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Dos and don’ts when selling a used car in Canada

Dos and don’ts when selling a used car in Canada

We are going to review some of the main dos and don’ts to follow when selling a used car in Canada. This list is not exhaustive but if you follow it, you should be able to sell your car without much hassle.

Has the loan on the car been paid off?

You would be shocked by the number of people who try to sell their car even though the loan on the car has not been repaid. When you bought the car, the lender had a lien registered on the vehicle which prevents it from being sold until the debt has been repaid in full.

The lender would have sent you a letter in the mail informing you the lien was released when the final payment was made. If you cannot find the lien release document, contact the lender and request a copy. Without that document, you will not be able to sell your car so hold off doing anything else until you get the release.

Is the car well maintained?

Prospective sellers want to rightfully know if the car they are interested in buying is in good shape. If there are defects with the car and you mention it in your advertisement then that is fine, but what some people do is claim a car is in mint condition when it was involved in an accident.

There are online services like CarFax that provide details on a vehicle's maintenance history but this service is not ubiquitous so you need to gather your vehicle’s service records to show prospective buyers. These documents are for in-person meetings with local buyers, never share details about your car online or it could be used by scammers.

Tricks used by scammers

Scammers have been around as long as humans have existed, the Internet just makes it more convenient for the scammers to ply their trade. What some scammers do is ask for your vehicle VIN and then utilize some creative social engineering to get personal details about you and your family.

These scammers will use that information to draft up a fake bill of sale and register a lien against your car. This may sound ridiculous but it happens in the mortgage industry and has now become common in the auto sector.

The pandemic has allowed people to register liens remotely so the criminals do not have to be in the country, they just register a numbered company and they are in business.

The easiest way to turn your used car into quick cash

Given all of the challenges that are associated with selling your used car, why not do yourself a favor and take the path of least resistance. You are not a professional car salesperson so why not sell your car to a local dealership and let them deal with the headaches.

The dealership will pay you right away if you accept their offer. Unlike some of the buyers you come across online, these dealerships are serious about buying cars for their inventory and will give you a competitive offer.

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Categories: sell your car