If selling a car on your own doesn’t sound too appealing, there are businesses that specialize in these types of transactions. Michael Bor is the Founder and CEO of CarLotz, a for-sale-by-owner consignment service for used cars. Bor’s firm will essentially do all of the dirty work for you, as they shield you (the seller) from the buyer. You don’t have to get involved with negotiations and CarLotz will take care of all the administrative work (DMV paperwork, warranty, etc.), for a fee of course.
"The problem many consumers face in the private market is discomfort with the hassles and the potential danger associated with this type of transaction. That's where a business like CarLotz adds value. We enable consumers seeking a private market value to sell their vehicle without having to deal with the hassles traditionally associated with the private market. We're a consignment store for cars,” says Bor.
CarLotz takes a reasonable fee from the transaction that, depending on the car, can still leave a lot of profit on the table: $199 for the mechanic check, cleaning of the car and for taking photos to be posted on websites. If the car sells, they’ll take another $599. Ultimately, for $800, you don’t have to deal with the headaches of selling a car.
Determine the value of your car
To see what your car is valued at, visit KBB.com - compare this value with what the amount the leasing company wants for your leased car.
According to Bor, the type of car is not a big factor in whether or not you’ll be able to turn a profit, although he says fuel efficient vehicles do better due to high gas prices going on right now and large demand for hybrids and cars with good gas mileage. He says most people will have between $2,000 and $5,000 worth of value built up in their leases.
Additionally, if you’ve exceeded the mileage limit on your car lease, chances are good that you'll owe money to the leasing company – yet another reason to try and buy your leased car back from them and sell it for a profit to help pay the mileage fees.
-Scott Gamm is the founder of the personal finance website HelpSaveMyDollars.com. He has appeared on NBC’s TODAY, MSNBC, Fox Business Network, Fox News, ABC News and CBS. Follow Scott on Facebook and Twitter.
Besides the fine print of your lease agreement, there are plenty of ways to lose money on a car transaction. Be sure to check MainStreet's look at 7 Things Car Dealers Want You to Buy to make sure you're covered!