Now that the weather is finally warming up, it’s the perfect time for selling your car and buying a new one. So, when selling a used car, you need to make the process as smooth as possible.
In Canada, specific steps need to be followed if you want to know how to sell a car. Knowing these steps allows you to avoid any potential headaches and simplify the process. So, whether you’re looking to trade in or sell privately, we’ve got you covered. Let’s get started.
Buying a Used Car: Why Should You Do It?
Buying a used vehicle in Canada can be a great way to save money. While new cars typically come with a higher vehicle pricing, they also lose value quickly. In contrast, used vehicles may be several years old but can still provide reliable transportation.
While some sellers note they are selling a car as is, many used cars come with a warranty, which can provide peace of mind in case of unexpected repairs.
Finally, buying a used vehicle from a reputable dealer can ensure that it has been properly serviced and is in good working condition.
Used Car Prices Canada
The average used-vehicle price in Canada has increased by 38% to $37,768. This is the highest figure on record, and car pricing is primarily driven by increases in prices for SUVs, minivans, and trucks.
These types of vehicles have become increasingly popular with Canadians in recent years and, as a result, their prices have risen accordingly.
Ontario has seen the largest average used car price in Canada, with an average jump of 35.9% to $33,923. With more people moving to Ontario and buying vehicles, the demand for used cars has increased, leading to higher prices.
For anyone looking to buy a used car in Canada, it is vital to be aware of these used car price trends and budget accordingly.
Selling a Used Car
Deciding how to sell is an important first step. There are a few different options for selling a vehicle, each with its pros and cons. For instance, selling through a dealership is often easier and less time-consuming, but you’ll likely get a lower trade-in car value.
Selling a vehicle privately will usually net a higher price, but it can be a lot of work to advertise the car and schedule test drives. So, deciding how to sell a vehicle is entirely up to you and your preferences. To help you decide, we’ll go into more detail in the following sections.
A bill of sale is an integral part when selling a used car. More specifically, it is a legal form of transferring ownership of a piece of property from one person to another.
For instance, a bill of sales in Ontario is a must for sellers of used cars to provide buyers with. After both parties have signed this document, it is a binding contract.
Determine the Car Value
After deciding on selling a used car, you’ll want to ensure you get the best possible price. To do that, you’ll need a car appraisal to determine its value.
So, remember that there are a few different ways if you want to know how to find the value of your car, and one of them is by using Carfax, a free value estimator.
Another great option for determining your car’s worth is Redbook Auto. It is one of Australia’s most comprehensive and highly regarded automotive pricing sources.
Finally, you can contact a local dealership and ask them to price a car. Whichever method you choose, be sure not to base your price on what you paid for it or what you think it’s worth but on the fair car market value.
Selling a Used Car: Trade-In
In Canada, there were around 8,000 used car dealerships in 2021. So, you have a lot of options.
When you trade in your car, the dealership will give you a lower car resale value for the new car because they’re taking your old car as part of the deal.
Dealerships always look for quality used vehicles to add to their inventory, and when selling a car to a dealer, keep in mind that they are typically willing to pay top dollar.
On the downside, dealerships typically offer a lower trade-in value than a car’s private-sale value, but they can also provide peace of mind by handling all the paperwork and legwork involved in selling a car.
In addition, dealerships often have access to national databases that contain information on recent sales of similar vehicles. As a result, they can give you a more accurate estimate of your car’s value than you could get on your own.
How to Sell a Car Privately
If you decide on selling a used car privately, there are a few things you’ll need to do to get the best price possible. So, let’s see how to sell your car privately. First, it’s essential to clean your vehicle inside and out so that it looks its best when potential buyers come to check it.
You’ll also want to ensure all the maintenance is up to date and that there are no outstanding issues that could turn potential buyers away. Taking your car to a car mechanic for a vehicle inspection can help. Once you’ve done everything, it’s time to start advertising your car.
You can do this by listing it on classified websites or local newspapers. When selling a car privately and writing your ad, include all the necessary information, such as the make and model of the car, its year, mileage, and any features or upgrades it has.
Meeting With Potential Buyers to Sell a Car
Before meeting with potential buyers, there are vital things sellers should remember. First, it’s essential to be honest about the car’s condition when trying to sell a vehicle. If there are any known defects or damage, this should be disclosed upfront. Owning a car is not cheap – the monthly cost of owning a car is around $955 in Canada. That’s why people don’t appreciate unpleasant surprises.
Moreover, one of the questions to ask when buying a used vehicle is the warranty, so make that clear to potential buyers.
Second, when selling used cars, sellers should be prepared to negotiate. It’s unlikely that a buyer will pay the full asking price, so it’s important to have some wiggle room in the initial offer. Finally, if you want to sell your car, it’s crucial to be friendly and professional.
People Also Ask
Do I need safety to sell a car in Ontario?
To sell a used car in Ontario, you will need to obtain a Safety Certificate. This is to ensure that the vehicle is safe to operate and that all required safety inspections have been conducted.
The safety inspection must be conducted by a registered repair shop with the Ministry of Transportation.
Can you sell a car to a dealership?
Yes, car selling to a dealership is possible. Dealerships are willing to buy vehicles from individuals for a variety of reasons.
What is the best method to sell a car?
You can use a few different methods for selling a used car in Canada. You can sell it privately or trade-in to a dealer. If you want the best way to sell a used car to get the most money for your vehicle, selling it privately is usually the best option.