can give you more control over the final price than the other two methods. However, it is more than just posting an online advertisement and waiting for a response. Instead, it is rather complicated and may not be suitable for those with little experience in the car market.
Firstly, you will have to handle a great deal of paperwork, from drafting a simple sales agreement and preparing indemnity forms to filing documents for transferring ownership at the Land Transport Authority.
Secondly, you will have to meet the prospective buyers by yourself. You will have to arrange any test driving, deal with negative remarks on minor flaws about your vehicle they might make to lower your selling price, and discern and identify the real, suitable buyer.
Car consignment is like getting a professional agent to promote and sell the car for you. Some agents may put your car in a showroom to gain exposure, while others may require you to bring your car for potential buyers to inspect.
Typically, although a consignment sale results in less money than direct selling (usually a flat fee of around S$500 or 1% of the sale price), it is still cheaper than using the service of a dealer. However, you have to pick your agent carefully since an amateurish agent may end up wasting your time and efforts.
On the upside, you get a mix of advantages from both direct selling and selling to a car dealership. While you still have the final say on the preferred selling price of your automobile, you can skip all the hassle of the paperwork, and focus on looking for the right buyer. Besides, they may also offer you advice on current market conditions, and a proper price assessment of your car to foster the sales process.
One final point to note is that, unlike a car dealership, which may touch up your motor to entice potential buyers, in a consignment sale your car will only be advertised and sold in its current condition.
How to evaluate your car’s value?
It is crucial for you to do your homework and assess your car’s proper value before deciding on the sale price. Nowadays, you can find a lot of online valuation tools for free. They may require you to fill in details such as mileage, registration year, and model to give you a preliminary valuation.
If you are getting a quote over the phone, you should provide as much useful information as possible so that the quotation price will be as accurate as possible. For example, let them know if there are any defects or scratches from previous accidents.
Finally, you should use these valuation prices for reference only, since the real value will depend on the actual condition of your car.
How to get the top price for your car?
While long-term wear and tear is unavoidable, having a comprehensive insurance policy can safeguard your car from the risks of potential car damage, fire, and theft, so that you can keep your car in the best shape possible.
As a leading car insurance broker, Kwiksure Singapore has always endeavored to assist our clients in finding the right insurance plans to meet their requirements. Our team of specialists knows the ins and outs of different products, and is ready to offer you impartial advice. Contact us today for any insurance-related questions, as well as to get a free quote and plan comparison!