Quarantine life is a strange life.  What once may have been unthinkable becomes increasingly customary.  No, I’m not talking about growing a garden, hoarding toilet paper, getting tipsy during a work-sponsored virtual happy hours, or throwing a party with the intention of trying to catch the virus; this is a finance blog (that last one is a bad health and financial decision, but that’s a topic for another day)!  I’m talking about harnessing your inner Centsei with a dash of Marie Kondo and cleaning out your dojo by selling things in your life that no longer bring you joy.

For me, this valuable was my 2011 Mazda 3, as seen above, and unfortunately my wallet had to take a hit before I got the motivation to act. 

Lady Centsei and I have owned two cars for the entirety of our relationship, as seemed to be the norm for people like us living in the suburbs.  In fact, two cars in a single household is below average for the United States, and over a third of households own three or more.

However, we’ve both been working from home and will do so indefinitely during the quarantine.  As a result, our car usage has dropped by 90%.  We maybe leave the house once or twice per week, often together.  There has not been a single time since March when we would have both needed a car for separate destinations at the same time.  Even when we begin going to the office again, it’s only a 5-minute detour each way for me to pick her up or drop her off.  Two cars might not have been necessary before, and they certainly aren’t necessary now.

You might initially think that having a paid for car sitting in the driveway no using gas doesn’t cost anything.  Unfortunately, cars cost a great deal of money whether you drive them or not.

Since the beginning of the year, I’ve bought new tires, got an inspection, paid the registration fee and excise tax, replaced the battery, purchased insurance, and re-done the rusting breaks on a 10-year-old basic model car that I’ve driven just a few times.  Total cost?  Well over $2000, not including gas, any car payments, or depreciation (the fact that the car becomes less valuable over time).  Nerd

Ouch.

The car has some sentimental value to me, of course.  It was the first car that I purchased with my own money, and it carried many stories of my young adult life.  Nonetheless, this sentiment was not worth $300 or more per month for an object that I wasn’t using and could someday replace.  It was time to sell the old Mazda.

I’d never sold a car privately before.  There are many options ranging from a private sale, a quick buying service like CarMax, or a car dealership.  A private sale will almost always be the best deal for both the seller and the buyer if done properly.  A service like CarMax might be “easier” or “less scary” but you will lose hundreds or even thousands of dollars on your trade-in by using a middleman.  And do I even need to get into the problems with involving a car dealership?  Didn’t think so.

Many people might think a private sale is sketchy or troublesome, but that wasn’t my experience at all.  Despite never having sold a car before, I sold mine on Craigslist in 5 days with less than 2 hours of work total for the full Kelly Blue Book value.  No joke.  Here’s how I did it:

(1) Locate The Title And Make Sure It’s “Clean”

A title is the legal document stating the car’s ownership.  If you lease the car or still have an outstanding loan on it, you won’t be in possession of the title and won’t legally be able to sell it.  Before selling your car, locate the title, and verify that it’s in your name.  You’ll also want to make sure that the title is “clean,” which just means that the car has never been declared a total loss by an insurance company.  If you can’t find your title but are sure you own the vehicle outright, you may need to order a new one from your local DMV for a fee.

(2) Fix Any Major Malfunctions

You’ll want to ensure all critical functions in your car are in working order, such as the engine, breaks, electrical, exhaust, steering, and mirrors.  If the car wouldn’t pass inspection, you’re going to have a very difficult time selling it, and it’s worth your time and money to get the important stuff fixed.  That said, you generally don’t need to fix cosmetic flaws, since those generally cost more to fix than the added resell value you’d get by fixing them.  For example, if the car has dings and scratches, you could easily spend a thousand dollars or more at a body shop but add only a few hundred to the car’s value.  The seller doesn’t expect cosmetic perfection, so don’t waste list of money.

(3) Clean The Car Thoroughly

One area where you do want to spend a little time and a few bucks, however, is in cleaning the car.  Take it through the car wash, vacuum the interior, and wash all the hard-to-reach areas like the inside door panels and dash with a cloth.  Spending $10 on a car wash and 30 minutes of labor will make the car substantially more attractive to buyers, potentially adding to your asking price or quickening the sale.

(4) Set A Fair Price

Set emotions aside and set the price based on what your car is actually worth.  No more, no less.  Use a site like Kelly Blue Book to get and approximation, and be honest about the car’s mileage and condition.  KBB said “good” condition my car was worth $4,600 – $5,400, so I asked for $4,950 despite having just spent $700 on brakes and a batter.  Expect to negotiate down by 5-10%.  Don’t hold out forever waiting for someone to overpay; it’s not going to happen.  Remember: Each month you fail to sell it will cost you hundreds.

(5) Take At Least Ten High-Quality Pictures

Front, back, both side, front seats, back seats, trunk interior, dash, radio/panel, and any luxury aspects that make your car stand out.  Use photo software to block out your license plate number.

(6) Gather Maintenance Records

A buyer may ask for these and you should have them in a single place ready to present.  Be thorough in your explanations of exactly how often you completed routine items like oil changes and tune-ups, and be prepared to give specific dates on when you last perform major repairs like brakes, tires, timing belts, transmission, battery, alternator, and so forth.  Make a cheat sheet.  Don’t lie or exaggerate.

(7) Create A Craigslist Account

Signing up for Craigslist takes two minutes and a minimal amount of personal information.  Here is a quick guide on the basic functions like making, editing, deleting, and renewing a post.

(8) Craft Your Craigslist Ad With Excellent Detail

Let your creative and artistic side shine by creating a post (advertisement) that makes your car stand out.  Highlight the attractive features but be upfront about any defects that a seller would want to know about. 

Do post the year, make, and model in your title.  Do include your photos, asking price, car type, mileage, a broad description of where you would like to meet up, and how you would like to be paid.

Don’t post your phone number or street address in the ad (Craigslist has an option for them to contact you through a message that goes to your e-mail address without the need to display your personal info online).

Here’s the actual ad I used, with maps and a few personal details removed:

(9) Submit The Ad

Double check your work and submit the ad.  Craigslist charges a $5 fee for an automotive ad that lasts for 30 days.  It’s worth it and is a much better deal than a newspaper or other websites.  Consider lowering the price if you don’t get many hits for a week.  You can repost the ad after 30 days if it isn’t sold.

*Note that Craigslist may not be the best option in your area.   Autotrader (affiliated with Kelley Blue Book) and eBay Motors are alternatives that might work out a bit better, though they can be more expensive and require more effort.  I haven’t used either so can’t say either way.

(10) Post A “For Sale” Sign

Setting your car up with a For Sale sign is another way to market your car with little time or upfront cost.  Buy a professional-looking sign for a few dollars on Amazon and maybe you’ll get some interest, especially if the car can be parked on a street with decent traffic.

(11) Respond To Questions Quickly And Honestly

Buyers will likely have some questions about your car, so respond to them promptly to show you are serious. 

If the seller asks for the VIN or more questions than you want to answer over e-mail, encourage them to meet up in person so they can see for themselves.  A willingness to meet in person also helps ensure they are not wasting your time.  Feel free to ask questions of your own, such as whether the buyer is local and when they were planning on making the purchase.  The onus is on the seller, not you, to order a Carfax report if they are interested.

Please be on the lookout for fraudsters at this point. 

— Only deal with people willing to meet locally and face-to-face. 

— Don’t give out personal information beyond your first name to someone you don’t know. 

— Be on the lookout for someone with an offer that is too good to be true (ex. twice your asking price). 

— Under no circumstances should you offer to ship the car or try to conduct payment with someone you have not met in person!

(12) Meet With Prospective Buyers For A Test Drive

Offer to meet up with the buyer during the day in a well-lit public place that is convenient for both of you and could be witnessed by others.  If you’re not comfortable alone, bring a friend with you and offer that the buyer bring a friend too.  Don’t be outnumbered.  Take any valuables out of the car in advance. 

When it comes to a test drive, the first step is to exchange pictures of licenses, quickly checking to make sure that the person is who they say they are and are legally allowed to drive.  Only allow one driver at a time, and enter the car with them if you feel comfortable doing so.  Limit the amount of time they can drive the car.  Agree on next steps and timeframe if the sale won’t be finalized that day.

From a safety perspective, think of it like a first date.  Always make sure a loved one knows where you will be.  Turn on your geolocation option on your phone, like FindMyPhone for Apple, so you are easily found.  Always conduct business in broad daylight in a safe area.  Trust your gut – if you sense the buyer is up to no good, take your keys and leave without giving it a second thought.

(13) Print And Sign A Purchase And Sale Agreement

A purchase and sale agreement isn’t required in all jurisdictions, but I recommend printing one out in advance and requiring that it be signed to formalize the purchase.  Here’s a quality sample that I used for mine that works in my state, but find one that works for you.  It doesn’t need to be fancy; just include the date, purchase price, the statement of purchase (“The seller grants, sells, conveys, transfers and delivers to buyer the following to the buyer… [followed by vehicle description],” details of the car including VIN, and the signatures of the buyer and seller .  You can get this notarized at your local UPS store, though it’s not legally required to make the sale valid.

(14) Secure The Payment

This part can be a little awkward, so it’s important that you protect your interests.

— If the seller offers you cash, come prepared with a pen to confirm whether its counterfeit and maybe a little cash of your own to try to detect it.  Cash transactions are harder for both parties to prove, but that isn’t a reason not to accept it.

— If the seller offers you a personal check, offer to go to the seller’s bank to cash it right away.  This is the best option for most people and protects you both.  If the seller’s bank is out of town, I’d recommend waiting until the check clears before handing over the keys and title.  You want to protect yourself from a bouncing check.

— If the seller offers you a cashier’s check, again offer to go to the seller’s bank to cash it.  The bank will let you verify that the cashier’s check is legitimate.

— If the seller offers you Venmo or another app, be warned that the transfer could take a day or two to finalize, so this may affect when you feel comfortable parting with the car.

— If the seller offers you Western Union, RUN AWAY!

Regardless of payment type, you’ll want to confirm that the payment is coming from the person actually buying the car.  If the name on the check or payment method is different or if something else feels fishy, do not proceed.  The seller could be trying to pay using someone else’s money.

Deposit your payment as soon as possible.

(15) Prepare the Title for Transfer.

The exact procedure for transferring or “signing over” the title vary by jurisdiction.  Complete the “seller” portion of the title on the reverse side, and only sign when your payment has been received, not before.  Once again, make sure the “buyer” portion matches the license and payment details of the person you’re doing business with.

If you’re uncomfortable with doing this on your own, your local Motor Vehicle Registry (also called DMV, RMV, etc) can assist with this.

Remember, once the title is signed, the buyer now legally owns the car.  You don’t want this to fall into the wrong hands.  Make sure everything is in order, and wave goodbye to your old car!

(16) Inform the Appropriate Motor Vehicle Registry And/Or State Authorities.

Go to the Motor Vehicle Registry or visit their website if your jurisdiction allows.  Check with them to see the exact steps required on your end.  Generally, you will report the sale to them and confirm that you no longer own the vehicle in question.  You may need the VIN, registration number, and your license number.  Check with your local motor vehicle registry or secretary of state to learn what’s required of buyers and sellers in your area.  You may need to inform more than one government entity, such as your state’s RMV as well as you local town/city government, so double check.

You may also qualify to get some of your registration or excise tax money back.  Check the rules!

(19) Notify Your Insurance Carrier

Don’t forget this last critical step, since you certainly don’t want to insure a car that you don’t own!  Call or go online to remove the car from your insurance.  You may need to cite the reason (“sold the vehicle”) but more carriers make this painless and should rebate you a portion of your premium if you paid in advance.  Lady Centsei saved $500 per year by going from two cars to one… and no, this is not even a GEICO commercial!

(20*) Remove The Craigslist Ad

You don’t want people e-mailing you about a car that isn’t yours, and you don’t want to waste anyone’s time.

Truth be told, I spent more time writing this article that I did selling my car start to finish.  20 minutes taking it to and from the shop for repairs, 20 minutes cleaning it, 20 minutes taking pictures and authoring the post, and maybe just over 60 minutes dealing with the buyer.  I got my asking price for the car, saved hundreds on my insurance, and expect a refund on my registration and excise tax any day.  No more repairs, no more gas, no more shoveling out snow, no more fees and taxes.  The feeling is liberating, and I really do recommend this process to anyone looking to sell vehicle – or almost any possession for that matter – on Craigslist. 

If Weird Al can do it, so can you!