These days vehicles have become an integral part of our life. Their ownership represents personal freedom which is much more than convenient and enjoyable rides.
However, the sad but true fact is that all automobiles start aging after offering a period of faithful service. There are a number of reasons that can make your vehicle wear out over time. Whatever they are, selling a used car is not a simple task. It can be a very unpleasant experience for sellers or dealers looking to sell severely thrashed wheels
Here are some standard rules that you must follow to make the process of selling a used car less troublesome.
Display and signage
While selling a pre-owned automobile, it is essential to use signs to inform the following details to buyers:
- whether there is no cooling-off period (if you are selling on consignment or through auction).
- whether the sale is covered by a statutory warranty or not.
Use single sign
For vehicles without warranty or cooling-off period, you may use one sign for your whole premises. Provided, you sell automobiles only on those business places. You must also ensure that your sign details are applicable to all automobiles without exception. Also, make sure to:
- Use 10cm tall letters.
- Put the sign at the main entrance of your business premises.
- Keep it readable, easily visible and clear.
If there is any information that differ for two automobiles on the same business place, you should use individual signs on each automobile. Make sure to inform the prospective buyers if the car has:
- No cooling-off period.
- No statutory warranty.
- or both of the above.
The individual sign must indicate a particular automobile. You can write it on the windscreen, attach it to car or put it next to the car.
If you use any of the above options, you must:
- use letters of 5 cm height for the details on sign.
- Make it easily visible, readable and clear.
- Write it near the car’s price.
For cars with common details (like some statutory warranty but no cooling-off period) you can use a single sign. But if the information differs, you must also use individual signs.
Before you sign a purchase contract
When your final a deal with the buyer and sign the contract of sale, make sure to do the following:
Give a receipt of deposit to purchaser
When you get paid by the customer, give them a receipt immediately. If you sell the car through consignment, make sure to do the following:
- Transfer the deposit in your trust account.
- Give a trust account receipt to customer.
Statutory warranty and cooling-period
Usually, you must offer a statutory warranty and a cooling-off period to customer. The cooling-off period must be offered for one business day. Before signing the contract you should complete an approval form. i.e. Cooling-off period and statutory warranty (motor dealer or chattel auctioneer to buyer) form. You must share its one copy with purchaser. If you ignore it, you may be charged with penalty. And, the buyer is also free to ignore the contract (within a week.).
When your car is written-off
If you have a vehicle that is stated as written-off or not-registered, you must inform the buyer. Likewise, you should tell the customer if the car is legally write-off or fixable. As it indicates that automobile cannot be registered. You must also prepare a notice indicating your vehicle is totalled. Make sure to get it signed by the purchaser. After which you should keep its one copy and give another copy to purchaser.
Prepare a written contract
You must create a contract of sale or purchase contract in writing. It must have your as well as buyer’s signature. Make sure to give a copy of purcashe contract to all customers. Once all the parties involved in the sale put their signatures on contract, it becomes legal. This means you are bound by the contract. When the period of cooling-off completes the buyer is obligated to it.
Give a signed statement
You must provide the information regarding the previous owner of the car. Make sure to mention it’s details in the contract. It must include the following information:
- The name of recent previous owner of the automobile (this means your name, unless you are selling the car via consignment).
- the existing date.
- manufacture date of vehicle.
- the chassis number (for a caravan) or engine number (for any other vehicle).
- its number of identification.
- the amount of money the buyer is paying.
- its odometer reading (in figures as well as words).
You must also mention other necessary details like:
- If you have ever replaced the odometer.
- If you have a replaced engine (also mention its date).
Have a clear title of ownership
Make sure to have the clear title of your car in order to assure your buyers. You should mention it as a declaration in the contract of sale. It indicates that the seller has the clear ownership of automobile (unless it is being sold via consignment). This means the seller don’t owe any debt, mortgage or security on the automobile.
Don’t forget to get a receipt of payment
Whenever you finalize a deal and receive payment from buyer make sure to get a receipt. If you agree to sell your car through consignment, you must have a trust account. You should deposit the money in it and give a trust account receipt to your customer. Make sure to include the following details on the receipt:
- the name of customer.
- your name and signature.
- the name of your principal licensee.
- the total sale price of automobile.
- the total cost of transaction.
Additionally, the trust account receipt must clearly show the following information of automobile:
- Make, model and colour of automobile.
- Vehicle’s registration and identification number.
- Chassis number if you are selling a caravan or engine number if you are selling any vehicle.
When trading in a vehicle
Make sure to get a written and signed statement from the customer to safely complete the trade-in process. The declaration must include the buyer’s essential details and information regarding their traded-in automobiles. If you want, you can also add these details in the contract for sale of car.
Maintain a register for transactions
It is necessary to maintain a register for transactions at your office. You must enter the details of every transaction in the register timely. Typically, you must enter information within 24 hours of completing the transaction.
Say hello to Perth Auto Wreckers who provided these great tips to share here.