How to Sell Your Car in Ontario
How to sell a Car in Ontario:
If you decided to sell your used car and thinking “How to sell my car fast” or “How to sell my car easily” don’t worry as there are options you can explore on how to sell your used car in Toronto.
While selling a used car at first glance looked like an easy task, in reality was far from it. Information and knowledge is crucial to safely selling your car and getting the most out of it.
Preparation is key, you have to know what options you have, value of your car, where and how to sell it, how to approach private sales, proper documents and paperwork related to sale, taxes involved and above all safety.
Safety should be paramount to everything else, do not take into consideration any promises or requests from anyone, regardless how benign it may initially seem if you feel your safety will be compromised in any way. Don’t be afraid to say no, there is always another day and another buyer.
Let’s start with easiest options first:
1. Selling Your Car to Car Buying Companies. (SELL MY CAR)
Car buying companies are licensed dealers in Ontario purchasing used cars directly from owners. It’s a simple design, complete a short form online with your vehicle information and receive an offer with price.
Usually, you can sell your used car in a short period of time, even within a day. Also, related paperwork are provided and covered for free. Sale procedures are professional, quite simple and easy.
There are almost no requirements, Safety Certification and any other preparations are not necessary. All cars are bought in “As Is” “Where is” condition. Payments are safe, as you will be dealing with an Ontario licensed dealer and there is no obligation to accept or decline an offer.
Practically, this is easiest and safest method out there by far to sell your car in Ontario.
However, its a compromise as dealers need to make a profit. You will get a lower value (price) when compared to private sales (advertising and selling a car yourself), but prices should generally be higher than Trade-ins.
Offers are simple, free and easy to obtain, you don’t have to do anything or go anywhere and can sell a car from comfort of your home. There are no limitations on vehicle age and mileage. If your car still has a market value, you will get an offer.
Car buying companies should be a first effortless choice when weighting options on how to sell your car in Ontario (Toronto). (SELL MY CAR)
2. Selling Your Car as Trade-in
Selling your car as a trade-in at a dealership is another easy option. However, you have to purchase another new (or used) vehicle, otherwise they might be not interested in purchasing your car.
Trade-In is an easy way to unload your old car, assuming you are in the market to buy a newer car at same time. Usually there are no requirements and you can trade your car in “As Is” condition. It is advisable though that you clean and make it presentable if you decide trade-in your used car. A clean and nice presentation will raise value of your car and also gives you opportunity to negotiate a higher price.
When you sell your car in Ontario as a trade-in, you will also save in taxes. Trade-in price of your car will be subtracted from total amount of your new car purchase, therefore total tax amount will be reduced.
(Example: Let’s say dealer gave you $2,000 for your used car as a trade-in and you are purchasing another car from them for $10,000. You will pay tax on $8,000).
Dealers use wholesale prices for your trade-in car, but since you will be purchasing another car from them should be some room for negotiations on trade-in price. Don’t hesitate to negotiate, dealerships are generally flexible on Trade-in prices as you will be buying a new car from them which brings them higher profits.
3. Selling Your Car Using Consignment Sales
In short what Consignment sale is: you enter a contract with a dealership granting them rights to advertise and sell your used car. There are several methods to agree on a consignment contract. Usually, a minimum sale price has to be established before hand between you and dealership which will take your car for consignment.
Details on consignment contract as described by OMVIC (Ontario Motor Vehicle Industry Council).
Dealer will use their facilities to sell your car. When vehicle is sold they will charge expenses and their fee, giving you the rest. It’s not that easy and is somewhat a rare occurrence, not many dealers nor people bother to do consignment sales.
Consignment sales are mostly common with classic cars and other specific type vehicles, upper luxury and/or very expensive ones. Consignment helps in situations when you have a rare or expensive car to sell (a Ferrari or an old classic car for example).
Dealers have a larger market reach, especially if dealership specializes on type of vehicle you need to sell and can even interact internationally to find a market for it.
Also, consignment contract usually allows owners to set their own selling price. Owners will have final say whenever to sell it or not at a lower price than previously decided. If you have a rare vehicle, classic or very expensive one then consignment sales are worth exploring.
4. Selling Your Car Privately in Ontario
Private sales are the best way at bringing you more money for your car. It can be stressful experience but if you don’t mind time and effort required, you will get the most out of your used car.
There are no cutting corners though when it comes to private sales. You will be confronted with paperwork, cleaning, fixing, vehicle history, certification and dealing with strangers. Anyways, if done properly selling your used car yourself (or privately) should be rewarding.
If your first thought is “How to sell my car in Ontario”, second thought should be “I need to clean it”. Making your car presentable is most important aspect of selling a car. So, make sure to clean up your car prior to putting it for sale. If you don’t have time to clean it yourself, pay to get clean it professionally. Either way cleaning your car is crucial and has to be done.
More details on how to make your car presentable for sale: How To Clean Your Car.
Obtain a UVIP (Ontario Used Vehicle Information Package)
Ontario Used Vehicle Information Package (or UVIP) is an obligatory document when selling your car. You need to obtain UVIP report prior to selling your car, will come handy latter on. UVIP has detailed information regarding previous vehicle history, odometer readings, past owners and Lien information.
Cost of UVIP is $20 and can be purchased in person at a Ministry of Transportation location or can be order online. If you order it online, it might take about 7 days to be mailed to you. You can order UVIP form Ministry of Transportation website. Payment accepted are: Visa, MasterCard and Interac Online.
UVIP will help you sell your car faster as it will show you have nothing to hide and are transparent about past history of your car. Extended information on: Used Vehicle Information Package.
Safety Standard Certification Ontario
You can try to sell your used car “As-Is” “Where is”, but usually it will take a long time. Likely not worth your time and efforts to try selling your car “As is”. People generally do not like taking higher risks of buying a used car with unknown mechanical condition.
Spend what is needed and obtain a safety certification from your mechanic. However, safety certification is valid for 36 days. If you do not sell your car within that period of time, you will have to pay again to get another one.
One way to go around it is to certify your car after selling it. Advertise your car as certified and obtain safety certification after you make a deal with someone to sell it.
Safety When Selling a Car
If you are going to sell a car in Ontario (Toronto) safety should come first. Be aware there are a lot of threats lurking out there, preying on private sale listings. Curbsiders and Scammers are some of those threats, click on links for details on what they are and how they operate.
Always speak with people over phone prior to appointments. You will get a general idea of their personality and understand who you will be meeting latter on.
Vehicle ownership
Vehicle ownership should be transferred from your name into buyer’s name when you sell your car. Do not let them drive away while your car is still registered under your name. Go with buyer at a Ministry of Transportation location in Ontario. Complete vehicle ownership transfer, conclude sale of your car and money exchange at the same time while being there. Details on Ontario Vehicle Ownership transfer.
A clear example on this article from CTV on why you do not give your car and vehicle registration to a buyer and let them drive away while vehicle is still registered under your name: Ontario Man Warns Others.
Do not go for a test drive alone if you can help it, have a friend or family member with you. You don’t know who you are dealing with and safety should come first when dealing with strangers. Do not set up appointments at night, never. Deal with people only during daylight and preferably in public areas.
Personal checks can be cancelled or blocked easily. Never accept a personal check, there is no need to take a chance. Accept payments only in cash or certified funds.
How to Price Your Car
Beware that when you list your car for sale you will enter a competitive market. Price your used car accordingly to market or you will have a hard time selling your car. Do not underestimate other cars or overestimate yours.
Make sure to price your car similar or close to other cars of same model/year/mileage listed for sale. If you think your car is better and price it significantly higher you will have very few people interested.
First thing people check when searching online is: price and mileage, and rightly so. They can’t tell condition of a car from an online listing and they will reasonably assume low mileage equals a better car. Cars priced accordingly or cheaper than market will normally get more offers. Therefore, price and mileage are primary initial considerations which attracts people towards a used car.
Check online vehicle price estimators like Kelly Blue Book, Canadian Black Book. Using online estimators will give you a general idea what your car is worth. However, you have to be careful as online value calculators offer Wholesale and Retail prices which are different. You should look for Retail values only as wholesale prices might be substantially lower than what your vehicle is worth on retail side.
How to Sell My Car in Ontario: Advertising
If you exonerated all options mentioned on sections above and decided to go ahead selling your car privately, use local advertising sites to advertise Kijiji, Facebook MarketPlace, Craigslist. These advertising sites are all free.
Start by taking plenty of photos of interior and exterior. Postings with a phone number get more responses as people generally feel more comfortable when they talk to seller directly. Also, communicating directly over phone make it easier to ask questions and express concerns one might have when buying a used car, rather than using text or e-mail.
In any case, if you prefer writing instead of talking over the phone, texting is better than e-mail. E-mail can be anonymous while phone numbers are easily traceable, if need be.
Do not write a novel in advertising when selling your car, won’t help much and can complicate things. Properly describe model, condition and options of your used car but be precise and simple. List brand and model, mileage, transmission type, interior and exterior color and general condition of your car.
Do not bother answering to anyone who wants to mail you a check, are out of country, mention shipping companies, offering to pay more than asking price. These are all scams, trying to take advantage and steal from people who are trying to sell their cars privately.
If you have an Estate car make sure vehicle is not under financing and if it is financed, loan has to be paid in full prior to advertising for sale.
Details on How to Sell An Estate Car in Ontario.
Advertising Online: Pictures
One common mistake people usually make is to take dozen of exterior pictures and completely neglect interior pictures. Do not neglect interior pictures. Interior is very important, if your car is a luxury model, take pictures of navigation, leather seats, backup camera, etc. People like gadgets, the more the better and you will raise your chances of selling your car faster.
Make sure to clean your car’s interior prior to taking pictures. People usually want to distance themselves for previous owners when buying a car. After all they are buying a “new car” or least is new to them and they want it to look as close to new as possible. It’s a psychological thing, a clean car looks lightly used and a dirty car looks heavily used.
Vehicle History Report Ontario
People always ask for vehicle history when buying a used car, especially accident history. It’s normal as most prefer to buy a used car which has not been involved in accidents or collisions. In any case, if your car has been involved in an accident then be upfront about it.
Provide documentation, explain what kind of damage, where it was repaired and pictures regarding accident (if you have any). Let the buyer make their own decision.
Dealers need to provide a vehicle history report when they sell a used car. Private sellers don’t have to and you don’t need to provide a vehicle history when selling your car privately.
However, providing a history report shows you have nothing to hide, makes people confident and help you sell your car faster and easier. Carfax provides a detailed vehicle history report, costs about $40 and can be purchased online.
1: Car Buying Companies (SELL MY CAR)
2: Trade-In
3: Consignment
4: Private Sales
More details on: Selling Your Used Car Privately in Ontario.
