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Important Information when you Sell a Car in Canada

Important Information when you Sell a Car in Canada

The prices of used cars are at all-time highs in Canada and around the world. There are many reasons why this is happening but we are going to focus on how you can safely sell your used car.

 

Getting your documents in order

 

Are you legally able to sell your car? This is not a rhetorical question but one that needs to be answered. Has the loan on your car been paid in full or is there still a balance outstanding? If your car is only a few years old, you could still owe money on it.

 

You cannot sell a car without first paying off the outstanding debt. This is called a lien, when the person buying your car tries to register it, they will be denied until the debt has been repaid and the lien removed.

 

The lender who gave you the loan will usually send you a letter saying the lien has been removed after the car has been repaid in full. If you do not have this letter, you can ask for a copy from the lender.

 

What is the condition of your car?

 

Is your car in good mechanical condition or was it involved in an accident and had serious structural damage done to it? Whatever the condition of the car, you should always be transparent when advertising and selling it. There are people out there who try to sell a car that isn’t roadworthy as in “mint condition” and while you could press your luck, do yourself a favor and always be transparent and have the service record of the vehicle available for prospective buyers.

 

Finding qualified buyers

 

While on the subject of finding buyers, we need to differentiate buyers from qualified buyers. A qualified buyer is someone who not has the desire to buy your vehicle but also the capacity.  You need to understand the mindset of these qualified buyers so you can get your used car advertisement in front of them.

 

Pricing your used car

 

This is a tricky part of the process, you want the maximum amount of money possible for your car, but if you price it too high you may not get any interest at all. On the flip side, if the price is too low, it will send red flags to prospective buyers and eat into your profit.

 

You can use websites like Kelly Blue Book and AutoTrader for some insight on pricing trends.

 

Best way to sell your used car

 

Instead of going through the hassle of advertising your car and dealing with buyers who are not serious, you can simply go to a local dealership and let them buy your car.

 

The price the dealership offers may not be 100% of the current market value, bear in mind the dealership is going to resell your car and need to make a profit.

 

The upside of selling your car to a dealership is they can pay cash on the spot, so you can get money for your used car and bypass all of the hassles associated with selling.

 

For any questions or concerns, please don't hesitate to contact us here!

 

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