What Do You Need To Sell A Car

Finding Out The Wholesale Price Of Your Car

Wholesale value is based on the Canadian Red Book which has the wholesale and retail values of used vehicles. It is an industry standard used by car dealers, insurance companies and other provincial governments.

The values are based on the average amounts paid for vehicles of the same year, make and model. They dont take into account:

• optional equipment
• vehicle condition
• mileage.

These values can change from the day you pick up the Used Vehicle Information Package to the day the vehicle is transferred.

If you paid less than the Canadian Red Book value

If you paid less than the Canadian Red Book value, you can get the vehicle appraised before changing ownership.

If the appraisal supports a lower price than the Canadian Red Book, you will pay tax based on the higher of the purchase price and the appraised value.

Selling A Car At Auction

Auctioning a car is quick and relatively hassle-free.

But theres no guarantee your car will reach its reserve price, and you might end up getting less for it than through other ways of selling. And, if it doesnt reach your reserved price, youll have to take it home and try again in another sale.

Most auction buyers are in the motor trade. If youre lucky and attract a private buyer, they might be prepared to pay more for your car than a dealer would be.

Large car auction companies such as British Car Auctions and Manheim have branches throughout the country, but you might find it easier to use a local independent auctioneer nearer to you.

You can also look at online auction sites like eBay, but youll have to do a lot more of the work around creating the advert and answering questions. If your car sells, the winning bidder pays for it immediately and the auction company then gives you the sale price minus its commission. This can be up to 10% of the sale price.

How To Avoid Scams And Fraud When Selling Your Car

The internet is an amazing tool but it also can invite scams and fraud, just as people when buying or selling anything can, too. If you have questions or suspect fraud or scams when selling a car yourself, please email . Or call the Fraud Prevention Team at 1-877-210-5209.

You can also check out our tips for how to avoid scams and fraud.

What to Do If You Suspect Fraud

• Step 1: If you are the victim of a scam, please email us at with as much information about your particular situation as possible.
• Step 2: Forward any suspicious emails to us immediately at . Dont change the subject line or send it as an attachment because doing so could prevent us from identifying trends and preventing similar scams. To speak directly to a Customer Service Representative, call 1-877-210-5209.
• Step 3: File a complaint with Internet Fraud Complaint Center to inform federal and state law enforcement agencies. We strongly recommend that you report fraud to local law enforcement as well.

Kelley Blue Book investigates submitted reports in an effort to protect our customers against future fraud. We support law enforcement agencies in the prosecution of internet criminals and work diligently to prevent fraud.

Government agencies that provide additional outlets for concerns about fraud:

• Federal Trade Commission

• Bank routing number

Beware of emails that appear to come from Kelley Blue Book or KBB.com.

Other signs of fraud are emails that:

Beware of requests for payment to enter a sweepstakes.

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How Much Can You Earn

You can get a high income from activities. Outbid receives up to 20% of sales. The amount depends on the market value of the vehicle and on the profitability of the transaction. Average income corresponds to 10% of the cost.

Earnings from the resale of low-class cars will be up to 8%. They are usually easy to sell and take little time. Selling middle-class cars that cost from 700 thousand to 1 million rubles, you can earn up to 10% of the transaction amount. Expensive cars are much more difficult to sell. They need to be additionally prepared for sale. The average profit from such a transaction is 10-15%. The higher the price of a car on the market, the more difficult it is to sell. Customers who buy such vehicles have large sums of money, but at the same time have serious intentions and requirements. But for an experienced outbid, it will not be difficult to sell a car, even a VIP class.

Important! You can earn quite a lot of money on cars after minor accidents. To do this, it is enough to bring the transport into an aesthetically attractive form.

Determine The Vehicle’s Worth

Sometimes the decision to sell a vehicle privately comes down to the amount of profit you’ll gain through the transaction.

Before you can decide whether or not the process will be worth the effort, you’ll need to find out exactly how much your car is worth.

A few resources that will estimate your vehicle’s current market value include:

If your car isn’t worth as much as you thought, you may want to consider it for trade-in value at a dealership instead.

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Tips And Advice For Selling Your Car

The easiest way to sell your car is to trade it in when you buy a new one or to sell it to a car buying service but this will give you the lowest price.

Selling privately should get you more cash, assuming you can find a buyer, but won’t be as convenient. You’ll have to:

• find space for two cars at home
• arrange and pay for advertising
• maintain insurance cover and car tax on two cars
• deal with potential buyers enquiries, viewings and test drives
• get paid and make sure that funds are in your account before you hand over the keys

Before you advertise your car

Getting your car ready for sale is essential if you want to sell it quickly and get the best price presentation, mechanical condition and service history can all make the difference.

• Clean it inside and out and make sure that it’s generally tidy
• Repair minor paintwork damage or simple mechanical faults
• Get a new MOT, particularly if there’s less than three months on the current one.
• Consider a full, professional valet service it’ll save you time and can really make a difference

The legal bit

For a private buyer it’s a case of ‘buyer beware’ but that doesn’t mean you can sell a car in any condition or describe it as something it’s not.

• You must have the right to sell it
• The vehicle must match your description
• The vehicle must be roadworthy

Tips for a smooth car sale

Price

• Price your car realistically particularly if you want a quick sale
• Check the prices of similar cars in popular classified ad magazines or online

Maintain A Paper Trail

Its important to keep a paper trail when selling a car. At a dealership, the paperwork is handled for you. When you sell a car to an individual, its your responsibility to make sure the transfer is handled properly. By doing the legwork upfront, it can eliminate hassles down the road.

Each state has different rules regarding proper title transfer, but most require that the seller and the buyer fill out paperwork to ensure the transfer is legal.

In many states, the seller signs the back of the existing title, along with the date, sales price, and exact odometer reading* before handing it over to the buyer. You should also make a copy of the signed title for your records.

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*An accurate odometer reading is critical when you sell. Once you sign off on the title, the odometer reading provides proof of the moment in time the car is no longer legally yours. Dont round it up the buyer could have an accident within two miles of the sale, and claim that you are responsible.

Most states recommend that buyers and sellers complete a bill of sale along with a release of liability form to provide proof of the transfer and to protect the seller from any future tickets, violations or other problems with the vehicle. DMV.org, a clearinghouse of all state DMVs, provides a sample Bill of Sale as well as Release of Liability information.

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Make Sure That Your Space Is Adequate

Wherever you choose to operate your business, you want to make sure that you have adequate parking for your inventory. Check your state and county laws about storing cars without license plates. You dont want to incur fines and other fees. When you have a physical location make sure that the lot is sufficient for your inventory.

Gather All Your Documents

Whether you plan to sell your car privately or to a dealership, youll need to gather some information, including your title, maintenance records and original sale documents.

To transfer ownership of the car to a private seller, youll need its title. If you havent paid off the auto loan, the lender will likely hold the title until you do. Get in touch with your lender to find out what you need to do to arrange the sale and paperwork the buyer may need to make a check out to your lender to get the cars title.

Also, check your states department of motor vehicles or transportation agency website to see if you need to complete any other forms for the transfer of ownership, like a bill of sale, odometer disclosure statement or a notice of release of liability.

It can also help to have a record of the cars maintenance schedule to show that youve been taking care of it.

A vehicle report from Carfax or Autocheck can give buyers a history of the car, including damage or accidents and how many owners its had. Having a clean report in hand can put a potential buyers mind at ease. These reports might cost between $10 and $40.

Lastly, the original sale documents will describe any optional features you added to the car. This list will come in handy as you estimate your cars fair market value in the next step.

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Finally Its Time To Close The Deal

Before you agree to a deal, make sure youve established the buyers method of payment, whether it be cash or a cashiers check. Its also a smart idea to sign and date your cars title, before providing the buyer with a bill of sale. Some states will also require you to submit a release of liability form, in order to prove that you no longer own the vehicle.

Should I Sell My Car To A Dealership

Many people consider selling their vehicle to a car dealership. Its an alternative to selling privately. One of the reasons to sell to an auto dealer is the process is simpler. You wont likely have an issue finding a dealership to buy your car.

But, you will likely not get as high of an offer. Dealers will make you an offer so they can buy the vehicle and flip it for a profit. Expect less money. But, if you need to sell quickly and hassle free its a viable option. You could also use your vehicle as trade in value if you want to get a new vehicle.

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The Sale Contract And Down Payment

Protect your transaction. Ask for a non-refundable down payment, in case your customer changes their mind. Its best to draw up a contract. A contract is not required for private-party sales but CAA-Quebec recommends having one and even provides a model contract members can download.

Model contractPDF file 382 kB

Use it to specify the date for full payment and transfer of ownership, contact information for you and the buyer, information about the vehicle , the warranty, the requested down payment, the price, etc. If things dont work out, this will make it easier to sell to someone else.

Guide To Selling Your Car

Featured Resource

Selling an old car or truck privately doesn’t have to be complicated. With a little research and organization, you can simplify the process and get the most profit possible.

Use this simple step-by-step guide to help you along the way. Additionally, you can check out the other guides in this section, including:

• Negotiating a sale.

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Negotiating When Selling Your Car

If youre selling your car privately or to a dealer, the buyer is likely to want to haggle about the price. So, dont be caught off guard read our negotiating tips below so you know how to use to maximise your cars value without losing the sale.

For tips on negotiating when buying a car, read the Which? website

Take Advantage Of The Test Drive

Set up test drives with potential buyers in a safe, public place . Plan always to accompany them for the ride, and have a friend or family member join you, as an extra safety precaution. Take the opportunity to share what you know about the car and be ready to answer any questions they might have.

Also, try to get to know potential buyers better and understand what theyre looking for in a car. This can allow you to talk about the vehicles strengths and validate your asking price. But avoid trying to sell too hard, which can turn them off.

Some buyers may want to take the car to a mechanic for an inspection. This is a normal practice, but let the buyer pay the bill.

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Choose The Right Brand Of Cars To Buy/sell

Unless you have a particular niche like luxury cars, classic cars or something else, you may want to consider brands that the average used car buyer trusts and sees as reliable. According to Kelley Blue Book, some of the best used cars to buy or sell under $5000 are Subaru, Honda and Toyota. Because car makes like these, Nissan and Acura are widely recognized you are setting yourself up for success.

If you plan on going into a specific style of car, you will need to price them accordingly. Both restored classic cars and as-is classics tend to have a higher resale value than more modern cars. The nostalgia and cult-like following of these vehicles are impressive. Once again, sticking to what your customer base is most likely to be attracted to takes some of the guesswork out of choosing which used cars to buy. When you do your market research you will know what your customer wants from you and deliver.

Roadworthy Certificate Notice Of Disposal Paperwork To Document The History Of Your Car Is Vital To Selling It

There are plenty of ways you can shoot yourself in the foot when you sell a car, and misplacing paperwork is definitely one.

If you cant find the cars registration certificate, for example, you wont be able to photocopy it and hand the copy to the prospective buyer to prove that you are the registered owner.

So, lets take a look at all the documents you need to assemble when selling your car.

Note: While we have based this article on the requirements of those selling a car in Victoria, in the main the principles apply across the nation.

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How To Terminate The Insurance Contract

In order to avoid potential conflicts with the buyer and to avoid unexpected additional costs, it is very important to inform you about the sale of your vehicle.

In fact, in the event of a claim, if you have not taken the necessary steps, the costs may be affected by you.

In addition, after that, you are automatically exempt from the insurance premium Your contract will automatically terminate the day after the sale at midnight.

All you have to do is send a letter or email to the insurer stating the date of the sale.

You will receive the termination fee as well as a refund of the amount previously incurred, which corresponds to the period from the day after the sale to the date of the termination of the contract.

Also make sure that the new owner takes on the insurance premium.

Taking The Vehicle Abroad And Registering It There

It will take longer than usual to process your refund because of coronavirus .

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Block Out Your Personal Information

Before you hand over all the service records to the buyer, be sure to block out any personal information with a black permanent marker, such as credit card numbers, phone numbers or any other information you do not want made public. If you originally bought the car from a dealer, remove any contracts or completed credit applications from your glove compartment or owners manual. In the wrong hands, this is a perfect tool for identity theft, as it may contain your social security number and previous address information.

How To Sell Your Car

• Selling

Time to get rid of your car? Whether youre hoping to maximize the sale price or make the process as painless as possible, the proper preparation will help you meet your goals. The following steps will help you figure out the best way to sell your car and ensure you dont forget anything important.

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