Pricing

• One of the most difficult parts of conducting a sale is figuring out the price of the car. If the seller prices the car too high, she won't find a buyer; if she prices it too low, she'll leave money sitting on the table. A seller should consult the Kelley Blue Book value of the car, and more importantly, consult local classifieds to seek what similar cars are going for, as price can vary by region based on demand.
  
  

Finding A Buyer

• When searching for a buyer, most sellers will generally have to advertise. In some cases, an ad in the classifieds -- either online or in a local periodical -- will be enough. However, in some cases, particularly if the car is a specialty vehicle, the seller will have to advertise in specific publications. For example, hot rod owners should place ads in magazines and on websites read by hot rod enthusiasts.
  
  

Transaction

• Each state has its own rules about how private parties are required to buy and sell cars. In all cases, the state must be notified of the sale, so that it can keep a record of who owns each vehicle registered in the state. The seller will usually need to provide the buyer with a current title and, even if it is not required, he should make up a legal bill of sale for both parties to sign.
  
  

Trade-Ins

• In lieu of selling the car to a private party, sellers who are purchasing a new car from a dealer will often choose to trade in the old car to the dealer. Generally, the price the seller will receive on the car will be lower than the price she would fetch on the open market. However, the seller will be spared the hassle of organizing the sale herself. Plus, in most areas, the price she receives on the trade-in can be deducted from the price of the new car, thus reducing the sales tax she'll have to pay.