Sell Your Used Car For The Most Money: 8 Simple Steps for Success

You may be thinking of getting a new car or just having an extra vehicle sitting in garages that you want to sell. While selling a used car isn’t easy for everyone, knowing where to start to sell your used vehicle will make the sale goes smooth and easy.  

In this article, we cover all the basics of how to sell a used vehicle. If you are considering to sell your used car, keep reading to find out how to get the top dollar out of selling your used vehicle. This step-by-step instruction will ensure the selling process is simple and compile with Canadian laws. 

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Sell Your Used Car in 8 Steps:

1. Choose the way to sell your used car

The first step to sell your used vehicle is to decide whether you want to sell it privately or trade it in to a dealership. The value of your vehicle may vary depending on the way you use it. For example, if you trade-in your car to a dealer, you might not get as much as you would by selling it privately. Trade-in value is typically less than the market value of a similar vehicle listed for sale. But trading in your car is an easy and fast way to sell your used car since the dealer will take care of all the paperwork and fix any dents or scratches. While selling your car privately, you can usually sell your used cars for more than the trade-in value. In turn, you will need to invest your time in communicating with potential buyers, answering questions about the vehicle, and taking people for test drives. Or even need to spend money for detailing, reconditioning, listing, and marketing. It’s not an easy decision to make but you can weigh them out and decide which works the best for you.

Alternatively, you can get an Instant Cash Offer which is easy and quick, and you can turn your car into cash on the same day. Check out Instant Cash Offer at Carnex.

2. Prepare Documents for Selling Your Used Car

Before you offer to sell your used car, make sure you have gathered the paperwork for your car.

Here are what you need when selling your used car privately:

• the Used Vehicle Information Package
• the Vehicle Identification Number (VIN) 
• a valid car title 
• a signed bill of sale with your name, the buyer’s name and address, the date and purchase price
• a completed and signed Application for Transfer 

If you want to get the best price possible when you sell, you should prepare additional paperwork such as: 

• Your service records. Provide potential buyers with as much service history as possible to show how well the car’s been cared for.
• A vehicle history report (VHR) to be transparent about the vehicle’s history that including registration history, accident history, unfixed safety recalls, lien status, and more.

All of this paperwork gives car buyers peace of mind that they are buying a good car and also shows that you have nothing to hide. In turn, potential buyers are more likely to pay a better price for it.

3. Find out the value of your used vehicle

Determining your car’s value is a critical step if you want to sell your used car privately. The value of your used vehicle will depend on its actual condition, and setting a fair price for your used vehicle is important to a smooth transaction. Setting the price too high may result in no potential buyers, while you could undervalue and you won’t get as much as you’d like to sell it for. 

It’s important to understand that there are many factors that contribute to your vehicle’s value, including its history, condition, and odometer reading. You may want to do some search and learn what similar vehicles in your area have actually sold for. You may use the average as a baseline to value your vehicle. Then list the extra features or history that can impact the value of your vehicle. 

For Canadians, a reliable resource to determine your car’s value is Canadian Black Book . You can also corroborate this information with other sources like Carfax for a comprehensive measurement.

4. Tips for setting the asking price

Other than using online sources to price your used vehicle, you can also consider getting a mechanic’s assessment that can identify any issues with your vehicle. This will help you to set up a fair price to sell your used vehicle. 

You can also check listings in your location to see what are similar vehicles are selling for.

Some factors you may consider when you price your used vehicle higher than the market price for the top dollar are includes:

• Warranty: a transferable extended warranty that covers bumper to bumper or powertrain.
• New tires or brakes: if you’ve changed a new set of tires or installed new brakes.
• Regular maintenance: regular maintenance records that show the buyer you’ve kept up with scheduled maintenance and taken good care of your car.

5. Prepare your used car for sell

You’ll always want to address any major mechanical issues first unless you plan on sell your used car at a reduced price. Any little scratch, dent or upholstery stain could have an impact on the value of your car. It’s important to make sure your car is presentable when you show it to its potential buyers. If there are any minor repairs or maintenance that are required, you may consider getting your car professionally detailed before putting your car on the market. Also, having a good cleaning inside and out is important, especially during the coronavirus pandemic.

Cleaning and detailing your car professionally will add hundreds of dollars to your selling price.

6. Prepare for the questions that potential buyers might have

It’s important to get prepared for the questions that used car buyers might ask frequently. Here are what potential buyers may ask:

• The reason you selling your used car
• Mileage: the odometer readings
• The condition of your car
• Any issues you had experiencd with your car
• Any major repairs or damage history

7. Tips for price negotiation

In a private sale, let the car buyer take the lead in any negotiation. If you start with an accurate asking price, the chances of price negotiation could be reduced largely. To support the value of your used vehicle, you need to be prepared with documents that can prove the value of your car.  

A vehicle history report (VHR) and the service records can be very useful information that can support your asking price is accurate.

8. Prepared your paperwork checklist

Once the buyer agreed to make the purchase, you need to officially finalize the sales. Make sure you meet the regulatory requirements for transferring ownership and hand over all the required documents to the buyer. 

Since each Canadian province has different regulations,  you may contact your provincial government when you are in doubt. 

In Ontario, the below documents are required when selling your used car:

• A used vehicle information package (UVIP)
• A signed bill of sale with your name, the buyer’s name and address, and the purchase date and price
• A completed and signed application for transfer
• A  Safety Standards Certificate

Once the sale is closed, make sure you ask for a certified bank check or cash instead of personal cheques, these are the secure forms of payment while personal cheques are more susceptible to fraud.

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