Sell a Car with Mechanical Problems: Tips and Strategies

How to Sell a Car with Mechanical Problems

Selling a car with mechanical problems can be challenging, but it’s not impossible. Whether the issue is a faulty transmission or engine trouble, there are still ways to find a buyer. The key is knowing how to price it and where to sell it. In this article, I’ll discuss the current market for used cars, how to assess the value of your current car, and the general guidelines for how to sell a car with mechanical problems and get the most money out of it.

What’s the used car market like right now? (2024)

In 2024, the market for selling a car with mechanical problems is relatively stable, but it comes with challenges due to both market shifts and the nature of damaged vehicles. However, several factors may still work in your favor.

Lower Used Car Supply: More used cars are available than during the pandemic, but there’s still a shortage of used cars, partly due to pandemic-era disruptions in production and a decrease in lease returns. As a result, older cars with more miles and mechanical problems are still in demand, especially among buyers looking for affordable options or project vehicles,​ according to Cars.com.

Increased Competition in the Buyer’s Market: Some dealerships and online platforms like CarMax, CashForCars, and DamagedCars have made it easier to sell a car with mechanical issues. These services offer quick evaluations and even free towing, making them convenient options for sellers looking to offload their cars without investing in repairs​

Lower Trade-In Values: Trade-in values are generally lower in 2024 due to modest market normalization and depreciation trends. If you choose to trade in a car with mechanical problems, expect the trade-in value to be significantly reduced—potentially up to 50% of its estimated worth in working condition.​

Private Sales Can Still Work: If you are patient, a private sale can fetch a higher price, especially if you target DIY mechanics or car enthusiasts who may want to repair or use the car for parts. Honesty about the mechanical issues and detailed records of the vehicle’s history will be crucial in attracting the right buyers.​

Assess Whether Your Car Is Saleable At All

Here’s where it pays to know what you’ve got. For example, if you own a Nissan with a bad transmission or a Hyundai or Kia with known engine and theft problems, you’ll have a tough time selling your car to anybody at any price. That’s because a replacement Nissan transmission usually costs more than your car is worth, so nobody will buy it. If you have Hyundai and Kia vehicles with bad engines and you’re not eligible for extended warranty protection, you’re in trouble. Getting your hands on a new engine is almost impossible due to the backlog, and you’ll overpay for a used engine due to the high demand. For vehicles with high engine and transmission failure rates, your best bet may be to sell it to the junk dealer offering the highest price.

Determine if your used car is saleable

We know it has a serious mechanical problem, but what’s the condition of the rest of the vehicle?

• Engine is bad, but how’s the transmission, and vice versa?— If the other major components are in good shape, somebody who’s car-savvy might be interested
• How’s the body and interior—There’s always a buyer if the body and interior are in good condition. When it comes time to sell, play up the clean exterior and interior.
• Have you invested in recent repairs?— If the vehicle has new brakes, tires, shocks, struts, steering rack, control arm, radiator, of computers, they all add value to the vehicle. Spotlight them in your ad.

If your vehicle has a decent body, minimal frame rust, decent brakes, and tires, and the other major components are in good working order, you can probably sell it and make more than a junkyard will offer you.

Find out its current value based on its condition

1) Get the current KBB.com or Edmunds.com value based on its body and interior condition but with no mechanical issues.
2) Take the KBB/Edmunds price and subtract the cost of the repair/replacement of the failed major component.
3) Then deduct 25%-30% as a fear-factor penalty discount. No buyer wants to buy a vehicle they can’t test drive, so they’ll need extra incentive to cover the risk that there might be other problems you haven’t disclosed (or are even aware of).

Find Potential Customers Where They Work And Play

Professional mechanics are always looking for a decent vehicle and aren’t afraid to replace an engine or transmission. The same applies to serious DIYers. Either they can handle a major repair or they have a relationship with a shop that can do the work for them.

1) Print flyers with color pictures of the exterior and interior, a list of the major problems, and a list of all the recent repairs.
2) Contact the shop manager at all local and dealer shops and ask if you can post the flyer in their lunchroom.
3) Stop at all the professional auto parts stores and ask if you can post your flyers in the employee lunchroom and on their community bulletin board.
4) If your vehicle is driveable, park it near local auto repair shops and dealers. Post For Sale signs on it.

Patience or a Quick Buck?

If you’re trying to sell a car with mechanical issues, you’re selling a unique product to a limited audience. So it’s going to take time to find the right buyer. Be patient! If you need the money now and have given the sales thing your best shop, call the junkyard people

©, 2024 Rick Muscoplat