How to Sell a Car in Canada: Our Definitive Guide
How to Sell a Car in Canada: Our Definitive Guide
Posted on August 29, 2023
There is a chronic shortage of used cars, not only in Canada but all across the world. If you are thinking about selling your car there are some important steps that you should follow. Our Milton car loan team explains a basic yet helpful guide to selling a car in Canada. This is true whether you sell your car to a dealership or privately.
Make Sure There Are No Liens Against Your Vehicle
This may seem like a no-brainer, but some people try to sell their car before the loan on it has been repaid.
You are allowed to sell the car, provided the holder of the lien, in this case the loan provider, is repaid in full before the transfer of ownership can take place.
Working Out The Fair Market Value Of Your Car
It can be hard to figure out what your car is worth, especially with consumers willing to pay a premium even for used cars. There are online resources like AutoTrader that can give you some insight into what your car may be worth.
You should probably take your car over to your local dealership and have them provide a professional appraisal. There is no cost or obligation and at least you will know what your car is worth in today’s market.
Finding Prospective Buyers
You are probably thinking about using Kijiji or some other platform to sell your car, but that could end up being a complete waste of time and money.
For the most part (there are always exceptions to all rules), the people on these platforms are not serious buyers. They will try to make low-ball offers with the hopes of buying your vehicle and then flipping it for a profit.
Since these buyers are not genuine or even local you should shift your focus to selling to people in your area.
Another potential source of customers is social media, at least you can target people in your community. The challenge with social media is that like the other sites, you are not going to get very professional buyers who are serious about buying used cars.
Even if the buyer seems legitimate, they may not have the cash on hand to buy the car from you. While you may be tempted to take a partial deposit now and wait for the balance later, there is no guarantee that the deal will go through.
Work With Local Professionals
You can do yourself a massive favor and instead of dealing with all of the headaches of trying to sell the car on your own, why not just sell it to the dealership that did the appraisal?
Since the dealership has to make a profit, you will not get 100% of the fair market value. You will get enough to make it worth your while though. Also, the dealership has the funds available to close the deal right then and there.
Now that you've read our step-by-step guide to selling a car, you could think about buying a new one from your local dealership, consider using your current car as a trade-in to get the best possible value for the vehicle!
If you're ready to sell your car in Southern Ontario, we'd love to buy it! simply fill in the form below to get started.