Sell your used vehicle in 8 steps

Here’s how to sell your used vehicle in simple eight steps.

If you are looking to sell your used car, this blog is for you!

Knowing where to start for selling your used vehicle will make the sale goes easy and smooth. 

Here are 8 steps you should follow when selling a used car:

1. Decide if you want to sell your used vehicle privately or trade it in 

Selling your used car or trading it in to a dealership is always the first step to think about. 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 you might see a similar vehicle listed for sale at. However, trading in your car is an easy way to go 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 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.

2. Find out the value of your used vehicle

Determining your car’s value is a critical step if you are selling your used vehicle privately. Setting a fair price for your used vehicle is important to a smooth transaction. Set the price too high you may result in no potential buyers, while you could undervalue and you won’t get as much as you’d like put towards your next vehicle. 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 https://www.canadianblackbook.com/. You can also corroborate this information with other sources like Carfax.ca or Autotrader.ca for a good measure.

3. Get your paperwork ready

When you sell your vehicle, you need to give the buyer:

• 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 includes 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.

4. Get your car ready for sale

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 should probably take care of them before putting your car on the market. Also, having a good cleaning inside and out before taking pictures, or paying a detailer to give it the once-over may add hundreds of dollars to your selling price.

5. List your used vehicle

Listing ad of your used vehicle should be simple and to the point, here are what should include in your ad listing:

• Good quality photographs
• A listing price
• A brief note that describes the car’s condition
• The make and model of your car
• The year and mileage
• Extended warranties if available 
• Extras like winter tires
• Contact information 

6. Prepare for the questions that buyers might ask

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. Get yourself prepare for price 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. Finalize the transaction

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 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 vehicle:

• 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 deal 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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