# selling a car to a friend - should I do it?



## the-royal-mail (Dec 11, 2009)

As the title implies, I have been thinking of trading in my car for something a little better suited to winter driving. I had a lot of trouble with this one last winter even though I had studded snow tires. RWD and not enough weight in the trunk + low clearance of the model on poorly cleaned streets and driveways was a real challenge. I have not yet fully decided if I will do this or simply buy some boxes of kitty litter for the trunk.

What are your opinions on selling a car (there is nothing wrong with it besides what I mentioned above) privately to a friend. Should I do it or is this one of those things that is not recommended?


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## Toronto.gal (Jan 8, 2010)

If your friend drives in the winter too, then no, don't sell to such a friend. 

I would not sell a car to a friend, unless someone insisted if they knew I was selling.


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## brad (May 22, 2009)

The one time I sold a car to a friend, I felt bad about it because he talked me down to much less than I wanted, and he felt bad about it because the car didn't last very long. It made our friendship uncomfortable after that.


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## HaroldCrump (Jun 10, 2009)

TRM, I personally wouldn't sell a car to a friend, or buy from either.
It depends on the personalities involved and the nature/depth of relationship.
For instance, a couple of months after you sold, let's say the transmission dies.
Would your friend secretly hold you responsible?
Would you feel like crap, even if he/she said nothing?

At the same time, if this car has caught his/her fancy and he/she insists you sell it to them and you don't, that may hurt the relationship, too.
Tough call for strangers like us to make.


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## travelgeek (Nov 29, 2009)

I would not do it. Cars are very unpredictable, there might be problems lurking which you aren't aware about. One of my friends once mentioned that selling a car to a friend is almost like selling them a car with a lifetime warranty.


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## the-royal-mail (Dec 11, 2009)

Wow. You are all making some excellent points that I hadn't even thought of!

What happened was on the weekend we were hanging out and I mentioned I might get something better suited for winter, and one friend seemed to like my car and was asking about buying it "if I'm selling". I am never one to turn down a customer but in this case you all make really valid points. I did tell him WHY I want to sell and it didn't seem to bother him. He and I live in different dwelling types and he walks to work. So his winter driving needs are a bit different than mine and we both know that.

Still, it's quite a risk, that is for sure. Good friends are hard to come by. Definitely worth more than a few extra bucks in my pocket.


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## carverman (Nov 8, 2010)

Sure, nothing wrong with selling the car privately..advertise on Auto trader.

The car has to pass both an emission and mechanical inspection, and in Ont, the MOT insists on the seller giving the buyer a "lien package", which lists the owners and if any liens are registered against the vehicle.

Generally the buyer will expect some negotiation range on the vehicle just as with a dealer. The HST has to be paid either way when the vehicle is re-registered.

Dealers on used vehicles will offer a 30 day 50-50 warranty on power train parts/brakes, but not on body or tires unless they go out of tread spec within 30 days.
Even if you take them up on their warranty, they won't necessarily give you a new tire..but a used tire in good condition.

Selling to a friend..it depends on how well the vehicle is kept up, it's reliability record, and if you feel that the friend understands that with any used vehicle.... things will go wrong from time to time.

Also the friend may expect a "better deal" than if you sell it to someone else.

Unless the car has reliabilty problems starting in winter (ie: needs a new battery or some sensor that is temperature dependent, or transmission issues) and has adequate tread on all seasons, or you even offer a set of snow tires with it, it is no different than buying a used vehicle from a dealer.

The mechanical inspection/emission tests are mandatory, and that means something to the buyer. 

However, if you sell the vehicle on a "as is-where is" basis, (tow it away), because it's going to cost too much for you to repair yourself, your friendship could be strained, if the friend finds out it's going to take thousands to bring the vehicle up to good operating condition.

Under those circumstances, I would not recommend selling it privately..
just take it to the dealer and give it to them to dispose ..or call the local wreckers to tow it away...some even give tax receipts.


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## kcowan (Jul 1, 2010)

My FIL did it and it was a disaster. Car had been perfect and then suddenly had all manner of problems. He was retired so did not stress the car much. New one was a daily driver.


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## m3s (Apr 3, 2010)

I gave a car to a relative but I don't think I could sell to a friend.. Maybe if I had to sell fast for a move and I'd spent a bunch of money fixing it up. I would definitely feel I'd have to give a better deal to a friend than I would get on the street. Never sold to a friend, I don't even advertise to them when I'm selling I guess for that reason


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## financialnoob (Feb 26, 2011)

I think there are a lot of really good points raised. Personally, I probably wouldn't do it. 

At the same time, I think if he's really interested, why not have him take the car to a local mechanic you both trust and get it inspected beforehand? It's common to have cars looked at before purchasing, and that can give you both an idea of the work that may be required whether you sell or not. 

And it lets a neutral party weigh in so if something goes wrong later, he can take it up with the mechanic instead of blaming you. If there's signs of a major repair coming up, you could maybe negotiate price so it's at least covered. Or you get it done in advance and include it in the price.


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## Spidey (May 11, 2009)

I would only do it if I gave the friend an fantastic discount -- perhaps selling the car for 60% or less of market value and making it clear that you are giving him a deal. I would not sell a car to a friend at market value.


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## carverman (Nov 8, 2010)

Spidey said:


> I would only do it if I gave the friend an fantastic discount -- perhaps selling the car for 60% or less of market value and making it clear that you are giving him a deal. I would not sell a car to a friend at market value.


Well that's your perogative. 

To sell a vehicle privately in Ont at least, will cost you some money.
1. Mechanical inspection ($100)
2. Emission test ($40)
3. Lien package from MOT ($20)

That's about a $160 that you have to deduct from the final price that you sell your vehicle for.

If the "friend" insists on a secondary mechanical inspection at another garage, that could be another 
$100 it is going to cost you, if the friend decides not
to pursue buying, so add that to the cost of selling. 

Lets say, you have a 5 year old car that is still 
valued at $3000 blue book, and going around $5,000 "market price" which is highly negotiable.

40% ( *ie: 60% less*) of $5,000 is $2000..
so you are selling that vehicle to a friend for less than it's blue book value?....
that doesn't even compute in my "frugality" dictionary.

Why not just give it away for free and sign the papers at the MOT that it is a "gift"? They will then charge
the buyer the sales tax on the blue book value of the car anyway. MOT will not do anyone any favours..they want
their sales tax money.


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## Square Root (Jan 30, 2010)

Spidey said:


> I would only do it if I gave the friend an fantastic discount -- perhaps selling the car for 60% or less of market value and making it clear that you are giving him a deal. I would not sell a car to a friend at market value.


agree


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## rookie (Mar 19, 2010)

i bought a car from a good friend who was leaving the country. i paid him 1000 bucks more than what the dealer would offer him and still the price was a lot less than what was quoted online for similar cars (about 60%). i was fully aware that i could not hold him accountable for any future problems with the car. i was fully aware that it had been through an accident before, although minor. also, the engine light was on when i bought it, which i mistook for a regular service overdue light. i know it needs tire replacement as well.

now, i offered him the deal cos the price was right for my occasional use for the car. in my mind, i was helping him out during his last days while he was trying to wrap things up. but i was never able to tell whether he was happy about the deal or not. i would say its entirely up to the relationship you have with the friend and how professionally you two can handle the deal. things can go sour for sure.


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## Charlie (May 20, 2011)

I'd sell a car to a friend in a minute. And I'd be a little miffed if a friend traded in a car I wanted to buy for less money then I'd offered.

I'd just make sure I did the reverse sales job on the car: tell him all the faults, emphasize the age (and that anything could go wrong), and be brutally honest with my concerns. And make sure I didn't hide anything from him and explicitly tell him I can't promise it won't break down as he leaves my drive. I'd also sell for the least amount I was willing to accept. But if he's willing to take that risk, and I'm no worse off, why wouldn't I let him buy it? 

I did sell a motorcycle to a friend. It was a bit of a beater and ended up having some problems (though nothing too severe or unexpected). He was fine with the buy. (His mother wasn't so pleased ).


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## carverman (Nov 8, 2010)

Charlie said:


> I'd sell a car to a friend in a minute. And I'd be a little miffed if a friend traded in a car I wanted to buy for less money then I'd offered.


+1



> I'd just make sure I did the reverse sales job on the car: tell him all the faults, emphasize the age (*and that anything could go wrong*), and be brutally honest with my concerns.


Obviously, you are not a car salesman. 

You really don't need to do a "reverse sales job", but you should be honest with the buyer and if you, (like me), keep a maintenance record of maintenance, (oil
changes), tires, brakes and any other parts you have had to put in, it makes it a lot easier to sell, because the buyer feels that you are a responsible owner, not one that will just drive a vehicle into the ground and ignore
all warning signs...however..

telling him the worst case that might happen is not a good idea IMO); 
ie: the transmission might fall apart on you..but I'm not responsible for that you understand" 

or even...

"It's got these factory sealed ball joints and they have never been lubricated, so the front wheels could fall off someday on you and you might lose control and get into
an accident and even get killed, when you are driving it"

(as had happened in some cases)....
...is just not a good way to present your vehicle to a friend or any buyer for that matter. 




> And make sure I didn't hide anything from him and explicitly tell him *I can't promise it won't break down as he leaves my drive.* I'd also sell for the least amount I was willing to accept. But if he's willing to take that risk, and I'm no worse off, why wouldn't I let him buy it?


Well even if you were going to sell it to me..a total stranger..I wouldn't buy it from you IF you started to talk about it like that...let's face it, nothing is guaranteed from breakdown or failure at some point..why should a vehicle be any different..even new ones break down and have to be towed into the dealers for warranty repairs.


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## Larry6417 (Jan 27, 2010)

Perhaps the answer depends on how good a friend it is?


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## the-royal-mail (Dec 11, 2009)

It's interesting that the vast majority of poll responses say NO, it's not a good idea to sell to friends.

It is a good friend, someone I enjoy talking to and hanging out with. He has put a lot of effort into the friendship but I would hate for something awkard to ruin things. I think I'll keep the car (and the friendship) as is. I like the idea described above about a reverse sale to say what's wrong with the car. In this case the car is only 3 years old and has low mileage. I was thinking of offering a price somewhere between what the dealer would offer and what a comparable car would sell for on the private market. But I think I value this friendship more than the extra money.

Of course, it's already awkward because if I do decide to sell it after all, he will now be upset that I didn't offer to him.

Touchy situation!


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