How To Sell A Car Using An Installment Contract
Many people choose to sell their old cars and then invest the money in the purchase of a new vehicle. There are options available for a car seller: he can choose to sell the car to a dealer, sell it online or sell it privately. Considering that the last option is most likely going to bring a maximum profit to the seller, most people opt for it. With the right advertising, it’s not that hard to find a buyer especially if you show a little flexibility regarding the method of payment. Some buyers will be able to pay cash or by check while others may be more interested in an installment contract. So, if you want to sell the car for the best offer you should familiarize yourself with the process of selling a car by using an installment contract.
Considering that you are selling a car, no matter the method of payment, you will still have to find out the car’s market value, advertise it properly and make sure you prepare it for a buyer review. It’s important to take the time and complete each one of these steps, because by not setting a fair price for the car it might prove difficult to sell it or if you under price it you will make a poor deal. The first source of information you should use is the Kelley Blue Book, because it contains price tags for every make and model on the market.
The prices are even different depending on the car’s condition and on the type of sale you are interested in. After you make sure you have the right price to specify in an ad you should think of all the possibilities to advertise the car. You shouldn’t forget about the local newspaper, bulletin boards and of course about online websites. You can even consider those that require you to pay a fee in order to list the car. Don’t forget to mention in the ad the most important details about the car: the make, the model, the year of manufacture, the extra options it offers, the price and any other piece of information you consider relevant. Don’t forget about the contact details either.
For a successful sale, you should also wash the car and clean its inside. Once you find a buyer willing to buy the car you should negotiate a price you are comfortable with and think about the method of payment. If the buyer shows interest in an installment contract and you agree with the idea you should start with a draft of the contract. This contract needs to include the names of both parties involved in the transaction, the price you agreed upon and details about the number of installments and their value. Also important is to include a clause which should stipulate that in case the buyer fails to pays one of his installments you reserve the right of getting back the car. You should make two copies of the contract: one for the buyer and one for yourself. If the buyer agrees will all the terms, he will be happy to sign the agreement and make it official in front of witnesses.
Even if you are selling the car using an installment plan, you will still have to fill a bill of sale. That should happen only after you receive all the installments. Only then you will have to fill the car title’s back and specify it was an “as-is” sale. You can now transfer the ownership to the buyer. Don’t forget to cancel the insurance and the registration!