Last Updated on April 8, 2020 by Iryna
Last summer I’ve sold my car without the dealer and got $2000 extra. As promised in my New Year’s Resolutions, I am sharing this valuable experience.
The main reason why I’ve decided to write about selling a car privately is to share my experience, bring more clarification to the whole process and maybe to dissolve the fear to do things differently.
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How to Sell a Car
When the time came to sell our used car and buy something larger for more convenient travel, I’ve started exploring the options. There were a few of them.
The easy one was to do a trade-in to the dealership where we would buy a new car. The estimate I’ve received was $3500 for a 7 years old Kia Forte hatchback.
After searching the Internet, I’ve found there are some companies that would come to your house to buy your used car as-is, which means without any technical inspection or repair.
Usually, they pick-up your car very quickly, but there is a price for such convenience. This time the estimate was much lower – $2100.
After checking the regulations on local government site and giving some consideration, I’ve decided to try selling my used car by myself, privately. If that doesn’t work, I can always sell my car to the dealership, right?
How to Prepare Your Used Car for Sale
While selling a car, put yourself in the buyer’s shoes and think over important aspects you would look at as a buyer.
First of all, your car needs to be clean to look attractive. Vacuum it inside, brush with soap and water some old dirty spots in the saloon, wash it outside. Open the doors and let fresh air in to remove some heavy smell in the saloon you might have.
If you have some small exterior scratches, get a touch-up paint from your local dealership and apply to the areas. The paint pen will cost you around $20, and it will help to make your car look more attractive.
Plus, you can include this pen as a bonus to the new owner. To apply it, shake the pen well, and then gently press on it. To determine the right type of paint for your car check the sticker at the driver’s door opening.
Open the hood and clean the dust there. Check for leakage. Change the oil and other fluids if needed.
If you have some damage or cracks that require repair, bring your car to a mechanic and fix them. Usually, people want to get a car and drive it right away without spending time at the car shop. Unless you are ready to cut your price significantly, it’s better to fix some issues before selling a car.
And this is exactly what happened to me. I’ve bumped my front bumper into the snow one year and got a crack in the plastic bumper. The price for repair varied significantly from place to place, but I’ve finally found a good price to fix it and my bumper was like new again.
How to Advertise While Selling a Car
When I was checking for the market price, I’ve noticed people didn’t bother making nice pictures of their cars. Some just posted one or two and a short description.
I think this was one of the main reasons I sold my car within a couple of months – I had really nice pictures! Look at those ads from the dealerships. They have a video, a full description of the car, nice pictures. You need to have the same or similar to advertise your car and stand out!
The best result you will get if you take pictures of your car outside at the natural light using a good quality camera.
I went to the nearest park area, with no other cars on the parking lot, and made lots of pictures from different angles. You want to show the interior, highlight some unique features of your trim, exterior from all sides, trunk to show the space.
If you want to mask your plate number for privacy (similar to what I did in my pictures), you can easily do so in the program Paint on your computer. Just add shape you like and fill it with the color of your choice.
Once your pictures are ready, find the detailed description of the year, model and trim of your used car. You will need this information to post to online advertising platforms.
Where to Advertise a Car for Sale
I’ve listed my car for sale on a few websites including a local site for selling used stuff such as autotrader, kijiji, craigslist. Some websites allow you to list your car for free only for a limited time. My buyer found me through kijiji, by the way.
List all the images you have, a full description of the car, any other information you want to include, plus your contact information. Your phone number included in the ad will be the best way for people to contact you right away to ask questions and book the showing.
I also highly recommend getting a CarProof by Carfax report from the autotrader. The basic option costs around $40. It includes information on car registration, accidents, recalls.
How to Determine the Price of Used Car
When I sold my car, the price was very reasonable according to the market situation. I’ve checked a few websites with used cars for sale for the same model, trim and mileage of the car. Also, take into account the color of your car. Sometimes some color is more popular and more expensive than the others (white, for example).
The most secure type of payment from your buyer will be a certified cheque in your name. I’ve met my buyers a couple of times and I could trust them enough to get cash for the car, with the deposit to secure their intention. So always trust your gut and act as per the situation.
How to Show Your Used Car to the Buyer
During the showing, you’ll need to show the car from all the angles, under the hood and be able to answer all the questions the buyer may have. Bring the necessary documents (UVIP in my case) to show to the buyer.
They will also ask to take your car for a test drive. Make sure to ask for their valid driver’s license and take a picture of it before giving them keys.
Some buyers may come with the mechanic for a quick check on site, or ask you to bring the car to their mechanic’s place. Those checks take time, but they are paid by the buyer as this is their initiation.
I had 3 showings in total before selling a car. You may need less or more time in your case. So if you plan to sell a car privately, be ready to invest some time in the process.
Where You Can Show Your Used Car for Sale
After the ad is placed you will get phone calls from potential buyers to see the car. As you are selling your car privately, there is always a risk associated with such a sale. You don’t know who may be on the other end of the phone line, so precaution is advised.
It’s better to bring someone else with you and meet in public places where people and cameras are.
In my area, for example, police offer a few parking spots at the police station where people can meet with their potential buyer to sell used stuff. And it’s not only for selling a car but other things, for better security of both sides.
I had my car’s showing in the parking lot at the nearby school.
What Documents Required to Sell a Car Privately
It’s best to check the official website of your location for necessary procedures and documents required for selling a car privately in your province or state. Also, check if your used car needs to pass a safety test or emission test.
In Ontario, for example, a seller of the used vehicle must provide a UVIP (Used Vehicle Information Package) and car transfer portion from the ownership document.
Also, the new owner is required to pass the safety test at the certified mechanic, show the proof of insurance and bring their plates to register the car.
If your car is still under the loan, you may be able to transfer the unpaid portion to the new owner. In this case, your buyer will need to pass the credit check. Contact your lender for the details.
What Documents Required to Sell a Car Privately in Ontario
If you are selling a car in Ontario, Canada, first of all, familiarize yourself with the official requirements and procedures on the Ontario Ministry of Transportation website.
You will need the following to sell a car in Ontario:
- UVIP (Used Vehicle Information Package)
- completed and signed Application for Transfer part of the registration permit
Once you complete and sign the Application for Transfer part of the permit (as highlighted on the picture below), tear up this part and give it to the buyer. Keep the rest of the permit to yourself as you will need it for your new car.
The additional documents below are required to register the car by the new owner at the Service Canada:
- safety standards certificate
- car insurance
- plates
Where Can I Get UVIP
You can get your UVIP (Used Vehicle Information Package) at Service Canada or order online. It costs $20 and will be mailed to you within 5 business days.
UVIP includes all the information about the vehicle, registration history, mileage, liens (outstanding debts), wholesale and retail value of your car, if available, plus instructions and requirements for the buyer and seller.
When I’ve ordered the UVIP for my car, I still owned one last payment on the car loan. As the car was finally paid out, I’ve called my lender and asked to provide a confirmation letter.
I would bring this letter with me and show it together with UVIP to prospective buyers. If in doubt, they could always give a call to the bank to double-check.
The most important part of the UVIP is “Bill of Sale”, where you will include yours and buyer’s name and signatures, date of the purchase and the price.
The buyer has 6 days to register the car under their names, otherwise, it will count as an offense.
Make sure to make a copy or picture of the “Bill of Sale” after the sale is done and get the contact information of your buyer. You should follow up with the buyer to make sure the vehicle has been transferred to their name.
Where Can I Get Safety Standards Certificate
The safety standards certificate is issued by the certified mechanic. I was advised it can be done by the seller or buyer, or cost can be split between them if agreed.
The safety standards certificate is valid for 36 days only, so don’t rush with this one until you are sure in your buyer’s intentions, or got a deposit from them.
In my case, I, the seller, was the one doing the safety test. It lasted around 2 hours. As a result, I had to replace the breaks to pass the test. I’ve informed my buyer, and they’ve agreed to split the cost of the breaks.
Do You Need to Pass Emission Test While Selling a Car
For used light-duty vehicles emission test is no longer required to transfer the vehicle in Ontario as of April 1, 2017. Drive Clean test needs to be done every two years for cars older than 7 years old. You can check Drive Clean’s history for the car here.
However, used heavy-duty vehicles do require to pass the emission test to transfer the ownership according to this website.
Conclusion
Overall, it was not really hard to sell a car privately, it just takes time. The biggest challenge was to learn all the things and summarize what needs to be done.
Basically, you just need to prepare your car, collect necessary documents, advertise, show it to the prospective buyer, bring to their mechanic (if requested), pass the safety test and communicate/negotiate.
By the way, don’t forget to remove your plates once the car is sold. Plates in Ontario are attached to the driver’s name, not to the car.
I think I’ve spent around 6-8 hours for all the procedures, meetings, communication. Was it worth $2000 extra I’ve made? Absolutely! Especially that now I’ve learned how to sell a car privately, without the dealer. Knowledge is power! 😊
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