Leslie Massey
Flipping cars for profit in Australia has become increasingly difficult, with only a few models retaining a higher worth than their recommended retail price (RRP) if sold between two and four years after purchase. When selling a car, it is important to be aware of the market price and the demand for the vehicle. Additionally, the timing and location of the sale can impact the price and demand for the vehicle. Online platforms such as Gumtree, eBay, CarsGuide, and AutoTrader are popular choices for listing vehicles for sale, with some platforms offering additional services such as valuation estimates and advertising packages. It is also important to consider the presentation of the car, its service history, and the terms of the sale, including any remaining loans or finance.
| Characteristics | Values |
|---|---|
| Time of sale | April to July is the worst time to sell in Sydney, Perth, and Melbourne. Avoid selling in Darwin and Cairns between December and June. |
| Target market | Backpackers are price-sensitive and prefer upfront payment with little fuss. They value a car that has already been used to travel across Australia. |
| Registration | Ensure at least 3 months of registration (rego) is left on the car. |
| Competition | Research what others are charging for similar vehicles. |
| Price | Be realistic about the price. Just because you spent a certain amount on the car and its servicing doesn't mean you can recoup those costs. |
| Advertising | Use sites like Gumtree, eBay, Backpacker Cars, and Carsales to list your car. |
| Ad content | Make your ad as comprehensive as possible. Detail any mechanical work done on the car. Include good-quality photos. |
| Presentation | Get your car serviced and cleaned before sale. |
| Paperwork | Keep service record paperwork on hand. Be honest about the finance situation. |
| Test drives | Ensure your insurance policy covers prospective buyers taking a test drive. |
| Receipt | Make a receipt for any money that changes hands. Write 'Sold as is, where is' on the receipt. |
| Scams | Use a platform that verifies buyer and seller IDs to avoid scams. |
| Payment | Get paid directly to your bank. |
| Safety | Cancel any insurance and roadside assistance plans. |
| Legal | If you are consistently making a profit by selling cars, you will need to apply for a motor dealer licence. |
| Best cars for resale value | Suzuki Jimny, Toyota Corolla Cross, Land Rover Defender, Toyota Yaris Cross, and Toyota LandCruiser. |
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What You'll Learn
Know the best time to sell
Australia's diverse climate impacts its car-buying behaviour. The weather can determine when certain types of vehicles are popular and the average time it takes to sell these types of cars.
For example, the summer season is a popular time for convertibles, especially in coastal areas. Summer is also a favoured time for vehicles with air conditioning, seat coolers, and sunroofs. If you're selling a car with these features, you might find that summer is the best time to sell.
Additionally, areas with harsh weather conditions, such as bushfires, floods, and tropical cyclones, often favour reliable and well-made vehicles. Cars like 4WDs and utes are often in high demand in these areas in the lead-up to summer or the wet season. If you're selling this type of vehicle, consider listing it just before these seasons begin.
It's also worth noting that the end of the month can be a good time to sell, as dealers may be pushing to achieve sales targets or volumes that will earn them bonuses from manufacturers. Similarly, the end of the financial year in June is when new-car sales peak, driven by brands and dealers keen to hit targets and boost sales figures.
However, if you're selling to backpackers, be aware that April to July is usually a quiet time in Sydney, Perth, and Melbourne, and December to June is the wet season in Darwin and Cairns, so these may not be the best times to sell.
Finally, consider the model of your car and how long it has been on the market. If a new or updated version is likely to arrive soon, you may be able to negotiate a better deal.
By taking into account these factors, you can increase your chances of a successful sale and potentially get a higher price for your vehicle.
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Choose the right platform
There are several online platforms available to sell your car in Australia. Carsales is Australia's biggest automotive marketplace and is the home of private car sales. It offers three different ad packages, each with its own features, and it will cost you anywhere between $94 to $239 depending on the type of ad you choose to run. Carsales also offers an Instant Offer feature, which is a faster and easier way to sell your car. After accepting your online quote, an official dealer will contact you to carry out an inspection, finalise the details, complete the paperwork, and make the payment.
Other online platforms include Gumtree, Facebook Marketplace, and Carsguide. Gumtree is a good alternative to Carsales, and it is completely free to list on. However, there are likely to be fewer serious buyers on this platform. Facebook Marketplace is also free to list on, but you may experience similar issues with buyer quality as with Gumtree. Carsguide is now part of the Gumtree Group, so you can list your car on there as well.
If you want to avoid online platforms altogether, you can opt for local advertising. This includes placing adverts in local papers, pubs, and shops. This option will likely generate some prospective buyers, but the reach is more limited than that of an online ad.
Additionally, there are other online vehicle sales sites that you can consider, such as Carma, Online Auto, and Private Fleet. These sites have received positive reviews from Australian consumers for their efficiency, seamless processes, and competitive prices.
It is important to note that selling your car privately can be a lengthy and frustrating process, requiring more administrative work and effort than selling to a dealer. However, it can also be a rewarding experience that allows you to maximise your return if you are well-prepared and organised.
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Prepare your car
Before putting your car up for sale, there are a few things you should do to prepare it and make it more appealing to potential buyers. Firstly, give your car a thorough clean, both inside and out. Consider getting it professionally detailed to make it look as presentable as possible. This is a simple and effective way to increase the resale value of your car.
Secondly, it is recommended to have your car serviced before selling it. This will ensure that it is in good working order and may provide potential buyers with peace of mind. Keep any service records or paperwork, as this can be shown to buyers as evidence of the car's maintenance history. If there are any minor repairs or issues that need to be addressed, it is worth getting those fixed beforehand.
When creating your listing, be sure to include detailed information about any mechanical work that has been done on the car, whether by yourself or previous owners. This transparency will make your listing more appealing to buyers and demonstrate that the car has been well-maintained. Additionally, be honest about the finance situation of the car in the ad's comments section to avoid any misunderstandings with buyers.
In some states in Australia, such as Victoria and Queensland, you may be required to provide a roadworthy certificate or a 'Safety Certificate' to the buyer. Check the local requirements to ensure you have the necessary documentation.
Lastly, consider the timing of your sale. Avoid selling during quieter times of the year, such as April to July in Sydney, Perth, and Melbourne, or December to June in Darwin and Cairns. These periods may result in less interest and could impact the price you can achieve.
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Price it right
Pricing a car right is crucial to selling it successfully and making money in Australia. Here are some tips to help you set the right price:
Research the Market
Before setting a price, it's essential to understand the market value of your car. Research similar cars for sale to determine a competitive price. Websites like Gumtree, eBay, and CarsGuide offer listings that can give you an idea of the price range for your vehicle type and model. Additionally, consider using online valuation tools provided by websites like Sell My Car to get a free estimate of your car's worth.
Consider the Timing
The time of year can impact the demand for cars in Australia. For example, April to July is generally quieter in cities like Sydney, Perth, and Melbourne, while December to June is the wet season in Darwin and Cairns, affecting sales. Avoid selling during these periods if possible, as demand may be lower, and you might have to settle for a lower price.
Be Realistic
When setting the price, it's essential to be realistic and understand that you may not get the same price you initially paid for the car. Backpackers, for instance, are price-sensitive and won't pay way above the market rate. Consider factors such as the age and condition of the car, any necessary repairs, and the current demand for that particular model.
Factor in Registration and Insurance
Ensure your car has at least three months of registration left. A registration that is about to run out may deter potential buyers due to the extra costs involved. Additionally, be transparent about the finance situation in your ad to avoid misunderstandings. Many buyers will expect to make a split payment to cover the outstanding loan amount and any remaining balance to you.
Include Extras
If you're selling to backpackers, consider including extras such as tables and chairs. Backpackers often value a reliable vehicle that has already proven its worth by travelling across Australia. Additionally, include any service records and mechanical work details to showcase the car's maintenance history.
Be Prepared to Negotiate
Understand that buyers may negotiate the price. If you receive a low offer, respectfully explain your reasoning for not accepting it and provide your lowest acceptable price. Be clear about the terms of the sale and put everything in writing, including a receipt detailing the money exchanged and the conditions of the sale.
By following these tips, you can set a competitive and attractive price for your car, increasing your chances of a successful sale and making money in the Australian market.
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Be honest about the car's condition
Being honest about the condition of your car when selling it in Australia is crucial for several reasons. Firstly, it helps you comply with Australian laws and regulations regarding used car sales. Private sellers may face legal action if they intentionally mislead buyers about the vehicle's condition. While taking legal action can be costly and time-consuming for the buyer, it is still a possibility, and being honest upfront can help you avoid such scenarios.
Secondly, honesty fosters trust and transparency in the transaction. Buyers will appreciate knowing exactly what they are getting into, and this can increase their confidence in the purchase. By disclosing any mechanical work, suspected faults, or previous repairs, you give buyers a comprehensive understanding of the vehicle's history. This allows them to make an informed decision and can even help you attract buyers who are specifically looking for a reliable vehicle with a proven track record.
Additionally, being honest about the condition of your car can save you from potential future hassles. If you sell a car without disclosing known issues, and the buyer discovers these issues later, they may try to return the vehicle or seek repairs or refunds. Being upfront about the car's condition helps set the buyer's expectations and ensures they are aware of any potential drawbacks.
Moreover, honesty can help you attract serious buyers who are genuinely interested in the vehicle. By providing detailed and accurate information, you can avoid wasting time on buyers who may lose interest once they learn about the car's condition. This allows you to streamline the selling process and focus your efforts on buyers who are truly interested in the vehicle, despite its flaws.
Finally, being honest about the condition of your car aligns with ethical selling practices. Selling a car privately does not absolve you of moral responsibility. By being transparent and honest, you demonstrate integrity and ensure that the buyer is making an informed decision. This can lead to a more positive selling experience for both parties and help you build a good reputation as a trustworthy seller.
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Frequently asked questions
You can sell your car online on websites such as Gumtree, eBay, Carsales, CarsGuide, or Autotrader. You can also sell your car to a company like Sell My Car, which offers a 3-step valuation process and guarantees fast payment.
Make sure to include as much information as possible in your listing. Detail any mechanical work done on the car, and include clear photos. It is also important to be honest about the finance situation to avoid misunderstandings with buyers.
April to July is the worst time to sell your car in Sydney, Perth, and Melbourne as these cities are very quiet during autumn and winter. The same can be said for Darwin and Cairns between December and June due to the wet season.
Look at what others are charging for similar vehicles and use this as a starting point. Be aware that backpackers are price-sensitive and will not want to pay way above market price.
Make sure your insurance policy covers prospective buyers taking a test drive. Also, be aware of the laws surrounding car flipping – if you are consistently making a profit by selling cars, you will need to apply for a motor dealer license and pay income tax.
