Thinking about selling your car privately in Ontario? Taking this process into your own hands maximizes your profit and gives you complete control over the transaction. However, several factors go into the private sale of a vehicle, leaving the seller overwhelmed. Here at isure, we want to take the guesswork out of the transaction for you. We’ve outlined the best practices on selling a car privately in Ontario and have answered some common questions along the way.
How to Begin a Private Car Sale
Over the past few years, deciding to sell used vehicles has grown in popularity. But few understand how much work goes into preparing your car for sale. Before listing, it is essential to establish a few key details:
- Timeline: How quickly do you want or need to sell the car? Are you looking for a quick sale or the right offer?
- Preparation: Will you repair any existing damage or sell “as is”?
- Listing: Where are you going to list the vehicle for sale? What are the best websites to choose from?
- Vehicle value: Have you considered your listing price? How much would you like to receive, and how little are you willing to settle for?
Details to get in order
Before entertaining offers, there are a few details that need to be taken care of first:
- Used Vehicle Information Package (UVIP): This package contains the vehicle details, including the year, make, model, colour, body type, cylinders, and power.
- Make sure that the Vehicle Identification Number (VIN) on your car matches the number on your permit, a.k.a. your green ownership document.
- Check to ensure the vehicle has no money owing on it.
Once you have cleared the vehicle of any liens and established that the paperwork is in order, you can list your vehicle.
Listing your vehicle
Once you have decided to list privately and have the UVIP in order, you can list your vehicle. Make sure to:
- Prepare your vehicle for sale, as having it cleaned/detailed.
- Be sure to snap photos to emphasize your car’s best features.
- Set a competitive price to sell quickly and for the best amount possible. Evaluating your car’s worth is crucial when determining the asking price. Start by researching the market value of similar make, model, year, and mileage vehicles. Websites like Kelley Blue Book, CARFAX, or Canadian Black Book provide a comprehensive valuation based on various factors.
Benefits of a Private Car Sale in Ontario
Let’s explore the benefits of selling your car privately:
- Profit: You can receive a higher sale price than trading it in at a dealership.
- You’re in the driver’s seat: When you sell privately, you can negotiate a better deal and retain the vehicle’s full value. Plus, you can take your time finding the right buyer and avoid the hassle of dealing with dealership trade-ins.
- Setting the price: You can determine the value of your vehicle based on its condition, market demand, and other factors. That way, you can earn more money from the sale by asking for a higher price.
- Showcase your vehicle: Now that your car is ready and priced competitively, you’ll want to market it effectively. Online platforms are popular for advertising your vehicle to a broad audience. Websites like AutoTrader, kijiji.ca, and Facebook Marketplace invite you to create detailed listings with multiple photos and descriptions. Ideally, highlight your car’s unique features and provide accurate and thorough information to attract serious buyers.
- Get personal: Another advantage of selling privately is establishing a personal connection with the buyer. When you meet potential buyers face-to-face, you can answer their questions, provide additional information, and build rapport.
How To Start the Private Car Sale Process?
Most Canadians start their used car search online. Canadian car shoppers spend 63% of their vehicle research time online, and 42% visit a listing site first.
- Posting your vehicle on popular listing sites, like AutoTrader, Facebook Marketplace, Craigslist, Kijiji Autos, eBay, and Used.ca, will put you in front of a large pool of potential buyers.
- Once you have found your buyer and have a mutually agreed upon sale price, you must hand over the UVIP, completing the information on the package.
Thankfully, a Bill of Sale is included in your UVIP. Be sure to fill in the VIN, make, model, year, power source, body type, colour, price with relevant taxes, and the buyer’s information.
- You must also complete and sign the Application for Transfer on the back of the “vehicle portion” of the permit (registration) and give it to the buyer. You will also need to write the name and address of the buyer, record the current mileage and date of sale, and sign the form yourself. Keep the “plate” portion of the ownership for your use.
- Remove your licence plates from the vehicle. Remember, plates travel with the driver, not the car. Ensure you keep your permit’s “plate portion” (ownership). You will need this to register your plates on another vehicle.
- Transfer funds. Cash and bank drafts delivered in person are the best and most secure forms of payment when privately selling your used car. Avoid personal cheques or wire transfers, as these are more susceptible to fraud.
What Can Affect Car Value?
Factors, such as the vehicle’s history, mileage, and condition, are some of the more obvious determinants of a car’s value. However, other factors have a bearing on the vehicle’s value:
- Colour
- Non-smoking owner
- Service history & work required
- Extended warranties
- After-market features
- Extras, like winter tires
- Recent replacements (i.e., battery, brakes, windshield, etc.)
- Reliability and safety ratings
- Demand for used cars
Is Trading Your Vehicle the Better Option?
While trading your vehicle back to the dealership may seem like the easier (and safer) option, be aware that you may not get as much money for the car as you would if you sell it privately. Any little scratch, dent, or upholstery stain will need to be fixed, and the repair cost will likely impact the trade-in value and be deducted from your offer. Visit several dealerships and compare offers when you’re wondering how to sell a car in Ontario. While selling privately may require more work on your part, the increased profits from putting in the work to advertise and negotiate for yourself can translate to higher profits.
Next, you take or fax the bill of sale to a ServiceOntario centre, along with a safety certificate and registration papers. If you decide to sell to a relative, you’ll also need a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario.
Do You Need a Contract for a Private Car Sale?
Absolutely. If you are wondering how to sell a car in Ontario, well, in simple terms, you are making a legal sales transaction. A bill of sale is a type of sales receipt. For private sales, it details the transaction between a buyer and seller. In the case of a car sale, it acts as proof of ownership transfer. They are both sales receipts and proof of purchase.
What does listing the car “As Is” really mean?
The term “As Is” on a bill of sale means you are selling the car in its current condition. No warranty or quality guarantee is offered. As the seller, you are not liable for issues with the vehicle once the sale is completed. If you list the car “As Is”, the seller will expect the vehicle to require work. As a result, this will also mean they will expect to pay less than the market value. Some of your negotiating power will be lost with cars listed this way, so adjust your expectations. For those in the market for vehicles that don’t mind a little work, it could be a win/win for both the buyer and the seller.
Finally, you’ll also need to adjust your car insurance policy. This will release you from any liability associated with the car. Let your isure broker know you no longer own the vehicle and no longer need coverage. They may want details, which you have in all the documents you’ve kept throughout the process. Be sure to obtain car insurance for your new vehicle if you purchase one!
Selling a Car Privately: Conclusion
The question of how to sell a car in Ontario may seem daunting. But with some research and preparation, selling your vehicle can be a more lucrative option. Still have unanswered questions? Contact your isure broker for more information surrounding selling your car and how your car insurance rates will be affected.
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