It took many hours of research, but you finally found your dream car! That’s great, but now what to do with your old vehicle?

If you’re looking to sell your car online, it may not be as straightforward as it seems. We recommend first reviewing online your local government’s requirements prior to selling your car. The Good Hands Advice team has provided additional tips to make sure your customer is left happy and satisfied with their now new (used) car.

What Steps Do I Need To Take to Sell My Car Online?

Step 1 – Gather the Necessary Documentation

The new owner will need a vehicle history report for the car – this may include a ‘Transfer of Ownership’ or ‘Vehicle Identification Certificate’ that’s attached to the seller’s registration certificate, a valid Certificate of Inspection or Bill of Sale that is signed by both parties. You may need their proof of insurance or licence as well.

However, these requirements may vary from province to province. CARFAX compiled its guide to each province’s requirement if you’re selling your used car privately.

Step 2 – Prepare Your Car For Inspection

You want to ensure that your car is presentable to potential buyers when you list your car. This may involve you deep cleaning both the interior and exterior of the car and ensuring that your mechanic has inspected it.

Images of a clean car may garner more attention from potential buyers. And if your car has recently been serviced by a mechanic and have supporting documentation and you mention this in the ad’s description, it may also raise the interest of buyers.

Step 3 – Set the Price

A car’s value depreciates over time. According to Auto Trader, most vehicles lose about 20% of their value after the first year, and roughly 10% to 15% every year thereafter. However, each vehicle’s depreciation can be a little different.

You have to consider the number of kilometres on your car, if it’s been involved in any accidents, mechanical issues, etc.

You can research similar year, make, models of your car online and set a competitive price, you can ask your mechanic or original dealer for an estimate, or some sites may utilize a calculator to determine the estimated price of your car. Whichever option you choose, be sure that you are comfortable with the price and be aware that potential buyers may try to negotiate the price down.

Step 4 – Determine the Best Site to Sell Your Vehicle Online

There are many platforms where you can sell your vehicle online. Some suggestions include Facebook Marketplace, Kijiji, or Craigslist, but there are others. Just ensure that it is a reputable site, and you are not placing any personal information through the ads.

Additional Tips

• When taking photos of your motor vehicle for the ad, cover your licence plate.
• When meeting a buyer in person consider meeting them in a public area.
• If a buyer would like to do a test drive, have a friend or family member accompany you while the customer takes the car for a ride.
  • We also recommend checking their driver’s licence and insurance coverage before handing them the key.
• Do not exchange personal information about yourself or the car online – take the conversation offline if they would like to learn more.
• When accepting payment, be sure to get the payment up front. While it may be nice to be paid in cash, it’s recommended that there’s an electronic record of the transaction.
  • You may also want to consider developing a contract for them to sign or creating a receipt.

Step 5 – You Made the Sale…Now What?

Once you and the buyer have come to an agreement and they’ve paid for the car, now what?

As mentioned earlier, each province has their own set of rules and regulations that you need to follow; visit your province’s website to learn more. And, if you haven’t already, remove your car off your insurance.

Good luck and happy selling!

Disclaimer: This information and the websites referenced are provided for your convenience only and should not be construed as providing legal or insurance advice. Allstate does not control or guarantee the accuracy of any content on any third-party site. Allstate is not responsible for the privacy practices of any third-party site.