Are You Liable for a Car After You Sell It?

If you decide to sell your car, there's no shortage of things you have to worry about, from determining what it's worth and preparing it for sale to figuring out where to sell it and negotiating with your buyer. Even after all that is over, you have to make sure you handle all of the paperwork properly, or you might still be liable for your vehicle even after you handed the keys over to a stranger. If you're thinking about selling your car privately, here are a few things you should be aware of before you start to avoid common pitfalls.

What Are the First Steps to Selling a Car?

If you're selling your car privately, you're taking on a fair amount of work. For one thing, you'll have to set a price. Set it too low, and you're leaving money on the table, set it too high, and you'll have a hard time finding a buyer. You'll want to do some research to see what your particular model is worth. Beyond just the make, model, and year, factors like mileage, colour, service history, number of previous owners, and whether the car has been smoked in can affect your vehicle's value.

Once you've done that, you need to get your car ready for sale. That means giving it a full cleaning, inside and out. You may want to consider making minor repairs if you have a cracked windshield, chipped paint, or burned-out lightbulbs. You should also get your car inspected by a professional so that buyers will be assured that it's safe and roadworthy.

Lastly, make sure you gather any relevant documents and records. If you've saved your maintenance records, they can help prove that you've kept up to date with oil changes and tune-ups. Check if you still have the original owner's manual, as the buyer may want it. You should also make sure you have any spare keys and keyfobs.

Listing Your Vehicle for Sale

Many used car shoppers search online, so you'll want to create an online listing on one or more popular websites. Most people won't trust a listing that doesn't have photographs, so make sure to take some of both the exterior and the interior, then write an advertisement that describes the car, its features, and its history. While you should put plenty of information about the vehicle, be wary of putting too much personal information out there. Consider setting up a temporary email address so that you don't have to give out your contact information to strangers.

The Sale Itself

Be prepared to answer probing questions from potential buyers. They'll likely want to know why you're selling, what condition the car is in, and what issues you've had with it in the past. Most buyers will want to take a test drive, which can be a tricky situation when you're dealing with a stranger on your own. First, make sure that your insurance covers your vehicle while other people are driving the car. Always ask to see the buyer's driver's licence ahead of time and either make a copy of it or take a picture of it. Consider having a friend or family member come with you to the inspection, meet in a public location during the day, and take any valuables out of your car before meeting up with the buyer.

Before you meet with a potential buyer, know how low you're willing to negotiate and hold firm if they try to go below that. Once you've settled on a price, you need to consider what forms of payment you're willing to take. Cash and bank drafts are the most secure. Personal cheques and wire transfers are more susceptible to fraud, so you should avoid them if possible.

Finalizing the Sale

The legal requirements for a private car sale are different in each province, and you need to make sure that you've followed all of the proper protocols if you want to be positive that you're no longer liable for the vehicle. In Alberta, the buyer and the seller are required to sign a bill of sale that lists the names and addresses of both parties, provides a complete description of the vehicle (including make, model, year, style, colour, and VIN), and states the final price. It is recommended that the bill of sale also include the odometer reading, the method of payment, and where the vehicle was last registered. You and the buyer should both keep a copy for your own records.

In order to register the vehicle in their name, the buyer will need this bill of sale along with proof of insurance and valid identification. If the buyer already has a licence plate, they can transfer it to the vehicle. You should either transfer your licence plate to a new car of your own or cancel it. Once the sale is complete, make sure you contact your insurance company and give them all the details about the sale so you can get your coverage cancelled. Leaving your license plate on the car you sold or failing to cancel your insurance coverage may leave you liable for the new owner's actions.

What Risks Are Involved in Private Sales?

Since you're handling everything yourself, you have to be extremely careful every step of the way. You could be liable if something goes wrong at some point during the sale, such as if you don't fill out the Bill of Sale properly or the test drive goes awry. In some cases, you may simply end up wasting your time, but you could potentially end up losing a lot of money or dealing with shady characters. Remember that not everyone is who they say they are online, so you always need to be careful to vet everyone you interact with and watch your back.

Is There an Alternative to Selling Privately?

If you think private sales sound like a lot of hassle and personal risk, then you're not alone. Many people have horror stories from private car sales gone awry, either because they got scammed by someone with bad intentions or because of a simple mistake that got out of hand. Luckily, there is another way. Here at Northside Mitsubishi, we make it easy for you to avoid spending all that time and effort trying to sell your car by offering you the chance to trade in your vehicle.

Instead of doing extensive research, you can get the value of your car in ten seconds or less on our website. Rather than composing a listing and looking for a buyer, you can bring it to us and let our experienced experts handle all the paperwork needed to finalize the deal. When you sell privately, selling your old car and buying your next one are two separate transactions, but when you trade your vehicle in with us, you can simply apply its value toward the purchase of your next new or used car. Of course, we can also simply write you a check if you aren't looking for a new car today.

Here at Northside Mitsubishi, we're always looking for ways to make your car-buying experience more accessible, less stressful, and faster. Offering trade-ins is just one way that we do this. If you want to save yourself a headache and a lot of paperwork, just let us take care of everything so you can spend more time doing what you love. Contact us today to get started.