Selling your used car privately may feel intimidating. While it’s true that there are a lot of steps involved and some patience is required, it can be rewarding. The process you’ll need to follow is the same for every transaction, and knowing what to expect can take a lot of stress out of the equation.
So, for those who want top dollar for their used vehicle and are prepared to go down the private sale route, here’s a step-by-step guide to how it works.
How to Sell Your Car Privately in Canada
- Step 1: Prepare Your Car for Sale
- Step 2: How to List Your Car For Sale
- Step 3: Completing the Sale
- Other Ways to Sell Your Car
Step 1: Prepare Your Car for Sale
Complete any outstanding repairs
Any dents, chipped glass, or other broken parts should be repaired before listing the vehicle for sale. If this isn’t feasible, be prepared to lower the price since the buyer will need to take on these expenses after the purchase.
Clean the car
You can wash your car with a bucket, a rag, and a vacuum, or you can take it to a car wash or pay a detailer. Either way, you’ll want to make sure it’s as clean as possible inside and out. A clean car makes a good impression, so investing in this is worth it. Don’t forget to clean the engine bay. Some buyers may suspect the car hasn’t been well-maintained if things look ignored under the hood.
Take good photographs
You don’t need to pay someone or have any special equipment to take good photographs: a modern smartphone will do. A bright but overcast day will provide the most flattering lighting and will help with capturing details. Choose a neutral background such as a park or a stand of trees to remove any distractions, and be sure no identifying details such as house numbers can be seen in the photos. Snap pictures of the exterior and interior from a few different angles, showing the full car as well as close-ups of any special features. To get a wide shot of the full dashboard, sit in the back seat and shoot over the driver’s headrest. Be sure to photograph any imperfections as well, and get a picture of the odometer as proof of your car’s current mileage.
Step 2: List Your Car For Sale
Gather important information
You’ll need to know the year, make, model, and trim of your vehicle, plus any optional equipment it has that may increase its value (for example, a sunroof). Confirm the current odometer reading. Gather all the paperwork you may need if your vehicle is still under warranty and all of your service records. Ensure you have documentation of the accident and ownership history and proof that there are no liens on the vehicle (a vehicle history report such as CARFAX makes this step easier). If you’re in Ontario, you’re required to purchase a UVIP (used vehicle information package) to present to potential buyers, so be sure to get this organized as well.
Set a price
First, learn your car’s value on the used car market. The CarGurus Instant Market Value calculator makes this hassle-free: using the same information you gathered in the previous step, enter a few details and you’ll have a market value within moments. Consider beginning at a slightly higher starting price if your type of vehicle is in high demand, in exceptionally good condition, or has highly desirable optional features compared to similar vehicles. Go lower if the car has incomplete service history or requires repairs. In either case, start at a higher price than what you want to receive so there’s room to negotiate.
Create your listing
Upload the information you’ve gathered to your desired listing site, including your photographs. A clear and snappy write-up that gets right to the point will get your listing more attention. Be honest about the vehicle’s accident history and any outstanding repairs your car may need. Buyers will trust you more as a seller if they feel you’re being up front.
Get your car pre-inspected… or not
In some provinces, a safety inspection is required before a transfer of ownership. Some buyers may ask whether you’ve completed the safety inspection for them, while others may be suspicious of one that you provide and prefer to have their trusted mechanic perform it for them. Taking up this expense on your own may identify potential issues and avoid any unwanted surprises, but it’s up to you if you’d rather leave this task up to the buyer.
Step 3: Completing the Sale
Respond to inquiries quickly
Being quick to get back to people who inquire is extremely important for two reasons: responsiveness earns trust, and it might get your vehicle further ahead in their line-up of potential purchases.
Be cautious with your vehicle and your information
You’ll need to provide your phone number in the listing, but never give away your home address. Instead, offer to meet for test drives in a neutral location, and take someone with you. Some sellers choose to ride along for the test drive while others may use a device such as an Apple AirTag to track the vehicle. Photographing the potential buyer’s driver’s licence or asking for a liability waiver to be signed are other ways to protect yourself that you could consider.
Be prepared to answer questions
Any buyers who are doing their own due diligence will ask you about the vehicle’s accident, service, and ownership history. Buyers may also ask why you’re selling the car and whether you’ve had any issues with it. Have answers ready for these questions so you don’t hesitate for too long and appear untrustworthy.
Don’t get too invested in one buyer until the deal is done
No matter how interested someone seems, that person could walk away for any reason and then you’ll be back at square one. Don’t be afraid to entertain multiple potential buyers at once. Refusing to hold a vehicle for a buyer is a good policy that protects your own best interests.
Understand you’ll need to do some legwork
In most provinces, you’ll need to complete a bill of sale (and research what information it must include to be valid), remove your license plate(s) and tear off the ownership and plate transfer section of the ownership document, sign off on the portion of the registration document that the new owner will take to the Ministry of Transportation, and visit your provincial licensing authority to confirm the sale and file the paperwork within a prescribed time period.
Negotiate the final price
Once your buyer is interested in your car, that person will likely come back to you with an offer that’s lower than the listing price. Be prepared for some back and forth negotiation, and have an absolute minimum in mind that gives you a fair price and meets your goals (for example, the amount you’ll require as a down payment on the next new vehicle you want to purchase).
Be wary of accepting personal cheques, e-transfers, or wire transfers
Bank drafts or a cash offer are the most secure ways to receive payment as they’re the least susceptible to fraud.
Be patient
You’ll probably need to repeat yourself a lot, and it may take a few rounds of test drives and warding off low-ballers and tire-kickers before you finally close a deal. Take a few deep breaths and know that your patience will have paid off once your vehicle’s new owner drives away in a new car and you have your payment securely in hand.
Other Ways to Sell Your Car
If the idea of selling your car privately doesn’t appeal, you can greatly simplify the process by selling or trading in your car to a dealership, or selling 100% online with CarGurus. You’re likely to get less money for it than you would with a private sale, but you’ll save some time and a lot of effort, which may be a more important commodity for some sellers.
