How to sell your car privately

Are you thinking about selling your car privately instead of trading it in, but not sure where to start? There are a few key steps you’ll need to follow to make sure everything is done legally in Canada. Don’t worry—the team at BrokerLink has got you covered. Let’s break it down.

Selling your car privately in Canada

Selling your used car in Canada takes a few steps, but with a little patience and attention to detail, you can get the best price for it. By following these steps, you’ll know exactly what to do to make the process smooth and stress-free!

1. Figure out what your car is worth and how much you want to sell it for

If you're thinking about selling your car, the first step is figuring out what it’s worth. You can use websites like Clutch or Carfax Canada to help you get an estimate for used car prices. Other great tools, like the Canadian Black Book and the Canadian Red Book, can also help you gauge your car’s market value. Just be honest about your car’s condition—especially any mechanical issues—so you get a realistic number and avoid surprises down the road.

Once you know your car’s value, it’s time to set your asking price—basically, your ideal selling price. You can start with the market value from step one and check out what similar cars are going for in your area.

The key to pricing is knowing your bottom dollar price—the lowest amount you’re willing to accept. If you still owe money on the car, be sure to factor that in.

2. Prepare your vehicle for sale

If your car looks like it’s been through one too many road trips, buyers might think twice before making an offer. First impressions matter, so give your car a thorough clean, inside and out.

Once it’s looking its best, take some great photos that highlight its best features. And don’t forget to clear out any clutter in the background—it helps keep the focus on your car.

3. Prepare all the necessary paperwork

Now’s also the perfect time to get all your paperwork in order. Each province has different rules, so some documents may or may not apply depending on where you live. Be sure to check your province’s requirements ahead of time to avoid any hiccups. Here are some documents you might need:

Bill of sale

In most private sales, this is required to officially transfer ownership. It includes buyer, seller, and vehicle details, like the vehicle identification number and selling price. Some provinces have specific formats, so check your local guidelines.

Comprehensive bill of sale

A comprehensive bill of sale is a detailed document that lays out everything about the vehicle and the sales agreement when buying or leasing from a business. It helps protect buyers from surprise fees or unauthorized costs, giving them a clear breakdown of the purchase.

If you're buying from a dealership or business, some provinces, like Alberta, may require them to provide this document at the time of sale, so make sure you get a copy before finalizing the deal.

Used vehicle information package (UVIP)

This is for Ontario residents. It includes details about the vehicle’s condition and history, such as any liens owing, past owners, and any reported accidents. It will also include the estimated wholesale price for the vehicle and a template for the bill of sale. A UVIP can be purchased from ServiceOntario.

Vehicle history report

You can use Carfax to pull a vehicle history report. This will show the buyer that your car hasn’t been in any accidents and that the odometer reading is legit.

Transfer of ownership document (TOD)

Most provinces require a transfer of ownership, like Alberta. In some cases, you and the buyer will need to fill this out together to prove ownership and complete the registration. You may also need to be present when the buyer registers the vehicle.

Certificate of inspection (COI)

Some provinces, like Manitoba, require this to prove the car has been inspected and is ready to be registered and insured.

4. Decide where to sell your vehicle and list it

While some people prefer to park their car on their lot with a for sale sign in their window, this isn't the only way to sell, nor is it necessarily the best way. In fact, it's pretty limiting. Listing your car online gives you access to way more potential buyers.

To get the most exposure, it’s best to list your car on multiple online marketplaces. There are both free and paid options, depending on how quickly you need to sell and how much you're willing to spend. Some of the most popular sites include:

• Autotrader
• Carpages.ca
• Facebook Marketplace
• Kijiji
• Used.ca

Here's a tip: If you’re selling the car yourself, always list it “as-is.” This means the buyer knows exactly what they’re getting, and it helps protect you from any legal issues if the car has problems after the sale.

Also, to make your listing stand out, keep your description short, clear, and to the point, highlighting your car’s best features. And don’t forget to upload those great photos you took earlier!

5. Be prepared for questions and test drives

It’s always good to be prepared, especially when selling your car. Buyers will have a lot of questions, from the car’s condition and mileage to its maintenance and accident history, and even why you’re selling it in the first place. When answering these questions, remember to be upfront. Keep the following on hand in case they ask:

• Vehicle identification number
• Vehicle history report
• Inspection reports
• Maintenance records

And don’t forget—most serious buyers will want a test drive, so make sure there’s enough gas in the tank.

6. Negotiate the price

The buyer loves your car and is ready to make a deal—but of course, they’ll want the best price possible. That’s where negotiation comes in. Here are some negotiation tips to keep in mind:

• Start at your asking price and give them a moment to think it over.
• Expect a lower counteroffer, but don’t be afraid to counter with a price closer to what you originally asked.
• Remind them of the car’s best features and any recent maintenance to justify your price.
• Stick to your bottom-dollar price—don’t go lower than what you’re comfortable with.

7. Close the deal

Once you agree on a price, it’s time to seal the deal:

• Verify the payment—whether it’s cash, bank transfer, or a certified cheque (never accept personal cheques)
• Collect the funds before handing over any documents or keys
• Fill out the bill of sale and sign the “Application for Vehicle Transfer” section on the back of your vehicle registration permit
• Give the buyer the registration permit—they’ll need it to transfer ownership

With everything squared away, you’re all set! Time to say goodbye to your old car and move on to what’s next.

8. Remove your car insurance

Once the sale is done, don’t forget to call your insurance company and let them know. They’ll need to remove the sold car from your car insurance policy and, if you’ve bought a new car, add your replacement vehicle to your coverage.

If you haven't bought your replacement car yet, don't stress about being uninsured or a gap in coverage just yet—most insurance companies offer a 14-day grace period to get your new car’s ownership and registration sorted. But it’s always a good idea to double-check with your provider to make sure you’re covered.

Learn more from BrokerLink

Before you sell your used car or buy a new one, make sure your insurance is up to date. If you’ve sold your vehicle and are planning to get another, this is the perfect time to reevaluate your coverage and see if you’re still getting the best deal. Let BrokerLink help you find the right policy for your next ride.

You can reach us by phone, by email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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