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What you need to know about selling cars in Canada

What you need to know about selling cars in Canada

If you are thinking about buying and selling used cars in Canada, you are not alone. Some people try to buy used cars at very low prices and then resell them for a profit.

The prices of used cars are on the rise and some used cars are now selling for more than new cars! We are working on the premise that you are not trying to buy and sell cars as a sideline business because that requires licensing.

Why are used car prices so high?

It comes down to supply and demand, when the pandemic hit the global supply chain came to a screeching halt. Carmakers stopped making new cars and the companies that make the components that go into new cars also went out of business.

While the carmakers have people ready to work, they do not have a steady enough supply of components to build the new cars. Now that people are back to work and school, the demand to buy a new car is at pre-pandemic levels but there are no cars to buy.

What consumers are doing is buying newer used cars and biding their time until the number of available new cars increases but that will take years to happen.

Challenges of selling a used car on your own

You may think that since the demand for used cars is peaking, there should be no issues selling your used car. There are scammers out there that buy used cars with fraudulent checks and ship the cars to developing countries like Africa via container ships. Africa and other developing continents have more disposable income and want to buy cars, they cannot buy brand new cars but can purchase used cars.

Not only are their scammers trying to buy cars with bad checks, but some people will just waste their time and yours. These “tire kickers” have no real interest in buying a car and just want someone to troll.

Turning to professional car sellers for help

The best way to sell a used car in Canada is to go through a dealership in your area. Dealerships buy and sell cars all the time you may be able to find a new car while trying to sell your old one.

To sell your car to the dealership, you will need to get the registration and lien release certificate that was issued by the company that financed the purchase of the car. You cannot sell a car in Canada unless the lien has been released by the lender, when the buyer of the car tries to register the transaction, the lien will come up and need to be repaid.

Along with the registration and lien release certificate, you can also bring the service record of the vehicle. This will prove the car was well maintained.

If you have followed our suggestions and gone to a local dealership to sell your used car, then you will get paid quickly and avoid all of the risks that come with selling a used car online.

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Categories: sell your car