How to sell a pre-owned vehicle legally, with the correct paperworkBy Kijiji Autos
Before you begin, make sure that all of your current documentation is in order. Make sure the Vehicle Identification Numbers (VIN) on the vehicle and on your permits match.
While many Canadians enjoy the convenience of trading in their used cars at the dealer, selling privately is still the best way to maximise profit. After you’ve familiarised yourself with prepping a car for private sale, there are various governmental procedures that you have to keep in mind when transferring ownership to someone else.
Before you begin, make sure that all of your current documentation is in order. Make sure the Vehicle Identification Numbers (VIN) on the vehicle and on your permits match. These can be found on the driver’s side of the windshield in the bottom corner looking at it from the outside. If the car hasn’t been insured for a while, make sure you have the documentation from when it still was.
While provinces vary to certain degrees, the most common factor you’ll find is requiring valid mechanical inspections. Some provinces choose to impose mandatory inspections on most (if not all) used private vehicle sales, but many simply require that the vehicle has passed inspection previously and is still within specified time constraints. It’s always fun to gripe about having to pay out-of-pocket for sometimes-unnecessary mechanical inspections, but remember, most of these inspections go towards keeping vehicles on the road safe for the occupants and everyone else on the road. When selling your vehicle, make sure you have all the proper documentation of the vehicle’s past inspection(s) to give to the buyer and to show at the motor vehicle agency at signing. Some provinces even make it easier by slapping a windshield sticker on the car so you don’t need to worry about this step (Québec, for instance).
Another piece of documentation that is necessary for most provinces is a Transfer of Ownership (tax) form that is available from each respective government agency’s website. Make sure to fill out this form accurately and ask the buyer to do the same as it can cause problems the day you go to transfer the car and because tax forms. These official forms should not be confused with a Bill of Sale, which is something else you should prepare for the transaction.
On the Bill of Sale, which can be on something as crude as a piece of loose leaf paper, make sure to record the buyer and seller names, the date of sale, the description of the vehicle including colour, mileage, etc., price, and signatures all round. This is something else that you may be asked to present at the motor vehicle agency.
Lastly, licence plates are typically associated with the owner of a vehicle and not to the vehicle itself. This means that you must ensure that you take your plates off the car before handing it over to the new driver. If you no longer need the plates for another vehicle – and assuming you don’t hang them up on your garage walls like me – you can often apply for a refund for the remaining period before your plates expire and then surrender them to the motor vehicle agency.
More information can always be found on your province’s motor vehicle association’s website and it is strongly recommended that you follow all steps listed there before completing any private car sale.
Easily find your next ride on Kijiji AutosSearch now
Everything you need to know about selling your car on Kijiji Autos
Are you wondering, "How do I sell my car online?" Did you know that it's never been easier to find a buyer for your vehicle when you use Kijiji Autos? Here's a simple cheat sheet for selling your car online: Write a great ad Buyers aren't just looking for a sales pitch. They want to know...
Everything you need to know about trading in your car
If you think it's time to upgrade your everyday vehicle, but you don't want to bother with selling it privately, then trading your car in is likely the option for you. Trading in refers to the process of applying the value of your current car towards a new or gently used option at a dealership.
7 tips on setting the right asking price for your vehicle
We’re often so attached to our old car that we overestimate its dollar value. But the used car market doesn’t care much about our feelings, nor for the vehicle’s backstory, unless it’s a vintage car. Here are 7 tips to help you set the right price for your used vehicle: 1. Age and mileage...
4 ways to tell it's time to change your car
One thing to keep in mind is the immediate depreciation that new cars suffer from. Unless you’ve bought a very rare sports car, count on your car losing around 20% in the first 12 months after you drive it off the lot. Every year after that could knock another 10% off, so keep that in mind when...
Short guide to the perfect car photo
The same rule applies when advertising your used vehicle. You want it to stand apart from the crowd. By displaying high-quality, realistic photos of your vehicle, you’re sure to grab the attention of buyers. Above all, you’ll proudly present it in its best light! Our short guide to the perfect...
How do I write an ad for selling my car?
If you’ve already asked yourself “how do I write an ad for my car?” chances are you’re already motivated and anxious to sell your vehicle to the right buyer. Whether you’re ready for an upgrade or want to trade in your sports car for a family-friendly vehicle, you need to you sell your current...
How to take great pictures that will help sell your car
One of the biggest benefits of using Kijiji Autos is the sheer amount of choice. Buyers can browse a wide selection of makes, models and trims – and it's easy to make comparisons between them, for price and a variety of other factors. Your well-being remains our top priority. Please seriously...
Here's how to sell your car easily
Sell your car at a reasonable price If you’re wondering, “How much should I sell my car for?” remember that most buyers are filtering their searches by price. That means that your car’s year, make and model are often not the most important things on a buyer’s list of priorities. Make an honest...
Our tips for writing your used car Ad
You’d love to sell your car. It’s still in great shape, but you’re ready for a change. There’s no better time to place an ad and find it a new home. Beware: writing an ad that will catch the eye of the right buyer can’t be done on the fly. You don’t need to be Shakespeare, but you should take...
5 Things you are messing up on your car ad
There, you hope that they will find the information they need to determine if your car is for them, as well as your contact information to start the sale process. However, there can be a few basic mistakes you can be making that prevent this ideal flow from happening. Here’s five key points that...