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The dos and don’ts of selling a used car in Canada

The dos and don’ts of selling a used car in Canada

If you are trying to sell your used car for a profit, these dos and don’ts will help give you a better-than-average chance of success.

What is the current fair market value of your used car?

Before you can sell something, you have to figure out what it is worth. The value of used cars typically drops every year due to depreciation but since the pandemic hit the global economy, the price of used cars has risen.

To determine what the current fair market value is of your car, you have to look at similar vehicles based on mileage, condition of the car, and where it is located. Cars that are in rural areas tend to sell for less than similar cars that sell in urban areas.

Some websites can give you some insight into what similar cars are selling for, but these websites are just for ballpark figures.

When you have worked out what your car is worth, you need to find people who are interested in buying cars and also have the money to pay for them.

Posting used car advertisements on platforms like Kijiji

You could place an advertisement on Auto Trader, eBay, Craigslist and Kijiji, but there is no guarantee your ad will reach your target audience.

These websites receive numerous listings daily and your advertisement could end up getting lost with the others. There is an option to pay a fee for your advertisement to appear prominently but you are competing with professional sellers for that same space.

Another option is to list your used car on online auctions like Copart but you need to factor in the fees to list the car. Even if the car does not sell, you will need to pay for the listing of the car which can get pretty expensive.

Social media is another way people sell things but since you are selling a car the number of consumers who actively use social media for buying cars is limited. Most buyers will use platforms that are dedicated to car buying and selling.

You may be wondering how can you sell your used car with so many other people and businesses trying to sell their used car?

The trick is to let someone else worry about selling your car, what you can do is contact your local car dealership and they can buy your car.

These local dealerships will perform an appraisal of your car and let you know what they are willing to pay in cash today for the car.  The amount is not going to be 100% of whatever the car is worth, the dealership is going to resell the car so they need to earn a profit but you get paid and don’t have to deal with any of the challenges that come up when selling a used car.

This approach is a win-win for both you and the dealership. So now that you know the do’s and don’ts of selling a used car in Canada, contact your local dealership and find out what your car is worth.

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