If you prepare your car and do your paperwork correctly, selling a car in Ontario can be a relatively easy process. A detailed guide to help you maximize your car’s sale value and make for a smooth transaction.
Step 1: Gather All Required Documents
Selling a used car privately in Ontario has specific requirements. The biggest document is the Used Vehicle Information Package (UVIP) that contains the vehicle’s history, including past owners and liens. The UVIP can be obtained through ServiceOntario for a small fee and, by law, is required to be given to the buyer.
Other necessary documents include:
- Bill of Sale: This is for the sale price, the vehicle identification number (VIN) and signatures of buyer and seller.
- Safety Standards Certificate: This certificate is required if the car is over seven years old, and confirms that the car meets Ontario’s safety standards.
- Application for Transfer/Tax Form: This form is located on the back of the vehicle permit; it must be signed by both parties before ownership is transferred.
Step 2: Set a Competitive Price
The price has to be right to attract potential buyers. Find out what similar vehicles are selling for in Ontario by checking platforms AutoTrader, Kijiji Autos, and Facebook Marketplace. Private sales are often based on the idea that you will price your car slightly above what you want to get and let the buyer negotiate. Mileage, condition and any recent repairs are all things to consider when thinking about the car’s market value.
Step 3: Clean and Prepare Your Car
A well presented car does make a difference when it comes to getting buyers. Go through that interior and exterior, taking the time to make sure you’ve done a really deep clean and that some of the cosmetic stuff isn’t going to add to the eyesores around the vehicle that might present with an eye to the vehicle’s value. It makes sense to spend money on a professional detailing service, because a clean vehicle often sells for more.
Remove all personal items and if you have the maintenance records, then organize them. A history of upkeep shows buyers you’ve taken care of your car, and they appreciate a little transparency.
Step 4: Create an Engaging Listing
When your car is ready, write a detailed listing that will grab buyers’ attention. Try and use high quality photos of the vehicle from multiple angles, and also include closeups of the dashboard, engine and tires. A compelling title that explains the feature of a car such as “2018 Honda Civic – Well Maintained, Low Mileage, Safety Certified” can describe what can be best of a car.
In your listing description, include:
- Year, make, model and mileage
- Condition of car and last maintenance
- Features that are unique such as a sunroof or heated seats
- If relevant reasons for selling
Your listing can also seem more appealing with a video walkthrough. It helps potential buyers see themselves in the product, essentially seeing how it looks like and helping them picture themselves owning it.
Step 5: Select your Right Selling Platforms.
There are many platforms to sell a used car in Ontario. Sites like AutoTrader, Kijiji and Facebook Marketplace will let you list it for free and your car will be exposed to a wide audience. If you’d rather sell your car a bit faster with less personal involvement, you might try working with dealerships or online car buying services. Trade-in or direct buy offers are common with dealerships, but will typically lend itself to a lower sale price than a private sale.
Cash For Scrap Cars also comes forward to sell vehicles and offers the service of vehicle selling with ease as it is hassle free service of selling older cars or those vehicles no longer in good shape. It could be a handy alternative if you don’t want the time investment of a private sale.
Step 6: Screen Potential Buyers and Communicate
After your listing is live you will start to get inquiries. When you monitor your messages, you are more likely to close a sale as prompt responses increase. Instead of just displaying the car, ask them questions to screen them out as potential buyers to understand their interest level and see if they know what you’re selling, its condition, price, etc.
When you are arranging meetings, think about safety. If you can, bring a friend along, and meet in a public location like a parking lot or bank. Serious buyers can test drive the car, but keep their ID just in case and ask your insurance provider if the test drive is covered.
Step 7: Finalize the Sale
When you have a buyer and come to an agreement on a price, it’s time to close. Oftentimes, the safest certified payment method is to accept bank draft or electronic transfer. Fill out the Bill of Sale and the Application for Transfer/Tax Form with the buyer, and sign them. Together, visit a ServiceOntario location to complete the transfer of ownership and finalize the transaction, and you’re no longer responsible for the vehicle.
Before handing over the keys, don’t forget to:
- Take off your license plates (these come with you, not the car).
- Always keep a copy of all sale documents.
- Let your insurance provider know you’ve sold.
If you follow these steps, you can sell a car in Ontario and get the most money for it.
