How to Sell Your Old Car in Ontario?

If you think that just by uploading a few latest pictures of your car online, you’ll get someone to buy it in the next few days, you couldn’t be more wrong. Selling a car is not that easy. 

Finding the right buyer can sometimes be a daunting task. However, if done right, selling your used car can be a rewarding experience. 

In this blog, we'll walk you through the step-by-step process of selling your old vehicle, from preparing it for sale to negotiating the best price. 

 

Here are the steps to follow in order to sell your old car in Ontario:

 

1. Find your car’s worth

To sell your vehicle successfully, it's crucial to find a reasonable and attractive selling price. This means pinpointing a fair value that will pique the interest of potential buyers. Overpricing might deter buyers while underpricing means leaving money on the table. 

The best way to determine your car's market value is by using trusted third-party sites like Canadian Black Book, Kelley Blue Book, or CARFAX's Value Range Estimator. Simply provide some key information about your car, such as its make, model, and year, and you'll receive a market value range that can guide you in setting an appropriate price.

If there are any flaws or mechanical issues, be sure to include them to get an accurate value range. If your vehicle is still under a loan, determining the loan balance becomes the crucial starting point. This balance will play a significant role in deciding if selling the car is a viable option. If the car's value exceeds the loan balance, you can proceed with the sale without being burdened by any outstanding debt.

 

Read: How to Trade in a Car with an Outstanding Loan

 

2. Determine the asking price

Setting the right asking price for your vehicle is crucial to attracting potential buyers and ensuring a successful sale. 

Begin by establishing a bottom-dollar price, which represents the absolute minimum amount you're willing to accept for your vehicle. This figure should account for paying off any existing loans on the car and having enough funds to purchase a replacement vehicle. 

Keep in mind that the asking price is not necessarily the final selling price. Most car buyers will try to negotiate, so it's essential to leave some room for potential bargaining. Striking the right balance in your asking price will make your vehicle more appealing to potential buyers and increase the likelihood of a successful and satisfactory sale.

 

3. Prep your vehicle for sale

While no used car is perfect, it's essential to present your vehicle in the best possible condition to instill confidence in potential buyers. Start by addressing any lingering repair needs or giving your car a thorough cleaning. This will portray your vehicle as well-maintained, giving buyers peace of mind. 

Consider investing in improvements that truly enhance your car's appeal. Many sellers opt for professional interior and exterior detailing, which might cost a bit upfront but can significantly increase the vehicle's value, depending on the market's demand.

While aesthetic improvements like addressing faded paint, scratches, and dents can attract buyers, extensive bodywork can be costly. If the damage doesn't compromise safety, it might be best to be transparent about it in your ad, allowing potential buyers to incorporate the information into their decision-making process.

 

Read: 10 Signs of Poor Car Maintenance

 

4. Get the documents in order

Gather all the necessary documents related to the vehicle, including the registration permit and service records. For those in Ontario, obtaining a Safety Certificate is mandatory for transferring ownership. Providing a vehicle history report like Carfax can also be beneficial, as it proves the car's accident-free history and verifies the odometer reading. 

When selling your used car in Ontario, Canada, it's essential to provide a Used Vehicle Information Package (UVIP). The UVIP is a comprehensive document that contains key details about the vehicle, including:

• Vehicle specifics such as the year, make, model, color, body type, engine, and power.

• Vehicle's registration history.

• License plate information.

• Details about any existing vehicle liens.

• The average wholesale value of the car.

• Information related to the retail sales tax.

• Vehicle's condition and mechanical fitness.

• Whether the vehicle is classified as salvage.

• Furthermore, the UVIP includes a bill of sale section, which is crucial for finalizing the transaction. To obtain the UVIP, you can easily order it online through your province's official website.

 

5. Take high-quality photographs of the vehicle

Images are often the first thing buyers look at, and they play a crucial role in building confidence and generating interest. While professional photography is not necessary, taking detailed and honest photos can significantly enhance your listing.

Be sure to capture the vehicle from all angles, both inside and out. Include at least one clear photo of the odometer to showcase the car's mileage accurately. Focus on highlighting key details, such as any luxury or specialty features.

 

6. List your vehicle on online selling websites

In Ontario, when it comes to buying and selling used cars, several popular online platforms stand out, including AutoTrader.ca, Facebook Marketplace, Craigslist, and Kijiji. These websites offer immense exposure to potential buyers, making them ideal choices for listing your vehicle. One of the significant advantages of using these platforms is that they are entirely free. You can list your car for sale without any upfront fees, and they won't charge you a commission when your vehicle gets sold.

Moreover, if you want additional visibility, these platforms also provide options to pay for boosted or promoted listings. This can help increase the visibility of your listing and attract even more potential buyers to your ad. 

 

7. Schedule a time for test drives or in-person visits

Now comes the important stage of arranging in-person visits and test drives with potential buyers. Schedule a 30- to 40-minute meeting, giving the buyer the opportunity to view and test drive the vehicle.

Before the meeting, it's wise to prepare a liability waiver that holds the test driver responsible for any damages that may occur during the test drive and have the buyer sign it. Once you meet with the potential buyer, request their driver's license, and take a picture for your records. 

Sometimes, buyers might request to take the vehicle to their preferred mechanic for a quick inspection. This is a reasonable and typical request that can help build the buyer's confidence in the purchase.

 

Read: What to Look for During a Test Drive?

 

8. Negotiate and close the deal

Once the buyer is interested and negotiations begin, share your asking price and be willing to counter their offer. Remember your bottom-dollar price, settle on a price, verify the buyer's payment method, and complete the necessary paperwork for a smooth ownership transfer.

 

Read: 7 Tips to Negotiate With a Used Car Dealer

 

In conclusion, selling your old car in Ontario requires careful planning and execution. By following the above-mentioned steps, you can make selling your old car a rewarding and satisfying experience.