Are you looking to sell your car, but are unsure as to whether to sell to a dealership or go the route of a private sale? Though the process is not as complex as you might think, there are some steps that need to be followed to ensure that the sale goes smoothly.
Private Car Sales
Before you list your car for sale, you need to get an idea of the vehicle value, needed repairs and preparation, where you will list the car and how quickly you want it to sell.
Tips for getting maximum value for your used vehicle
- Take care of your car – keeping up with both major and minor repairs will help to maintain the value of the vehicle.
- Clean your vehicle inside and out – a clean vehicle photographs better.
- Price to negotiate – pricing too high can deter potential buyers, while pricing too low may tempt potential buyers to try to bring the price down even lower. Know the value of your vehicle, list at a fair price, and know the lowest price you will accept.
The Private Sale Process
- Buy a Used Vehicle Information Package (uVIP).
- List your vehicle.
- Review offers from buyers.
- Give the uVIP package to the buyer with the information complete.
- Complete Application for Transfer portion on the vehicle registration. Detach and give this to the buyer.
- Provide the buyer with the Safety Standards Certificate (if required) from a licensed mechanic.
- Remove your license plates from the vehicle (you can also request a refund for any full months left on plate stickers from Service Ontario).
- Complete the payment transaction.
Documents to give to the buyer
- uVIP
- Signed Bill of Sale
- Completed Application for Transfer
Documents you (the seller) keep
- License plates
- The Plate portion of your vehicle ownership papers
Completing the Bill of Sale
Since selling a car is a legal sales transaction, you will need a signed bill of sale. It must include the following:
- Name and address of buyer and seller
- Date of the transaction
- Vehicle Identification Number (VIN)
- Make, model, year and colour of vehicle
- Sale Price
- Signature of Buyer and Seller
Selling the car “As Is”
Many people opt to sell their car “as is” – this means you are selling it in its current state, and once the vehicle is sold, the buyer assumes the responsibility for any issues encountered. If you choose to sell the car “as is,” be clear and up front about the state of the vehicle, and write the state of the vehicle “as is” in both the ad and on the bill of sale, once complete. Adjust your price expectations accordingly if you are selling “as is.”
Selling Through A Dealership
Selling through a dealership is an appealing alternative to some because it is less time-consuming for the seller. Note that often, dealerships will offer a lower price than a private buyer might be willing to pay. Dealerships often offer a trade-in option if you are looking to purchase a new vehicle from them. Knowing your car’s value, brushing up on negotiating skills and getting offers from multiple dealers are a few ways you can get the most money out of your dealership sale.
