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Whether or not it is a good idea to sell your car to a dealership in Ontario depends on your individual circumstances and priorities. Here are some factors to consider:

Pros of selling your car to a dealership:

  • Convenience: Selling your car to a dealership can be a convenient option, as you don’t have to deal with the hassle of advertising your car for sale, showing it to potential buyers, and negotiating the price.
  • Quick sale: A dealership may be able to give you a quick sale, as they may be willing to buy your car on the spot, assuming they are interested in it.
  • Trade-in option: If you’re in the market for a new car, selling your car to a dealership can be a good option if they offer a trade-in program. You can use the value of your old car towards the purchase of a new car.

Cons of selling your car to a dealership:

  • Lower sale price: Dealerships typically pay less for used cars than what you could get if you sold your car privately. This is because the dealership needs to make a profit when they resell the car.
  • Limited negotiation: You may have limited room for negotiation when selling your car to a dealership, as they typically have set prices for the cars they buy.
  • Less transparency: Selling your car to a dealership may be less transparent than selling it privately, as dealerships may not provide you with detailed information on how they determine the value of your car.

Ultimately, whether selling your car to a dealership in Ontario is a good idea depends on your priorities. If convenience and speed are important to you, and you’re willing to accept a lower sale price, selling your car to a dealership can be a good option. However, if you want to get the highest possible sale price and have more control over the selling process, selling your car privately may be a better option.


If you’re looking to sell your car to a dealership in Ontario, here are the steps you can follow:

  1. Research dealerships in your area: Start by researching dealerships in your area that buy used cars. Look for dealerships that specialize in your car’s make and model or that have good reviews and ratings.
  2. Get your car ready: Before selling your car to a dealership, make sure to clean it and remove any personal belongings. It’s also a good idea to gather any maintenance records or other documentation that can help prove the car’s condition and history.
  3. Contact the dealership: Once you’ve identified a dealership you want to sell your car to, contact them and let them know you’re interested in selling your car. You can usually do this by phone or email.
  4. Set up an appraisal: The dealership will typically want to appraise your car to determine its value. They may ask you to bring it in for an inspection or send someone to your location to assess the car’s condition.
  5. Negotiate the price: Once the dealership has appraised your car, they will make you an offer. You can then negotiate the price to try to get the best deal possible. Be prepared to walk away if the dealership is not willing to meet your desired price.
  6. Complete the paperwork: If you agree on a sale price, you’ll need to complete the paperwork to transfer ownership of the car to the dealership. This typically includes signing a bill of sale and providing the necessary vehicle registration and insurance documents.
  7. Receive payment: Once the paperwork is complete, the dealership will pay you for the car. They may give you a cheque or transfer the funds electronically to your account. Make sure to verify that you’ve received payment before handing over the keys.

By following these steps, you can sell your car to a dealership in Ontario with confidence and ease.

Do you pay tax when you sell a car in Ontario?


In Ontario, when you sell a car privately, you do not have to pay sales tax on the sale price of the vehicle. However, the buyer of the car will have to pay the Harmonized Sales Tax (HST) on the purchase price when they register the vehicle with the Ministry of Transportation. The HST in Ontario is currently set at 13%.

If you’re selling a car to a dealership, the dealership will generally take care of the HST and other paperwork associated with the sale, and they will deduct the amount of HST payable from the purchase price they offer you for the vehicle. This means that you won’t have to worry about paying the HST yourself in this case.

How can I get the most money when I sell my car to a dealer?

Getting the most money for your car when selling it to a dealer requires some preparation and negotiation skills. Here are some tips to help you maximize your sale price:

  1. Research the market value: Before selling your car to a dealer, research its market value by checking online classifieds and pricing guides. This will give you an idea of how much your car is worth and will help you negotiate a fair price.
  2. Clean and prepare your car: Make sure to clean and detail your car before selling it to a dealer. A clean car can make a good impression and may result in a higher sale price.
  3. Be upfront about your car’s condition: Be honest about your car’s condition when talking to the dealer. If there are any issues or defects, disclose them upfront. This will build trust with the dealer and may result in a higher sale price.
  4. Consider multiple dealerships: Consider taking your car to multiple dealerships and getting quotes from each one. This will give you an idea of the fair market value of your car and may result in a higher sale price.
  5. Negotiate the price: When negotiating with the dealer, be confident and stick to your desired sale price. Be willing to walk away if the dealer is not willing to meet your price.

By following these tips, you can increase your chances of getting the most money for your car when selling it to a dealer.

What is the best way to sell your car in Ontario?

There are several ways to sell your car in Ontario, and the best way for you will depend on your individual circumstances and priorities. Here are some options to consider:

  1. Sell it privately: Selling your car privately can potentially get you the highest sale price, but it requires more effort on your part. You’ll need to advertise the car, show it to potential buyers, and negotiate the price. You can advertise your car in local classified ads, online marketplaces, or social media platforms.
  2. Sell it to a dealership: Selling your car to a dealership can be a convenient option, as they can offer you a quick sale and may have a trade-in program if you’re looking to buy a new car. However, you may get a lower sale price than if you sold the car privately.
  3. Use a car-buying service: There are car-buying services in Ontario that can purchase your car from you for a fair price. They typically handle all the paperwork and can give you a quick sale.
  4. Auction it off: You can also sell your car at an auction, either in-person or online. This can potentially get you a good sale price, but it also requires some effort on your part to prepare the car for auction and attend the auction.

What is the safest way to sell a used car in Ontario?

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Selling a used car in Ontario can be a safe and straightforward process if you take the necessary precautions. Here are some tips for selling your car safely:

  1. Meet in a public place: When you meet with potential buyers, always do so in a public place, such as a shopping mall or parking lot. Avoid meeting at your home or other private locations.
  2. Bring a friend or family member: If possible, bring a friend or family member with you when you meet with potential buyers. Having someone with you can provide an extra layer of security and make you feel more comfortable.
  3. Verify the buyer’s identity: Before handing over the keys, make sure to verify the buyer’s identity by asking for a driver’s license or other form of government-issued ID.
  4. Take a test drive with the buyer: If the buyer wants to take the car for a test drive, make sure to accompany them. You can also ask to see their driver’s license and take a photo of it for your records.
  5. Get payment before transferring ownership: Once you’ve agreed on a sale price, make sure to get payment from the buyer before transferring ownership of the car. Accepting cash or a certified cheque is typically the safest option.
  6. Sign a bill of sale: Make sure to sign a bill of sale that includes the sale price, date of sale, vehicle make and model, and both the buyer’s and seller’s information. Keep a copy of the bill of sale for your records.

By following these tips, you can help ensure a safe and successful sale of your used car in Ontario.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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