There is plenty of paperwork and some preparation that is required in order to sell a used car in Ontario, but if you get it right, you can sell your used car in Ontario in a smooth transaction. Whether you’re selling to another private individual, a dealership, or an auto recycling company, you’ll want to know what you need to do to get the most money for your car and get through the process as smoothly as possible.
1. Set a Competitive Price
It is important to know what a fair price for your used car is. Looking for vehicles similar to yours on popular platforms such as AutoTrader, Kijiji, or Facebook Marketplace will give you an idea of the market rate for the car you’re selling, based on make, model, mileage, and condition. In addition to this, the CARFAX Canada Value Range tool provides you with a custom price based on your vehicle’s history and local market trends. If you are able to price competitively, you increase your chances of a quick sale without long negotiations.
2. Get the Required Documentation
In Ontario, the sellers must provide some key documents to the buyers. These include:
- Used Vehicle Information Package (UVIP): This is a mandatory package that gives information about the car’s registration, lien status, and a bill of sale. You can buy it from Service Ontario for about $20.
- Safety Standards Certificate: A safety certificate is usually required if the buyer is going to put the car on the road. Your vehicle has been certified to meet Ontario’s safety standards, and this certificate can be obtained from a licensed inspection station.
- Bill of Sale: This should include the date of sale, purchase price, VIN (vehicle identification number), and names and signatures of buyer and seller. It can be handwritten or supplied in the UVIP.
You want to have these documents ready because they’re necessary to finalize the sale, and it shows buyers that you’re prepared and transparent.
3. Prepare Your Vehicle for Sale
A well-maintained car is a cleaner, more attractive car and can often sell for a higher price. Here are some steps to make your car more marketable:
- Clean Inside and Out: Clean your car properly and consider a professional detailing service. Remove all personal items from the trunk and under seats to ensure the area is spotless.
- Repair Minor Issues: Minor fixes like replacing worn-out tires or fixing cosmetic damages can make the vehicle look good.
- Capture High-Quality Photos: Take photos from various angles in bright, soft lighting, highlighting the car’s best features. Include shots of the exterior, interior, and the odometer documenting mileage.
4. List Your Car Online
The majority of Ontario’s used car sales begin on the internet, with buyers visiting websites like AutoTrader, Kijiji, and Facebook Marketplace to find their new car. Here are some tips for creating an effective listing:
- Write a Clear Description: Be honest about the condition of the car and any problems you know of. Add mileage, any recent repairs, and additional features.
- Upload Quality Photos: Ensure the photos are clear and show all important details.
- Consider Adding a Vehicle History Report: If the vehicle has been in an accident, buyers are often interested in its history. Including a CARFAX report helps establish trust with potential buyers, though it isn’t necessary.
5. Potential Buyers Negotiation
Be prepared to answer questions about why you are selling your car and negotiate with potential buyers. Questions may include the car’s history, any previous repairs, and why you’re selling. Leave some wiggle room on your price but know the minimum amount you will accept. During discussions, be polite, firm, and transparent to build a good relationship with buyers.
6. Transfer Ownership
Once you’ve agreed on a sale price, you need to transfer ownership. Here’s how:
- Sign Over the Ownership: In the back of your vehicle ownership permit, fill out the “Application for Transfer” section. The seller must sign this portion and include the buyer’s information.
- Visit Service Ontario Together: While it’s not mandatory, many sellers and buyers go to Service Ontario together to ensure the transfer is done correctly, giving peace of mind that the transaction is completed.
- Remove Your License Plates: In Ontario, the license plate moves with the seller, not the car. Collect the plates for your next vehicle or return them to Service Ontario to see if you can get a credit.
Selling to an Auto Recycler: Cash for Scrap Cars
An auto recycler can be a great option for selling your car if it’s older or has serious mechanical problems. Cash For Scrap Cars provides convenient methods for selling vehicles that are not roadworthy. Most of the paperwork is handled by them, and they can often tow the car for free. Selling to a licensed auto recycler ensures that the sale is legitimate and won’t end up with a “scrap pirate” or an unlicensed buyer. Some recycling centers may still require proof of ownership, so have the original ownership document ready.
7. Finalize the Payment
Accept secure payments, such as cash or a certified bank draft. Don’t use personal checks, which may be less reliable. When the payment is made and the documents are signed, you can hand over the keys and know you sold your vehicle.
Wrapping Up
If you are selling a used car in Ontario, you need to plan carefully, communicate transparently, and document everything carefully. Following these steps will help make the process easier and may even help increase your car’s value. Ontario’s structured vehicle sale approach means that both sides of the transaction are secure, whether you sell privately or through services like Cash For Scrap Cars.
