There are three primary ways to sell your car in Canada: Privately, to a dealer, or online. This complete step-by-step guide to selling your car in Canada covers all three options.
Note this guide is generalized to apply across the country, but specific requirements such as paperwork or your legal obligations differ from one province or territory to the next. Please check our provincial guides for more information on these aspects of selling your car as they pertain to your province of residence.
How to Sell Your Car in Canada
- Preparing Your Car for Sale: A Checklist for Success
- Determining the Value of Your Car: Tips for Getting the Best Price
- Selling Your Car to a Dealer
- Selling Your Car Online
- Selling Your Car Privately: How to Create an Effective Ad
- Negotiating a Private Sale: Tips for a Successful Transaction
- Transferring Ownership: A Step-by-Step Guide
- Conclusion
- Frequently Asked Questions (FAQs)
Preparing Your Car for Sale: A Checklist for Success
Before you list your car for sale, it’s important to take a few steps to get it ready. Your car will draw a higher price if it looks good and runs well.
Get the car serviced
If the car has any outstanding maintenance, warranty work, or repairs, it’s important to have this addressed before listing the car for sale. If it’s not feasible or too expensive to have any issues fixed, remember to factor that into your asking price.
Get the car cleaned
Whether you do this yourself or pay a detailer to do it for you, giving your car a thorough scrub inside and out will help it look more appealing to potential buyers. Don’t forget to clean the engine bay—buyers will notice if it looks like you’ve never cracked open the hood! Don't miss our full guide on how to wash your car by hand.
Take a set of photographs
If you’re selling privately, you’ll need photos to add to your vehicle listing. You don’t need any special equipment for this: a smartphone will do the job. To get the most flattering pictures, choose a bright but overcast day and a neutral background with no personally identifying details. Get a few different angles, showing the full car as well as close-ups of any special features. Be sure to take pictures of any imperfections as well, and grab a photo of the odometer to prove its current reading.
Gather the necessary documents
In every province, you’ll need a copy of the vehicle ownership certificate as well as your province’s version of the ownership transfer form. Most provinces include this as part of the ownership certificate. In Ontario, you’ll need to pick up a used vehicle information package (UVIP) from ServiceOntario before initiating the sale, while other provinces may require you to order forms such as liens searches. Some provinces require the seller to get a safety inspection and a safety standards certificate before selling the vehicle. If there are any problems with the vehicle you don’t intend to fix or if the car is not in driveable condition, you’ll need to declare the sale as-is and draft paperwork for the seller to sign to protect yourself from future liability. Optionally, you may also wish to gather your car’s service records as many buyers will ask for them, and you may also want to order a vehicle history report to offer to potential sellers for their peace of mind.
Determining the Value of Your Car: Tips for Getting the Best Price
Whether you’re planning to sell your car yourself or offer it to a dealership for sale or trade-in, it’s important to have an idea of what your car is worth so you know you’re getting a fair deal.
Several factors contribute to the value of your vehicle. The model year, make and model, odometer reading, overall condition, and even the colour can affect what your car will draw on the used vehicle market. To get a feel for what your car may be worth, you can consult a used vehicle valuation reference guide including CarGurus Instant Market Value tool, or check used vehicle listing websites that are popular in your area to see the asking price of other nearby cars with similar make, model, model year, and odometer readings. Remember to be realistic as you browse these listings and bear in mind that the exact odometer reading and condition of your own car may affect its value.
Selling Your Car to a Dealer
It’s important to remember that a dealer will always offer you less than the prices you’ll see on private listing websites. Dealers buy your car to make a profit, and they also take a lot of the work of selling your car off your plate. If making the maximum profit possible is an important factor for you, selling privately will be more work, but it may be the better option.
Selling Your Car Online
More recently, a third option has emerged, which is selling your car online. If you go this route, a company representative will make an appointment with you to appraise your car, list it for you, and then offer you the best price they receive and take care of the paperwork and vehicle pick-up. CarGurus offers this service in Canada. Learn more about the CarGurus Sell Your Car service.
Selling Your Car Privately: How to Create an Effective Ad
If you decide to sell your car on your own, you’ll need to create an advertisement. In Canada, the most common websites for private classified listings are Kijiji Autos, Facebook Marketplace, and AutoTrader. These websites are likely to get your ad the most visibility, which is an important factor in getting you the best possible price. Also, Craigslist and eBay Motors are still around and offer alternative options.
Here are some tips for how to write an ad for your car:
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Include the most important details. You’ll need the make, model, model year, and odometer reading. Listing the trim level, transmission type, and whether it’s front-wheel drive (FWD), rear-wheel drive (RWD, or all-wheel drive (AWD) are all key features buyers will actively search for. Fit as much of this information into the headline as you can fit within your chosen site’s character limits.
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Be as descriptive as possible. You can’t provide too much information. If your car has features similar cars don’t such as heated seats or smartphone integration, be sure to mention it. If the car gets good fuel economy, definitely point this out. If you have service records to offer on request, say so. But don’t forget to mention any modifications you’ve made or any potential problems, too: this will show that you’re an honest seller and will help build trust with potential buyers, and it may also keep you out of legal trouble.
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Check if any warranties still apply to the car and whether they’re transferrable. If so, demonstrate added value by including that information in the ad.
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Explain why you’re selling the car. This is another element that demonstrates openness and can help build buyer trust.
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Set out your payment terms. Be very clear about the asking price: ads that say “Please contact” get less engagement than those that list a price up front. And be consistent with your price across platforms: potential buyers may not trust you if they spot different prices on different sites. Communicate whether your price is firm or negotiable, and you may also wish to say you’ll accept a best offer if you don’t mind negotiating with low ballers. You should also state what forms of payment you’ll accept. We’ll talk about how to decide on that in the next section.
Negotiating a Private Sale: Tips for a Successful Transaction
When selling your car, you’re likely to field multiple inquiries from interested buyers. Here are some tips to help this process go smoothly:
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Have answers ready to the most frequently asked questions. A savvy buyer will ask if you have service records, so be sure to have these ready. You may also wish to have proof that there are no liens on the vehicle such as an Ontario UVIP or a vehicle history report. Some sellers choose to order a safety inspection even if it’s not required in your home province, but most buyers will view these with skepticism and want to have the car inspected on their own.
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Protect yourself and keep your personal information private for as long as possible. You’ll need to give an eventual buyer your address as proof of ownership, but it’s a good idea to arrange an initial meeting during the day and in a busy public place such as a coffee shop parking lot. Bring a spouse or a friend so that you’re not attending the encounter alone.
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Be prepared to allow potential buyers to take the car for a test drive or a safety inspection. Ask for some form of security to ensure the buyer needs to return with the vehicle, such as a health card or house key.
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Expect a couple of rounds of back-and-forth before you and the buyer land on an agreeable price. Since you’ve done the research in advance to know the fair market value for your vehicle, use that same information to set an absolute minimum price you’re willing to accept for the vehicle, and stand firm on that limit.
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Don’t be afraid to walk away from a potential sale if a buyer isn’t negotiating fairly, doesn’t arrive punctually to arranged meetings, or otherwise treats you with disrespect.
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When accepting payment, experts advise never to accept personal cheques as they’re often used to commit fraud. E-transfers are somewhat safer, but unless you’re selling for a low amount, you likely can’t receive the full amount at once, which can also cause issues. The safest forms of payment to accept, and the most highly recommended, are cash, certified cheques, or bank drafts.
Transferring Ownership: A Step-by-Step Guide
Once you and a buyer have agreed on a fair price, you’ll need to complete some documentation to finalize the transfer of ownership. The exact steps and documentation vary by province. Here’s a guide that explains the steps of transferring ownership:
Complete the Bill of Sale
In most of Canada, you’ll need to complete a Bill of Sale. If you prefer, you can create this document on your own. It will be valid as long as it lists the required information in your province or territory. This typically includes the date of the sale, full names and contact information for the seller and buyer, the Vehicle Identification Number (VIN), model year, make and model, the agreed-upon price, and buyer and seller signatures. Printable templates are available online that will make this easier. In Ontario, the Bill of Sale template is provided in the UVIP. In B.C., the Transfer/Tax Form takes the place of a Bill of Sale.
Complete the Transfer of Ownership document
This is usually attached to the vehicle ownership certificate. The buyer completes this and hands it over to the seller.
Complete an As-Is declaration
If an As-Is declaration if required, write this up and have it signed and dated by both parties.
Remove licence plates
The licence plate(s) will need to be removed from the vehicle by the seller, except in Newfoundland and Labrador (plate(s) transfer with the vehicle in that province).
Notify the motor vehicle registration authority
Notify the motor vehicle registration authority in your province that the vehicle is changing ownership. Depending on the jurisdiction, this may need to be done by the seller, the buyer, or both parties.
Cancel your insurance
You’ll need to cancel your insurance on the vehicle and, if applicable, transfer it to your new vehicle. It’s up to the new owner to secure insurance for the vehicle once ownership has been transferred. In some provinces, particularly those with public automobile insurance, this will be processed automatically upon registration. Proof of insurance is often required before the vehicle can be registered in provinces with private insurance.
Fees
As a seller, you do not need to pay any fees when you sell a vehicle apart from any insurance cancellation fees that may apply. The new owner will need to pay a fee to register the vehicle in their province or territory. In locations with provincial sales tax, the buyer will be expected to pay this at the time of registration as well. (Alberta does not have a provincial sales tax, so this cost does not apply.)
Conclusion
By following these tips and step-by-step guides, you’ll be able to make the right decision for you about how to sell your car and get yourself the best deal. Overall, be honest and upfront, be realistic, be meticulous in following the processes carefully, and don’t be afraid to walk away if something doesn’t feel right to you.
Now that you’ve got the information you need to feel confident about selling your car, it’s time to get started!
Frequently Asked Questions (FAQs):
Do I need to disclose any issues with the car when selling my car?
It’s important to be honest and disclose any issues your car may have when selling your car. If a buyer finds you misrepresented the condition of the vehicle when you sold it, you could be in for a lawsuit or other legal liabilities.
How do I handle test drives when selling my car?
When letting your vehicle out for test drives, it’s a good idea to meet during the day in a busy public place, have a second person with you, and take some form of security from the interested buyer like a set of house keys or a health card to ensure the person needs to return to you with your vehicle.
How long does it take to sell a car in Canada?
The process of car selling in Canada can take a few minutes to a few weeks, depending on whether you choose to sell it to a dealer, sell it online, or list it privately. Selling directly to a dealer is usually the fastest way to sell your car, but it’s also the least profitable. Selling your car privately will usually get you the most money for it, but the process can take a long time and create more hassle.