Contents

1. Can you sell a car with a fault?

2. Which types of faults affect the price the most

3. How to find out how much a faulty car is worth

4. Options for selling a car with a fault

5. Sell a faulty car to a private buyer

6. Sell a faulty car to a dealer or car buyer

7. Sell a faulty car to a scrap yard

8. What documents you need to sell a faulty car

9. How to prepare the advert or offer

10. Common mistakes when selling a faulty car

11. How Dealcar can help you

12. Frequently asked questions

Can you sell a car with a fault?

Yes, you can sell a car with a fault. Having a fault does not prevent you from selling the vehicle, as long as you properly inform the buyer and make the situation clear in the sales contract.

The important thing is not to hide the problem. If the car has a known fault and you do not disclose it, the buyer may make a claim later. And quite rightly too, unfortunately for anyone who thinks “sold as seen” is a magical phrase with legal powers.

You can sell a faulty car if:

• It has a mechanical fault.

• It does not start.

• It has an electrical fault.

• It has engine problems.

• Its gearbox is damaged.

• It has bodywork damage.

• It has been in an accident.

• Its MOT has expired or it has failed.

• It needs expensive repairs.

• It has been standing for a long time.

The difference lies in the type of buyer. A private buyer may be more wary. A professional may be more used to valuing cars with problems. A scrap yard may buy it for parts. A dealer may be interested if the model is in demand and the repair is worthwhile.

So before ruling out options, it is worth comparing them.

Which types of faults affect the price the most

Not all faults have the same impact. Some only reduce the price a little. Others can knock it down quite a lot, because fixing them costs more than the car is worth.

Engine faults

Engine faults are usually the most delicate. If the car has head gasket, timing, turbo, injector, excessive oil consumption or compression loss problems, the buyer will take on a lot of risk.

This type of fault can reduce the value a great deal, especially on older cars or those with high mileage.

Gearbox problems

A damaged automatic gearbox or a manual gearbox with serious problems can also affect the price significantly.

Repairs can be expensive and not every buyer wants to take them on.

Electrical faults

Electrical faults can be very inconvenient because they are sometimes hard to diagnose. Warning lights, intermittent faults, ECU problems, sensors or electronic systems can all create mistrust.

The fun part, naturally, is that the car can work perfectly when you show it and then fail immediately afterwards. Modern electronics: the reminder that progress can also ruin an afternoon.

Clutch faults

A worn or damaged clutch can reduce the price, but it is a fault that is easier to understand and budget for. If the buyer knows the approximate repair cost, the negotiation can be simpler.

Cooling system problems

Coolant leaks, overheating or damaged radiators are fairly worrying, because they can be linked to more serious engine damage.

Bodywork damage

A bump, scratches, dents or damaged bumpers reduce the value, but they are usually easier to assess than a serious mechanical fault.

If the damage is only cosmetic, the car may still be in demand.

Car that does not start

A car that does not start can have anything from a dead battery to a serious fault. The problem is that the buyer will not always know the cause, so they will usually offer less to cover the risk.

Failed or adverse MOT

If the car has not passed its MOT because of defects, you must explain exactly what faults appear in the report. A blown bulb is not the same as a serious brake or structural problem.

You can expand on this point with the guide on sell a car without an MOT.

How to find out how much a faulty car is worth

Calculating the value of a faulty car is not as simple as looking at similar cars online. Those cars are usually running, MOT’d and ready to drive. Yours may need repairs, recovery, diagnosis or extra investment.

To estimate its value, you need to start with three figures.

1. Value of the car in good condition

First, calculate how much your car would be worth if it were working properly.

Take into account: make, model, version, year, mileage, equipment, general condition, demand, maintenance history, emissions label.

You can use this guide to find out how much your car is worth.

2. Estimated repair cost

Next, calculate how much it would cost to fix the fault.

Ideally, you should ask a garage for a diagnosis or quote. Without a benchmark, negotiation will be harder because the buyer will assume the worst-case scenario.

If the fault costs £800, it is not the same as if it costs £4,000. Mysteriously, buyers notice the difference.

3. Risk the buyer takes on

Even with a quote, the buyer may still deduct a bit more for risk.

Why? Because when a car is repaired, additional issues can appear: unforeseen parts, extra labour, related faults, hidden damage, no guarantee of the result, time off the road.

That is why a professional buyer will usually not just deduct the exact repair cost. They also deduct uncertainty.

Approximate formula

A simple way to think about it:

Approximate value = value of the car in good condition - repair cost - risk margin

Example:

It is not an exact formula, but it helps avoid wishful thinking.

If you want a first reference, you can get a free online valuation of your car, although you should be aware that an online valuation can change a lot if the car has faults.

Options for selling a car with a fault

You have several alternatives. The best one will depend on the type of fault, the car’s value, urgency and how much time you want to spend.

Sell it to a private buyer

This can work if the car still has value, the fault is clear, and you find a buyer who wants to repair it.

Advantage:

• You may be able to get a higher price.

Disadvantage:

• More doubts, more negotiation and more risk of claims if you do not document the condition properly.

Sell it to a dealer or car buyer

Some professionals buy cars with faults if the model interests them, if the repair is worthwhile or if they can resell it afterwards.

Advantage:

• Less admin and a buyer who is more used to assessing risk.

Disadvantage:

• The offer may be lower because the professional needs a margin.

You can read more in this guide on how much a dealer pays for a used car.

Sell it to a company that buys cars

Some companies buy used vehicles, even with problems, although it will depend on the condition, age and demand for the model.

Advantage:

• Fast process.

Disadvantage:

• You may receive only one offer and not know whether it is competitive.

You can review the guide on companies that buy cars in Spain.

Sell it to a scrap yard

If the car is worth little, is badly damaged or repairing it does not make financial sense, a scrap yard can be an exit route.

Advantage:

• Quick solution if the car is no longer worth repairing.

Disadvantage:

• The price is usually low and may be based on parts or scrappage value.

Get offers from dealers

If you are not sure which buyer might be interested, a good option is to open the car up to professional buyers.

With Dealcar, more than 1,000 dealers can compete for your car. This can help you find out whether there is real interest in the vehicle, even if it has a fault.

Sell a faulty car to a private buyer

Selling to a private buyer can be viable, but it requires transparency.

A private buyer may accept a faulty car if they know how to repair it, have contacts at garages, are looking for a cheap car, want parts, really like that model, or are willing to take on the risk.

But they will also be more sensitive to any doubts.

What you should explain

In the advert or conversation, clearly state: what fault it has, when it appeared, whether the car starts, whether it can be driven, whether it has an MOT, whether you have a garage diagnosis, whether you have a repair quote, whether there are any other known defects, whether it is handed over by recovery truck or driven away.

What to include in the contract

The contract should reflect the car’s true condition.

Include: known fault, mileage, MOT status, whether it starts or not, whether it is handed over as driveable or not, agreed price, date and time of handover, method of payment, and a declaration that the buyer is aware of the condition.

You can use this guide on the car sale agreement as a reference.

Sell a faulty car to a dealer or car buyer

Selling to a professional can be more convenient if you do not want to explain the fault to dozens of private buyers.

A dealer or car buyer may value the car based on: model value, demand, repair cost, resale potential, commercial margin, age, mileage, paperwork condition, ease of transport.

Advantages

• Fewer calls.

• Less haggling.

• A buyer more used to problem cars.

• Possible quicker handling.

• Less risk of claims if everything is made clear.

• You do not have to place adverts.

Disadvantages

• The offer may be more conservative.

• If the fault is serious, it may not be of interest.

• The professional will deduct repair, risk and margin.

• A pre-inspection may be needed.

If you are deciding between a professional and a private buyer, you can read this guide on selling a car to a dealer or a private buyer.

Sell a faulty car to a scrap yard

A scrap yard is usually an option when the car is in poor condition, has a very expensive fault or simply is not worth repairing.

It may make sense if: the car is very old, does not start, the repair costs more than its value, it has serious damage, it fails its MOT, it has suffered a major accident, you want to scrap it, you need it removed quickly.

Advantages

• Quick solution.

• Collection may be included.

• Useful if the car has no market.

• Avoids continued running costs.

Disadvantages

• Low price.

• Less room for negotiation.

• You do not make use of possible interest from professional buyers.

• It may not be worthwhile if the car still has commercial value.

Before taking it straight to the scrap yard, it is worth comparing options. Sometimes a car that seems “dead” can still have value for a professional. Mechanical hope exists, although it usually comes with an invoice.

What documents you need to sell a faulty car

Selling a faulty car requires practically the same paperwork as selling a normal car.

Prepare:

• Seller’s DNI or NIE.

• Buyer’s DNI or NIE.

• Registration certificate.

• Technical data sheet.

• MOT, if valid, or the report if it has failed.

• Sales contract.

• Proof of payment.

• Vehicle history report, if you have one.

• Diagnosis or repair quote, if there is one.

• Documents relating to any charges or finance, if applicable.

• Second key, if you have it.

• Maintenance invoices.

You can expand the checklist with this guide on documents needed to sell a car.

If the car has finance, a title retention clause or any charges, check the situation before closing the sale. There is little point in fixing a fault only to then discover that the car cannot be transferred. That would be bureaucracy with a dark sense of humour.

You can also read:

• Sell a financed car

• Sell a car with title retention

How to prepare the advert or offer

If you are going to list the car or send it to professional buyers, prepare the information properly.

Clear photos

Include photos of the exterior, interior, dashboard, mileage, visible damage, engine if relevant, tyres, paperwork, and the areas affected by the fault if they are visible.

Transparent description

Explain: make and model, year, mileage, engine, version, general condition, known fault, whether it starts, whether it can be driven, MOT, maintenance, price, whether you accept offers.

Diagnosis or quote

If you have a garage diagnosis, use it. It builds trust and reduces uncertainty.

A buyer should not have to guess whether the fault costs £200 or £3,000. The clearer you are, the less pointless haggling there will be.

Realistic price

Do not set the same price as a car in good condition. The buyer will compare and use the fault to negotiate.

It is better to set a sensible price and explain that the problem has already been factored in.

How much does a faulty car depreciate?

There is no single answer. Depreciation depends on the type of fault and the car’s base value.

It depreciates little if…

• The fault is minor.

• The car is in high demand.

• The model is recent.

• It has been well maintained.

• The repair is cheap.

• It has a valid MOT.

• The diagnosis is clear.

It depreciates a lot if…

• It does not start.

• It has an engine fault.

• Its gearbox is damaged.

• It has structural damage.

• It has failed its MOT.

• It is old.

• It has high mileage.

• The repair costs more than the car is worth.

• There is no clear diagnosis.

Indicative example

To avoid selling blind, compare references and offers. You can review this guide on book value vs market value of a car.

Risks when selling a faulty car

Risks for the seller

If you do not inform the buyer properly, you may have problems later.

Main risks:

• Claims from the buyer.

• Accusations of hiding defects.

• Disputes over the car’s true condition.

• Problems if the car cannot be driven.

• Disputes over payment or handover.

• Poorly handled transfer.

Risks for the buyer

The buyer takes on:

• Repair costs.

• Risk of hidden faults.

• Transport or recovery.

• MOT.

• Possible inability to use the car.

• Time off the road.

• Uncertainty about the final value.

That is why many buyers will ask for a discount.

How to reduce risks

• Be transparent.

• Put everything in writing.

• Include the fault in the contract.

• Provide supporting documents.

• Do not promise what you do not know.

• Do not accept doubtful payments.

• Make a notification of sale if applicable.

If you sell online, also see how to avoid scams when selling a car online.

Common mistakes when selling a faulty car

Hiding the fault

Bad. Very bad. In the short term it may seem useful, but in the medium term it can end in a claim.

Playing down the problem

Phrases like “it’s nothing” or “I’m sure it can be fixed for very little” create mistrust if you do not have a quote.

Not having a diagnosis

Without a diagnosis, the buyer takes on a high risk. And high risk means a low offer.

Asking for the price of a car in good condition

If the car is faulty, the price should reflect that. Denying reality does not increase the value. It only reduces buyers’ patience.

Not saying whether it can be driven

It is crucial to say whether it starts, whether it can be moved, whether it needs recovery, or whether it has an MOT.

Not reflecting the fault in the contract

It must be written down that the buyer knows the condition of the car.

Accepting the first offer

A faulty car may be worth more than it seems to certain buyers. Compare before selling.

How Dealcar can help you

Selling a faulty car on your own can be a hassle: adverts, questions, haggling, buyers who want to see it “out of curiosity”, arguments about the fault and offers far below the real value.

With Dealcar you can avoid posting adverts and negotiating with private buyers. More than 1,000 dealers can compete for your car, even if it has a fault or a special situation.

This allows you to:

• Receive professional offers.

• Compare before deciding.

• Avoid calls and haggling.

• Cut down on wasted time.

• Not rely on a single valuation.

• Sell without posting adverts on several portals.

• See what real interest your car generates.

The key is not to assume that, because it is faulty, your car is only worth what the first buyer says.

You can receive dealer offers for your car and decide whether any suit you.

Frequently asked questions about selling a faulty car

Can you sell a car with a fault?

Yes, you can sell a car with a fault. The important thing is to inform the buyer properly, reflect the fault in the contract and adjust the price to the vehicle’s real condition.

Where can I sell a faulty car?

You can sell it to a private buyer, a dealer, a car buying company, a scrap yard, or receive offers from dealers through Dealcar.

Is it worth repairing the car before selling it?

It depends. It may be worthwhile if the repair is cheap and clearly increases the sale value. If the repair is expensive or the car has little value, it may be better to sell it faulty.

How much does a car with a fault depreciate?

It depends on the type of fault. A minor fault may have little impact, while a blown engine, damaged gearbox or car that does not start can reduce the price significantly.

Do I have to say that the car is faulty?

Yes. You must inform the buyer and put it in writing in the contract. Hiding a known fault can lead to later claims.

Can I sell a faulty car without an MOT?

Yes, but you must disclose both situations: the fault and the expired, failed or missing MOT. You should also reflect this in the contract.

Will a dealer buy faulty cars?

Some do, depending on the model, condition, demand and repair cost. That is why it is worth comparing professional offers before ruling this option out.

What documents do I need to sell a faulty car?

Normally you will need DNI or NIE, the registration certificate, technical data sheet, MOT if there is one, a sales contract, proof of payment and any paperwork relating to charges, finance or faults if applicable.