You’ve done all the research, you’ve looked up pricing, and you’re ready to put the car on the market. But how do you get the best price for your used car or truck?



Start early



The best way to maintain the value in your ride is to look after it over the entire time you own it. The decisions you make early on can have a big impact on resale value later. A set of laser-cut floormats might cost you between $150 and $250, but they can pay for themselves many times over at the other end when your carpets look pristine. You can even resell them afterwards.



Rust proofing and paint protection are two other low-cost techniques to look after your car. You can <a href="https://www.carceramiccoating.com/how-to-apply-nano-ceramic-coating-at-your-home">apply wax or spray-on ceramic coatings yourself</a>, and they’ll help protect your paint. Rust proofing is better done by a professional, <a> </a>but it will still cost you roughly $200 while making your car a high-value unit at the end of your ownership.



Even if you don’t do any of those things, you can still maximize your profit with these steps:



Stage it right



Selling a car has a lot in common with selling a home. You need to show your ride in the best possible light, to help its new owner fall as in love with it as you did.



That means taking the time and energy to clean thoroughly. While you’re at it, clean up as many of the dents, dings, and nicks as you can. You can <ins><a href="https://www.canadiantire.ca/en/howto/project.html/project/Auto/how-to-fix-a-scratch-on-your-car.html">easily polish out all those minor nicks and swirl marks</a></ins> that appear over time, and it can pay dividends when it comes to selling.



Change the oil



Doing a thorough pre-sale service might sound pointless, but it definitely helps with the marketability of your vehicle. Old oil looks cloudy and dark, new oil looks light and clean. If you’re able to show a clean dipstick to an interested buyer they’ll know you’ve taken care of maintenance. We also recommend having your mechanic do a quick inspection. Don’t be shy about your car’s flaws or the things it might need in the future. A forthright seller makes the buyer feel confident and more amendable to paying you the asking price. &nbsp;



Make a list of your upgrades



This one is especially true if you’re selling a truck. Maybe you added running boards or extra tie downs to your rig. All those little touches that add functionality deserve to be highlighted. Help your buyer understand why your vehicle is better than the rest.



Remove your “mods”



“Wait, didn’t we just say to list your upgrades?” Yes, we did. But there’s a difference between upgrades that add functionality or performance, and those that reflect your personality and taste.



Your goal here is to give the prospective buyer a blank slate for their own connection to the car, not to show them your cool sense of style!



We even suggest you remove that Maple Leaf’s sticker from the back window – because some car shoppers like the Red Wings. The same is true of custom interior trim, decals, and any knick-knacks hanging from your rear-view mirror. Get rid of the vent-clip air fresheners and mobile phone mounts too.



Make life easy



Get your paperwork in order and ready. In Ontario, that means having the <a href="https://www.ontario.ca/page/used-vehicle-information-package">Used Vehicle Information Package (UVIP)</a> and plate transfer documents on hand, ready to go. Your prospective buyer should be able to pay you money and drive away in their new-to-them ride.



The easier you make it the more likely you are to get a fast, no hassle deal, at maximum price.



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How to Get the Best Price for Your Car?

When deciding on buying a car, buying used has become more and more popular as vehicles are now more reliable than ever. Used cars are also packed with relevant technologies with newer vehicles having standard safety features such as back-up camera and more future-proof infotainment options such as Apple CarPlay and Android Auto. Going to a dealership will most likely be the most straight forward process, especially if you have a vehicle to trade-in. Although if you are willing to do more work, you will have more options and may save more money if choosing to buy a care privately. Below are 4 steps to help guide you through the private purchase journey. 



<h2>Step 1: Don&#8217;t be Afraid to Ask Questions</h2>



Every used car is different, as every car that you inquire on will have a different owner and a different story. There are some key questions you should ask of the seller before you go in person to visit the car:



<ul><li>Can you confirm that the car you’re selling is a &lt;make, model, year, colour, style&gt;? You&#8217;d be surprised at how often a seller posts incorrect information about their vehicle.</li><li>Do you have all the vehicle’s maintenance records for the entire period you have owned the vehicle and/or before you owned the vehicle (if it had another owner)?</li><li>Does the vehicle have any current or past damages, visible or not?</li><li>Do you have a <a href="https://www.carfax.ca/">Carfax</a> vehicle history report that you can send? If they do not have one we highly recommend you getting one to ensure a clean vehicle history and to also check if there is any outstanding lien on the vehicle. If you ask the selling for their vehicle&#8217;s VIN (Vehicle Identification Number), then you can use this information to pull a Carfax report yourself for a small fee. </li></ul>



If the owner can’t directly and fully answer these questions, then the sale will inevitably run into trouble down the road. If they are unwilling to answer any of these questions, then it is probably a red flag. Although even if they answer these questions, there is always a chance that they may not be telling the truth. Carfax report also only tells you what has been officially recorded. The next few steps will help you paint a clearer picture of the vehicle and the seller. 



<h2>Step 2: Test Driving the Vehicle</h2>



Once you are comfortable with the initial interactions with the seller, you can then schedule a test drive. Your test drive shouldn’t be a simple driving of the car around the block a couple of times. You should try to put the car through its paces a little. Take the car around the seller’s area first, but then try to get it onto a larger road where you can add power and speed. Try also to include any and all of the following elements:



<ul><li>Check to make sure all the electrical/mechanical items work. Common items includes: cameras, signals, headlights/taillights, power liftgate/doors, infotainment system, power window/locks, horn, seat adjustments</li><li>A route on which you’ll have to stop and start at intersections to test the brakes</li><li>A hill start (manual transmission) – to test the hill start assist function (if applicable) or just to see how easy it is to get the biting point, essentially meaning the engine can start moving the wheels.</li><li>Some basic maneuvers like parallel parking, reversing around a corner, three-point turn, etc.</li></ul>



As you are driving, make sure that any minor annoyance you may experience won&#8217;t bother you for years to come. Take the driver&#8217;s seat adjustability for example. Can you get into a position that is comfortable, practical and allows you optimum visibility through the windshield?



<h2>Step 3: Buying – Check the Documents</h2>



So the test drive went well and you&#8217;re now really excited to complete the transaction so that you can drive home with the car as soon as possible. The next stage is checking documents with the seller. The seller should have done the following things already, and be ready to share them with you:



<ul><li>Purchased a <a href="https://www.services.gov.on.ca/wps85/portal/s2i/!ut/p/z1/hZBPS8QwEMU_i4cezUySNk29xQXFFfxDUbe5lFSy2UKbLNlo8dubxYuCy85p5s37zYMBDRvQ3nyOzqQxeDPludOil7comCrpA64pxef7OymuXyr22DJ4hbdzFp3XeKIUZl6fs3Q5oj4ZwSi0xxu9M9AxwhpWV1wQKlDIumo45pZyXkvBxCUtWSlFI7D6pR7pyXgHnfXQWt-vFKxBuykMPz9QfuDSgY52a6ON5CNmeZfS_nBVYIHLspDgk4ljIO-mwP-QXTgk2Px1wn6-aZ7mWfJSD1-LuvgGn8yAuA!!/dz/d5/L2dBISEvZ0FBIS9nQSEh/">UVIP</a> &#8212; Used Vehicle Information Package &#8212; which contains all the vehicle details and specifications, its registration history in Ontario, information on Vehicle liens (claimants who have a right to the car or an amount of money owed), Retail Sales Tax information and additional information on the vehicle’s condition.</li><li>A signed bill of sale (BOS) which includes the seller’s name and address, the date of the transaction and the agreed purchase price. A simple BOS is available for use as part of the UVIP package. </li><li>A completed and signed Application for Transfer &#8212; don’t worry it’s not a separate form, you can find it on the back of the green ownership permit.</li></ul>



To verify that the seller is legally allowed to sell the car to you. Verify that the vehicle&#8217;s VIN (usually found by the bottom corner of the windshield, on the dash) matches that on the seller&#8217;s vehicle permit. Also confirm that the name on their driver&#8217;s license matches the information on the permit. 



A good seller will also be able to provide you with a Safety Standards Certificate from a qualified mechanic. This is not a warranty, but it shows that the vehicle meets at the minimum province-mandated safety standards. 



Finally, if everything looks in order, take the vehicle portion of the owner’s permit, and the UVIP, and sign and date the bill of sale. The bill of sale must be signed and dated by both parties.



<h2>Step 4: Register Your Car</h2>



The final step must take place within 6 days of the purchase date. Remember that the buyer is responsible for the 13% HST sales tax in Ontario, which is calculated from the purchase price or the wholesale value, whichever is greater. 



All you have to do is to visit a Service Ontario centre (you can find all their locations <a href="https://www.ontario.ca/locations/serviceontario">here</a>) and bring a few things with you:



<ol type="1"><li>Proof that you’ve purchased insurance on the car</li><li>Your valid Ontario driver’s license</li><li>The UVIP with the bill of sale</li><li>Owner’s permit with completed Application for Transfer</li><li>Current Odometer reading</li></ol>



At this point, if the seller hasn’t already provided you with a Safety Standards Certificate, then you’ll have to have one ready if you want to put your plates on right after registration. You can buy and register your car without it, but won’t be able to attach your plates until you have it. You can get them at any certified mechanics licensed by Ministry of Transportation Ontario to issue a Safety Standard Certificate. 



<h1>Enjoy Your New Vehicle</h1>



Once you’ve navigated these steps, you can drive your newly purchased car in confidence and start reaping the benefits. There are a few extra steps to take as opposed to going to a dealership, but much of it is quite straight forward if you plan out the steps, and do a bit of research. Much of the process is contained into a few items like the UVIP. There’s no need to apply separately for lots of different forms and papers. If you get everything in order, the process will be just a little less painful and you&#8217;ll be in your new ride before you know it!

Buying a Used Car Privately (A Step-by-Step Guide)

<h2>Buying a Used Car from a Dealership</h2>



Pros: There are thousands of dealerships in Ontario to give you plenty of options to choose from. Only shop at ones that are licensed by <a href="https://www.omvic.on.ca/portal/">OMVIC</a>. OMVIC is the regulating body for all dealerships in Ontario. Their key purpose is to maintain a fair and informed marketplace by protecting the rights of consumers. OMVIC regularly inspects dealership to ensure strict adherence to <a href="https://www.omvic.on.ca/portal/Consumers/ConsumerProtection.aspx">consumer protection</a> guidelines. This is a major plus if you are worried about fraud or vehicles coming from questionable sources. With dealerships, you have the option to purchase Certified Pre-owned vehicles. At a new car dealership, these programs are typically created by car manufactures and provide a standard for vehicle quality and often comes with a mechanical breakdown vehicle service contract backed by the brand. If you have a trade-in, dealerships will also allow the trade-in price to be deducted against your next vehicle so that you will pay less sales tax on the next vehicle. This is a financial benefit and a huge convenience factor if you do not want to go through the pain of selling privately. Just drop-off your old car, and pick-up your next one!



Cons: Modern day dealerships carry high costs and overheads, especially with the constant update of renovations and upgrades mandated by the car manufactures. All of this cost translates to higher selling price on both your car, and any protection and finance products that you may end up buying. You pay a significant premium for all that convenience. 



<h2>Buying a Used Car Privately</h2>



Pros: Online marketplace platforms such as <a href="http://autotrader.ca/">autotrader.ca</a> and <a href="http://kijijiautos.ca">kjijiautos.ca</a> are powerful tools that private car buyers and sellers have access to. These are the same tools that dealerships use to market their vehicles, and provides private car buyers with more choices and information than ever before at their fingertips. Similar to car dealerships, private sellers can now share high quality vehicle photos and provide details and even vehicle history reports online. These are all valuable information that private car buyers can use to make more informed decisions. Due to the perceived hassle of buying a car privately, the demand for privately sold vehicles are lower and thus the final selling price is typically lower when compared to a dealership. You also get to skip the potential high pressure sales tactic and the notion of being passed from person to person through the dealership sales process. Although a clear process may not be such a bad thing when you have to consider all the steps and potential headaches of buying a car privately. 



Cons: When buying a car privately, you have to make sure that you are extra careful throughout the entire process. Without knowing anything about the person or the vehicle that you are about to purchase, means you need to do some extra work. This includes getting the Carfax vehicle history report and ensuring there are no outstanding lien on the vehicle. If you need financing for your car or want extra protection products, it will be also much more difficult to do so if you purchased the vehicle privately. Visit our step-by-step post on how to buy a car privately in Ontario for more information and tips on protecting yourself.



<h2>Too Long Didn&#8217;t Read (TLDR)</h2>



Consider buying from a dealership if you: 



<ul><li>don&#8217;t want the hassle of dealing with private sellers due to financial or health risks such as scams or sanitation concerns</li><li>don&#8217;t mind paying a little more for your next car</li><li>want the reassurance of the OEM&#8217;s Certified Pre-Owned program</li><li>have a trade-in that you want to use to reduce the tax paid on your next vehicle, or simply don&#8217;t want to deal with selling your previous car</li><li>want financing and protection products</li></ul>



Consider buying privately if you:



<ul><li>want to save some money </li><li>don&#8217;t mind doing the research and going through the hassle of buying privately</li><li>want more choices (sometimes the specific car/option that you want may not be available). Used cars are said to be &#8220;one of a kind&#8221;, each are unique with their own story </li></ul>

Buying a Used Car (Dealership vs. Private)

Selling your car privately can get you the highest price when compared to trading it into a dealership, but doing so doesn’t come without headaches. We’ve put together a step-by-step guide using the&nbsp;6-P’s of Private Car Sale&nbsp;to help you make the process a little less painful.



<ol><li>Pricing </li><li>Paperwork</li><li>Preparing your car</li><li>Promoting</li><li>Prospective buyer interactions</li><li>Payment &amp; Post-sale</li></ol>



1. PRICING



One important step to take before selling your car is to determine if now is the right time to sell. If, for example, you have an outstanding car loan balance, you should first check to see how this compares to the market price of your car.



Loan Balance.&nbsp;If the current market value of your car is $14,000 but you still have $17,000 owing on it, you will need to pay off the $17,000 before selling the car to another private purchaser. In this simple case, you will lose over $3,000 from the sale of your car. You may find it more advantageous to keep the car for longer until more of the loan balance is paid off before selling. The further along you are to paying off your vehicle, the higher the chance that you car will be worth more than the loan balance you owe.



<div class="wp-block-image"><figure class="alignleft size-large is-resized"><img loading="lazy" src="https://blog.carity.com/wp-content/uploads/2021/02/car-price-graphic.png" alt="" class="wp-image-115" width="312" height="319"/></figure></div>



What’s my car worth? The best way to quickly and easily determine your car’s &nbsp;current market value is to use one of several &nbsp;free &nbsp;online estimation resources such as&nbsp;<a rel="noreferrer noopener" href="https://www.kbb.ca/" target="_blank">Kelley Blue Book</a>&nbsp;(KBB) or&nbsp;<a rel="noreferrer noopener" href="https://www.canadianblackbook.com/" target="_blank">Canadian Black Book</a>&nbsp;(CBB). Online estimator tools typically provide you with 3 estimates:&nbsp;



Dealer Trade-in Price – What the Dealer would pay you. Usually the lowest value of the three



Market Price (Dealer) – What the Dealer will sell your car for. The highest of these values



Market Price (Private Sale) – What you should expect to sell your car for privately.



The Private Sale price is often slightly lower than the Dealer selling price as consumer confidence is higher when buying from a Dealer.



Additionally, you can also do some research based on similar vehicles (Make, Model, Trim, Options) at online marketplaces such as&nbsp;<a rel="noreferrer noopener" href="https://www.autotrader.ca/" target="_blank">AutoTrader</a>&nbsp;or&nbsp;<a rel="noreferrer noopener" href="https://www.kijijiautos.ca/" target="_blank">Kijiji.</a>&nbsp;Be sure to select vehicles within your geographic region (&lt;100KM) and notice the price difference between private and dealer listings.



It is important to note that the prices you see are the initial listing price, and not the final transaction price. Typically the final transaction price is roughly 5-10% lower than the listed price for the average car as a result of negotiation, so keep this in mind when setting an expectation for yourself.



2. PAPERWORK



UVIP.&nbsp;When selling privately in Ontario, you are required to order a Used Vehicle Information Package from&nbsp;<a rel="noreferrer noopener" href="https://www.ontario.ca/page/used-vehicle-information-package" target="_blank">Service Ontario</a>&nbsp;that you must pass on to the buyer at the time of purchase. This package includes valuable information about your vehicle that provides buyers with added transparency on the vehicle, such as&nbsp;<a rel="noreferrer noopener" href="https://www.omvic.on.ca/portal/NewsPublications/OMVICBlog/tabid/450/EntryId/287/Understanding-the-UVIP-Ownership-and-Vehicle-History.aspx" target="_blank">Vehicle History</a>&nbsp;and&nbsp;<a rel="noreferrer noopener" href="https://www.omvic.on.ca/portal/NewsPublications/OMVICBlog/tabid/450/EntryId/288/Understanding-the-UVIP-Lien-Information-and-the-Bill-of-Sale.aspx" target="_blank">Lien Information</a>. It also has a simple Bill of Sale section that allows you to record the sale price, date, and buyer/seller signatures.



There are other documents that you will need to in order to sell your car such as the Vehicle Registration Permit (aka vehicle ownership). &nbsp;To learn more about the documents you will need to give a buyer, as well as what you should keep for yourself, it is worth the time to visit <a rel="noreferrer noopener" href="https://www.ontario.ca/page/vehicle-registration" target="_blank">Service Ontario</a> for a concise overview.



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It is common that potential buyers will ask for your vehicle maintenance history and&nbsp;<a rel="noreferrer noopener" href="https://www.carfax.ca/" target="_blank">Carfax report</a>. For vehicle maintenance history, any receipts you have proving that you have maintained your vehicle as per manufacturer’s recommended intervals should be sufficient. It is almost guaranteed that someone will ask you for a Carfax report, so we definitely recommend you order one in advance so that you have it readily available. The more transparency you share on the car, the more trust that you can build with your potential buyers, which ultimately increases your chance of selling your car at the price you want.



3. PREPARING YOUR CAR



<figure class="wp-block-image size-large"><a href="https://www.freepik.com/vectors"><img loading="lazy" width="1024" height="600" src="https://blog.carity.com/wp-content/uploads/2021/02/Car-wash-1024x600.png" alt="" class="wp-image-117" srcset="https://blog.carity.com/wp-content/uploads/2021/02/Car-wash-1024x600.png 1024w, https://blog.carity.com/wp-content/uploads/2021/02/Car-wash-300x176.png 300w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Cleaning.&nbsp;If you haven’t cleaned your car since the time you’ve bought it, now is the time to do so! Having a clean car allows potential buyers to see your car in the best possible way and can make or break a deal. If you want to do it yourself with great results, you can follow these&nbsp;<a rel="noreferrer noopener" href="https://www.popularmechanics.com/cars/how-to/g99/10-tips-to-clean-and-detail-your-car-like-a-pro/" target="_blank">pro-tips</a>&nbsp;for an exterior cleaning. 



For the interior, hiring a professional to do the work is a good option, especially if the car requires significant cleaning or deodorizing. One tip to determine if it needs some extra cleaning is to ask your friend or a family member that doesn’t usually travel in the car to sit in it and give you an honest opinion.



Repairs.&nbsp;Aside from a deep clean, you may want to consider repairing certain items. Some repairs will be worth the money, while others will not significantly increase the value of your car. This is similar to renovations made to your home. Kitchens and Washrooms will get the most return, while repairing your 5 year old washing machine will probably not add much value.&nbsp;<a rel="noreferrer noopener" href="https://www.autotrader.com/car-recall/selling-your-car-items-to-fix-before-you-sell-212757" target="_blank">Here</a>&nbsp;are some items to consider before selling your car.



Photos.&nbsp;You don’t have to be a professional photographer to take high quality photos. This is the first impression that people will get when viewing your listing online. The key is to take a variety of clear photos at different interior and exterior angles. Make sure that the environment is well lit and that there are no people or other vehicles in the background. Instead of a sunny day, a cloudy day actually works out well as it minimizes glare and shadows.&nbsp;<a rel="noreferrer noopener" href="https://www.edmunds.com/sell-car/how-to-photograph-your-car-for-sale.html" target="_blank">Here</a>&nbsp;are some additional tips for taking expert looking photos.



4. PROMOTING



Where to promote your car?&nbsp;A for sale sign on your dash could work if your car is parked in a high traffic area, but to maximize the demand for your car, we suggest for you to list at online marketplaces such as&nbsp;<a rel="noreferrer noopener" href="http://autotrader.ca/" target="_blank">AutoTrader</a>,&nbsp;<a rel="noreferrer noopener" href="http://kijijiautos.ca/" target="_blank">Kijiji</a>, or Facebook Marketplace. Also share the word via the social media platform(s) of your choice with your friends.



Be Detailed in your Listing.&nbsp;To ensure you attract the most potential buyers, a detailed listing with relevant information will be important. This will also reduce the amount times that you will be contacted to provide more information. Basic information that we suggests to include are: Vehicle Make, Model, Model Year, Trim, Options, and the general Vehicle Condition. For added transparency, include information such as Maintenance History, Past Accidents, a link to your Carfax report, Transferable Protection Products/Warranties, and Accessories such as Winter Tires.



5. PROSPECTIVE BUYER INTERACTIONS



<div class="wp-block-image"><figure class="alignright size-large is-resized"><a href="https://www.freepik.com/vectors"><img loading="lazy" src="https://blog.carity.com/wp-content/uploads/2021/02/email-1024x1005.png" alt="" class="wp-image-118" width="294" height="289" srcset="https://blog.carity.com/wp-content/uploads/2021/02/email-1024x1005.png 1024w, https://blog.carity.com/wp-content/uploads/2021/02/email-300x294.png 300w" sizes="(max-width: 294px) 100vw, 294px" /></a></figure></div>



Communication.&nbsp;Most of your time selling your car will be spent interacting with potential buyers. The more means of communication you provide, the easier it is for them to reach you. Most marketplaces will hide your email address unless you explicitly share it in your response to people inquiring. Expect to receive many calls from both dealers and private sellers who are making low-ball offers. Don’t be discouraged! This is normal and if you are uncomfortable with disclosing your number, you can limit the calls by not showing your phone number on your listing. At the end of the day, if a buyer is really interested, they will contact you through whichever means are available. 



Test Drive.&nbsp;Most buyers will want to test drive your car before purchasing it. Before the test drive think about having a friend or family member with you for safety. Ask to see the buyer’s driver’s license and consider taking a picture for your records. You should also meet at a safe location during the day near a high traffic area where people can see you. Here are some additional&nbsp;<a rel="noreferrer noopener" href="https://www.kbb.com/car-advice/steps-to-help-protect-yourself-when-selling-a-car/" target="_blank">safety tips</a>&nbsp;to consider when conducting test drives and selling your car privately.



Inspection.&nbsp;Some buyers may also want to take the vehicle to a mechanic for a&nbsp;<a rel="noreferrer noopener" href="https://www.carfax.ca/resource-centre/articles/why-a-pre-purchase-inspection-is-important" target="_blank">Pre-Purchase Inspection</a>&nbsp;for added confidence.



A&nbsp;<a rel="noreferrer noopener" href="https://www.ontario.ca/page/safety-standards-certificate" target="_blank">Safety Standard Certificate</a>&nbsp;is also required in Ontario before the new owner can put purchase license plates and drive the vehicle. Usually the seller will include a Safety Certificate as part of the selling price of the vehicle. The cost of the inspection can range between $100-200 but it is well worth the investment as certified vehicles will undoubtedly sell for more money vs. an uncertified vehicle. Any inspection station in Ontario that is licensed by the Ministry of Transportation can provide you with a Safety Standard Certificate. Registered locations will have this <a href="https://www.aaro.ca/mvis/">sign</a> in their window.



6. PAYMENT &amp; POST-SALE



Payment.&nbsp;Once you have negotiated the final selling price, it is time to verify the buyer’s payment. The safest method is through Bank Transfers or Certified Cheques that can be verified by your local bank. Here are some additional tips for&nbsp;<a rel="noreferrer noopener" href="https://driving.ca/auto-news/news/selling-your-car-watch-out-for-these-five-potential-scams" target="_blank">preventing fraud</a>.



Ownership Transfer.&nbsp;Once you have received the funds, complete and sign the “Application for Vehicle Transfer” section on the back of your vehicle registration permit and give it to the buyer. They will need this to transfer the ownership of the vehicle. If you have a Safety Standard Certificate, this is also the time to give it to the new owner.



Don’t Forget!&nbsp;Be sure to remove all your personal belongings from your car. Items that are usually missed include Garage Remotes, Toll Road Transponders, and CDs in the CD player (if your car still has one). Refer to your owners manual on how to delete all personal information from your vehicle’s navigation and phones systems (if applicable). Lastly, remove your license plates and contact your insurance company to remove your sold vehicle from your policy.

6 tips for selling your car privately (The 6 P&#8217;s)

<h3>How it Works</h3>



When you trade-in a car at a dealer, you only get taxed on the difference between your purchase price and the trade in price.&nbsp; The theory is that you’ve already paid the tax on your old car, and you shouldn’t be taxed twice.&nbsp; The simplest way to calculate the savings is to take your “trade-in price” x “tax rate” for your province or state. That is the money you save.



<h3>How Dealers Win</h3>



In the example above, the dealer will say you are getting $11,300 in value ($10k + $1,300 tax savings).&nbsp; Maybe you think you can sell privately for $11,700.&nbsp; The dealer will argue that you are going through all that effort just to make an extra $400.&nbsp; The dealer is basically taking your tax savings, by giving you a low trade-in value.&nbsp; My advice is to stick to your guns.&nbsp; Know the value of your car, and insist upon getting that value. Then apply the tax savings on top.



See what <a href="https://www.omvic.on.ca/portal/NewsPublications/OMVICBlog/tabid/450/EntryId/66/Should-I-Trade-in-My-Car-or-Sell-it-Privately.aspx#:">OMVIC</a> says about tax calculations and other common dealer disclosure issues.

Calculating Tax Credit on Your Trade-in

<h3>What’s My Car Worth?</h3>



You’re just trying to answer a simple question, right?&nbsp; Well it turns out the answer can vary depending on who you ask, and how you are trying to dispose of your vehicle.&nbsp; In this article we will explore the difference in pricing based on the three most common prices (trade-in, private sale, and dealer asking price).&nbsp;



<h3>Trade-In Price</h3>



The majority of dealers will buy your car, regardless if you buy theirs.&nbsp; Either way, you will typically get the trade-in price.&nbsp; Unfortunately, this price can seem quite low. Dealers have expenses (marketing, repair, cleaning, holding cost), need to make a profit, and since there is no guarantee on the selling price, they price in a certain amount of risk to each car.&nbsp; For my own GMC Terrain, the local dealership website’s trade-in tool says the average trade-in price is $10,622. Their trade-in too is powered by CarFax, which intentionally designed to A) provide 3rd party credibility, B) reduce consumer expectations on the price.



<h3>Private Sale</h3>



Before listing their vehicle privately, most consumers will do some research on Autotrader and Kijiji.&nbsp; They find cars similar to their own car, and will assume they can list for the same price.&nbsp; The problem is that most buyers have reservations about dealing with private sellers.&nbsp; Buyers worry about scammers and damaged or rebuilt vehicles. AutoTrader &amp; Kijiji have tools to estimate the discount amounts for private sellers.&nbsp; For my GMC Terrain, it was&nbsp; suggested I list it for $14,785. Unfortunately the tools are based on list prices, and not the actual selling price.&nbsp; Most private sellers end up dropping their price dramatically, and many still don’t sell their vehicle.&nbsp;&nbsp;



<h3>Dealer Asking Price</h3>



Dealer asking price is closest to true retail value.&nbsp; Dealers must price their vehicles competitively, or they won’t get any leads.&nbsp; The dealer might have to drop the sale price a bit in the final negotiation, but there usually isn’t much wiggle room.&nbsp; The challenge is that only dealers can command these prices.



<h3>Conclusion</h3>



There are many sites willing to provide pricing information.&nbsp; Be skeptical of their prices and motivations.&nbsp; Most of these traditional players have deep links with dealers, and their job is to convince sellers that their car is worth less.&nbsp; If you want to get retail value for your car, find out how Carity can help.

Resources

Resources