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How to Sell a Car in Newfoundland and Labrador

Map of Newfoundland and Labrador

Selling a used car can be a great way to get extra cash, but it does require some effort to do it right. When selling privately in Newfoundland and Labrador, there are important steps to follow in order to transfer ownership legally and safely. Knowing what to do ahead of time will ensure the process goes smoothly for both buyer and seller.

With the proper preparation, pricing, advertising, and paperwork, you can maximize your sale price and avoid any issues down the road. There are also common mistakes to watch out for, as private sales don’t provide the protections of dealing with a licensed dealer. By understanding the ins and outs of the private sale process in NL, you can sell your used car with confidence.

This guide will walk you through everything you need to know to successfully sell your used car on your own. We’ll cover how to get your vehicle ready to show, determine a fair asking price, market it effectively, screen potential buyers, negotiate the best deal, transfer ownership properly, and more. If you follow these tips for safely conducting a private sale, you’ll be able to get your car sold fast and for top dollar.

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Prepare the Vehicle

Getting your vehicle looking its best and making any needed repairs will help ensure you get the highest selling price. Make sure to do a thorough cleaning, inside and out. Vacuum and shampoo floor mats and upholstery, wash and wax the exterior, clean the engine compartment, etc. Buyers will notice and appreciate a spotless vehicle.

Next, complete any deferred maintenance or repairs – fix oil leaks, change fluids, replace worn brakes/tires, etc. Repair dents, touch up paint, fix broken trim or accessories. Consider replacing items that are too worn like seat upholstery. The investment will likely yield a higher selling price.

Safety is paramount, so complete any needed repairs for safety issues like non-working lights, worn windshield wipers, worn or faulty seat belts, etc. Ensure the vehicle will readily pass the required provincial safety inspection. Consider having it professionally detailed and tuned up by a reputable shop.

In Newfoundland and Labrador, vehicles over 10 years old require a valid Motor Vehicle Inspection report to be sold. Make sure to have a current safety inspection done by an authorized inspection station well before listing the vehicle for sale. The fee varies based on the age of the vehicle.

 

Pricing Your Vehicle

One of the most important steps when selling a used vehicle in Newfoundland and Labrador is properly pricing your car. You’ll want to price it competitively but also maximize your profit. Here are some tips for pricing your used car:

 

Research Prices

Do some research to see what similar vehicles are selling for in your local market. Check listings on sites like Kijiji, Craigslist, and Facebook Marketplace to see what other private sellers are asking for the same make, model, year, mileage etc. This will give you an idea of the market value.

 

Consult the Red Book

The Canadian Red Book provides pricing information on used vehicles. Look up your vehicle by make, model, year and options and it will give you a range for the wholesale and retail value. This can help you decide on an appropriate asking price.

 

Factor in the Condition

The condition of your vehicle will impact the price. Is it in excellent shape with low miles? Then you can price it higher. Does it have a lot of wear and tear? Then you may need to lower the price. Do a thorough inspection and consider the repairs needed when pricing it.

 

Price Competitively

It’s important not to overprice your vehicle. Go a bit below comparable vehicles to generate interest. You can always negotiate up later. An overpriced vehicle usually just sits unsold. Price it competitively to sell it faster.

Taking the time to properly price your used vehicle will help it sell quickly and maximize your profit when selling privately in Newfoundland and Labrador.

 

Advertise the Vehicle for Sale

Getting the word out that your vehicle is for sale is crucial to finding a buyer quickly and for a good price. There are several effective options for advertising your used vehicle for sale in Newfoundland and Labrador:

 

Online Ads

Posting your vehicle for sale online on sites like Kijiji, Craigslist, Facebook Marketplace, and Autotrader can help you reach a wide audience of local buyers. Make sure to include plenty of details and high-quality photos to attract potential buyers. Pricing competitively for your area can also help your ad stand out.

 

Dealership Consignment

Many dealerships offer consignment services where they will market and sell your used vehicle for a commission. While you may sacrifice some profit, dealers can expose your vehicle to more buyers. Ask any dealers you’re considering about their fees, timeframes, and policies.

 

Signs/Flyers

Simple signs or flyers posted in high-traffic locations around your neighbourhood and community are a tried and true way to advertise a used vehicle locally. Focus on key details like make, model, year, mileage, and price to capture attention.

 

Show Potential Buyers the Vehicle

After you start getting inquiries about your vehicle, you’ll need to schedule times for potential buyers to see it in person. Plan to be available on weekends and evenings when most people are free.

When meeting prospective buyers, be prepared to give them all the information you have on the vehicle. Have maintenance records, ownership history, and any other paperwork ready to share. Expect the buyer to take the car for a test drive.

Test drives are your chance to showcase the car. Make sure the car is cleaned out and has a full tank of gas. Ride along during the test drive in case they have any questions. Let them get a feel for how the vehicle handles and drives at different speeds.

Be ready to discuss the full history of the vehicle. Buyers will want to know about previous owners, accidents, major repairs and maintenance performed. Being upfront will establish trust. If you don’t know something, say so rather than guessing.

After the test drive, give the potential buyer time to look over the car and ask you any other questions. Make it easy for them to get all the information they need to make a decision.

 

Receive Offers and Negotiate

Once you start getting inquiries about your vehicle, you’ll have to decide how to respond. Set aside time each day to answer questions promptly and move promising leads along in the process. Here are some tips for managing inquiries and negotiating:

 

Responding to Inquiries

When responding to inquiries, provide the details the buyer requests but don’t overwhelm them with information. Ask clarifying questions to understand if they are serious buyers. Provide clear photos or videos if requested.

Respond to questions related to condition honestly; don’t hide any defects. Set expectations upfront about any issues to avoid problems down the road.

If you receive lowball offers right off the bat, calmly stand by your asking price if you think it’s fair. Let the buyer know you’re willing to negotiate within reason.

 

Negotiating the Price

Many buyers will try to negotiate down the price. Prepare yourself mentally to receive offers below asking and start the negotiation process.

Before accepting an offer, shop it around to any other buyers who have expressed interest. Let them know another buyer has made an offer to encourage competing bids.

Consider factors like the condition of your vehicle, demand in the local market, and how long it’s been listed when negotiating. Research sites like Kelley Blue Book to gauge what’s fair.

Don’t take it personally if a buyer tries to very lowball you on an offer. Politely counter with a price you think is reasonable and see if you can find common ground.

 

Check Buyer’s Financing

One important step before finalizing the sale is to verify the buyer’s financing. If the buyer needs a car loan to purchase your vehicle, make sure the loan has been approved before signing over the ownership. You want to ensure the buyer has been pre-approved for an auto loan through their bank or credit union and has a loan agreement letter. This letter will specify the approved loan amount, interest rate, and terms. Ask to see a copy of their loan approval documentation.

If the buyer is getting financing through a dealership, you may be asked to bring the vehicle there so they can appraise it and finalize the loan. In either case, checking on approved financing first provides protection. You don’t want to sign over the ownership only to later find out their loan was denied. Waiting for confirmed financing eliminates this risk and protects you as the seller.

In some cases, the buyer may be paying with cash or have a loan from a private lender like a friend or family member. Get documentation proving they have funds available before accepting the sale. Require the buyer show a bank statement, cashier’s check, or signed letter from the private lender agreeing to finance the purchase.

Taking the time upfront to verify financing will give you peace of mind that the buyer has the means to pay for the vehicle. This step helps avoid problems down the road and ensures you actually get paid once the sale is complete.

 

Review Bill of Sale

When selling a used vehicle in Newfoundland and Labrador, both the buyer and seller are required to fill out a bill of sale. This is an important document that legally transfers ownership of the vehicle from the seller to the buyer. Here’s what needs to be included on a bill of sale in NL:

 

  • Date of sale
  • Details of the vehicle including make, model, year, VIN, mileage
  • Seller’s name, address, phone number
  • Buyer’s name, address, phone number
  • Sale price of the vehicle
  • Signatures of both the buyer and seller

 

It’s recommended to use a bill of sale template to ensure you capture all required information. You can find free templates online that are compliant with Newfoundland and Labrador laws. The bill of sale should be completely filled out and signed by both parties during the sale. The buyer will need this to transfer the ownership into their name.

If selling a vehicle below wholesale value based on the Red Book, you’ll also need a sworn affidavit declaring the sale price is accurate. This prevents sellers from under-reporting sales prices to avoid paying taxes. Include the affidavit with the bill of sale.

Carefully reviewing the bill of sale protects both buyers and sellers. Make sure all information is correct before signing it. The bill of sale legally transfers ownership and provides proof of the sale details.

 

Sign Over Ownership

Once you’ve agreed on a price and the buyer has paid, it’s time to officially sign the vehicle over to the new owner. There are a few key steps involved in transferring ownership in Newfoundland and Labrador:

 

Sign Ownership Documents

You’ll need to sign over the vehicle registration permit and provide a bill of sale to the buyer. Make sure all information like the vehicle identification number (VIN), sale price, and both parties’ names are filled out accurately.

Both you and the buyer will need to sign and date these documents. Keep a copy for your records too.

 

Notify the Government

Within 10 days of the sale, as the seller you are required to notify the Motor Registration Division of the ownership transfer. You can do this online, by mail, or in person.

Provide details like the plate number, VIN, buyer’s name and address, and date of sale. There is no fee for the seller to report the sale.

The buyer has 10 days to officially register the vehicle in their name. Make sure they know this deadline to avoid late registration penalties.

 

Receive Payment

When you have agreed on a price and are ready to complete the sale, you need to securely receive payment from the buyer. There are a couple options for receiving payment:

 

Cash

Accepting a cash payment allows you to receive the funds immediately and finalize the sale on the spot. However, carrying large amounts of cash has risks, so this option is best for lower-priced vehicles. Be sure to count the cash carefully before handing over the signed ownership.

 

Certified Check

For larger transactions, request a certified check from the buyer’s bank or financial institution. This ensures the funds are available and authentic before signing over the vehicle. Never accept a personal check, as it could bounce after the sale is complete. Meet the buyer at your bank to verify and cash the certified check before handing over your documentation.

Whichever payment method you choose, be sure to transfer ownership only after securely receiving and verifying the funds from the buyer. Never sign over the vehicle before payment has been made.

 

Cancel Insurance

Once you have sold your car and transferred ownership, you’ll want to remove the vehicle from your car insurance policy. Contact your insurance provider and let them know the date you sold the car. They will cancel coverage for that vehicle on your policy effective that date. Make sure you receive confirmation of the updated policy and reduced premium in writing.

If you are keeping the license plates and transferring them to a new car, work with your insurance provider and the motor vehicle registry to properly transfer the plates and update insurance information. There may be fees involved with transferring plates, so be prepared for that.

If you’re not keeping the plates, you’ll need to return them to avoid any registration cancellation fees. Check with the motor vehicle registry on how to go about returning plates. Make sure you get a receipt showing they received the returned plates.

Before cancelling your policy or removing a vehicle, consider how it will impact any multi-car or multi-policy discounts you may be receiving. You may lose discounts which could increase your rates, so take that into consideration.

When you sell a car, be sure to promptly remove it from your insurance policy to avoid paying for unnecessary coverage. Work closely with your insurance provider and motor vehicle registry to remove the car and adjust coverage accordingly.

 

Report the Sold Vehicle

Once you’ve sold your vehicle and received payment, it’s important to notify the Newfoundland and Labrador Motor Vehicle Registration Division that the ownership has changed. This is an essential step, as you want to avoid liability for the vehicle after the sale is complete.

Within 10 days of the sale, the seller must complete the Notification of Transfer of Vehicle form and submit it to motor vehicle registration. This form is available online or can be picked up at any Motor Registration office. The Notification of Transfer provides key details on the sale including:

 

  • Names and addresses of seller and buyer
  • Date of sale
  • Vehicle Identification Number (VIN)
  • Odometer reading on date of sale

 

In addition, you must provide the new owner’s name and address. The buyer will also need this information to officially register the change of ownership into their name.

It’s recommended to submit the Notification of Transfer form by registered mail or in-person at a Motor Registration office. This provides proof you have fulfilled your obligations. Failure to notify motor vehicle registration of a sale can result in fines.

Once submitted, keep the receipt or confirmation for your records. At this point, you have completed the necessary steps to transfer legal ownership and responsibility for the sold vehicle.

 

Common Issues When Selling a Vehicle in Newfoundland and Labrador

Selling a used vehicle privately comes with some common issues that sellers need to be aware of. Being prepared and taking precautions can help avoid problems during the sale process.

 

Avoiding Scams and Dishonest Buyers

Unfortunately, scams do occur when selling vehicles privately. Some common scams to watch out for include:

 

  • Buyers who send fraudulent cashier’s checks or money orders and ask you to wire back any extra funds.
  • Buyers who ask you to ship the vehicle and offer to pay more than asking price.
  • Buyers who back out at the last minute and request their “deposit” back.

 

Protect yourself by only accepting cash or certified funds once the buyer has seen the vehicle in person. Never wire money to strangers. Require buyers to test drive locally. And don’t give out personal or banking details.

 

Disclosing Mechanical Issues

Although it’s not required in Newfoundland and Labrador, you should disclose any known mechanical defects or issues to avoid legal disputes down the road. Be upfront about problems like engine troubles, leakages, worn brakes, damaged exhaust, suspension issues, etc. Providing maintenance records also builds trust with buyers.

Consider getting a safety inspection done before listing the vehicle. This gives you an objective report on the vehicle’s condition. Disclose any issues noted on the inspection report to avoid accusations of hiding problems.

Fixing minor issues can also help sell your vehicle faster and for a higher price. However, weigh the cost of repairs versus the potential profit. Completing basic maintenance like an oil change shows buyers the vehicle has been cared for.

 

Tips and Advice

Selling a used car on your own can seem daunting, but following these tips can make the process easier and help you get the best price:

 

Know the Value

Research sites like Canadian Black Book and autoTRADER to determine the current market value of vehicles similar to yours. Consider the year, make, model, mileage, and overall condition.

 

Clean and Make Minor Repairs

A clean, well-maintained vehicle commands a higher price. Wash, vacuum, remove clutter, touch up paint, fix minor dents/scratches, and replace worn parts like windshield wipers.

 

Take Clear Photos

Take photos that highlight the best features of your vehicle, inside and out. Remove clutter from the background. Capture any recent work done.

 

Write a Strong Ad

Write a detailed, honest ad describing the vehicle’s specs, condition, features, and maintenance history. Note any recent repairs. Include good photos.

 

Ask for Deposits and Verify Funds

When receiving an offer, ask for a deposit to secure the sale. Before finalizing, verify the buyer’s source of funds to avoid fraudulent purchases.

 

Use a Bill of Sale

Use a bill of sale to detail the vehicle information, sale terms, date, buyer/seller info. Both parties should sign it.

 

Don’t Forget Taxes

If selling to a private buyer, remember to charge appropriate sales taxes. Register the sale promptly to avoid issues.

 

Remove Valuables

Before handing over the keys, remove any personal items and disable tracking devices like GPS units. Also provide all sets of keys/remotes.

 

Meet in a Safe Place

Choose a neutral public meeting spot like a bank parking lot for test drives and completing the sale. Bring a friend for extra security if needed.

 

Conclusion

Selling a car privately in Newfoundland and Labrador can be a straightforward process if you follow the proper steps. The key things to remember are preparing the vehicle thoroughly, pricing it competitively, advertising it widely, negotiating fairly, and documenting the sale carefully with a bill of sale. Taking the time upfront to get your vehicle looking and running its best will help attract buyers willing to pay your asking price. Being flexible on pricing and willing to negotiate reasonably will also help close the sale more quickly.

Once you’ve found a buyer, be sure to verify their financing is in order before signing over the ownership. Never sign the car’s registration over until you’ve been paid in full. Make sure to cancel your insurance and report the sale to avoid any issues down the road. If at any point in the process you feel uncertain, don’t hesitate to consult with professionals who can advise you further. With some diligence and patience, you can successfully sell your car on your own in Newfoundland and Labrador.

Questions About Selling Your Car in NL?

To sell a car privately in Newfoundland and Labrador, you need to provide the buyer with the signed vehicle registration permit and bill of sale. The bill of sale should include details like the purchase price, vehicle identification number (VIN), make, model, year, seller’s name and buyer’s name. You may also need to provide a sworn affidavit if the purchase price is below the Red Book wholesale value. Make sure to notify the Motor Registration Division within 10 days of the sale.

 

The main documents you need when selling a car privately in Newfoundland are:

 

– Signed Vehicle Registration Permit

– Bill of Sale including details like price, VIN, make, model, year, seller and buyer info

– Potentially a Sworn Affidavit if the price is below Red Book value

– Proof of valid insurance to drive the car to the buyer

 

You’ll also want to make sure you have keys, owner’s manuals, maintenance records, and safety/emissions testing certificates if required.

When selling a used car privately in Newfoundland and Labrador, you do not need to charge any sales tax. There is no provincial sales tax (PST) on private vehicle sales between individuals. The buyer may need to pay tax when registering the vehicle, but as the seller, you do not collect or remit any sales tax.

The bill of sale is an important document when selling a car privately in Newfoundland. It records key details about the transaction including the purchase price, vehicle details like VIN, make and model, and buyer/seller information. Having a bill of sale protects both the buyer and seller in case any issues arise after the sale. It provides proof that a sale took place on a specific date for that specific vehicle.

If you are selling your used car privately in Newfoundland and Labrador for below the wholesale Red Book value, you can sell it for up to 15% less without needing additional paperwork. If the sale price is more than 15% below Red Book value, you will need to provide a sworn affidavit confirming the agreed upon purchase price. This affidavit gets filed along with the bill of sale.

When buying a used car privately in Newfoundland and Labrador, the buyer will need the signed vehicle registration permit, bill of sale, insurance slip, safety certification if required, ownership history like previous registration documents, and potentially a sworn affidavit if the price is below Red Book. The buyer will use these documents to register the car in their name within 10 days.

Yes, it is possible to sell a car with expired registration in Newfoundland and Labrador. As the seller, you still need to provide the buyer with the vehicle registration permit along with a bill of sale. The ownership can be transferred, but the buyer will have 10 days from the date of sale to register the vehicle in their name or they may face penalties from the Motor Registration Division.

If you have lost your car ownership documents like the vehicle registration permit in Newfoundland, you can request replacements from the Motor Registration Division. You may need to verify details or pay fees for replacements. Make sure you get the documents replaced before attempting to sell the car, as buyers will need those registrations as proof of ownership.

The fee to transfer vehicle ownership when selling or buying a used car in Newfoundland and Labrador is $140. This motor vehicle registration transfer fee allows for changing the name on the permit and title documents. It applies for both private sales as well as dealer sales.

Yes, you can sell your financed vehicle to a private buyer in Newfoundland and Labrador. The process may be more complex though since your bank likely holds the car’s title until you fully repay your auto loan. You’ll need to coordinate with your lender to pay off any remaining loan balance as part of the sale transaction before ownership can be transferred.

If you trade-in a vehicle at a dealership in Newfoundland and Labrador, you will not pay any Provincial Sales Tax (PST) on the trade-in value. The dealer will credit the value of your trade-in against the price of your new vehicle purchase. You only pay PST on the difference, not the full new car price. There is no PST charged on private sale trade-ins.

Yes, it’s important to notify your car insurance company when you sell a vehicle in Newfoundland and Labrador. Let them know the date it was sold. This will allow them to cancel your policy on that car and issue any relevant refunds from the cancellation date. Failing to notify them could leave you paying for unused insurance.

Some common car selling scams reported in Newfoundland and Labrador include buyers paying with fraudulent bank drafts or money orders, attempts to underpay based on “problems” found during a test drive, and fake calls or emails attempting to obtain personal information. Protect yourself by dealing face-to-face in cash only, checking for valid ID and having a bill of sale.

In Newfoundland and Labrador, you should legally keep records related to the private sale of your car for at least 2 years after the transaction. This includes copies of the bill of sale, registration documents provided to the buyer, correspondence with the Motor Registration Division, and any other paperwork exchanges with the buyer. Keep these records safe in case questions arise later.

Your bill of sale should include key details like the date of sale, purchase price, vehicle year, make, model and VIN number, seller’s name and signature, buyer’s name and signature, odometer reading at sale, method of payment, and a statement confirming sale of the vehicle. Including all relevant information protects both the buyer and seller.

 

Some popular places to advertise used cars for sale in Newfoundland include classifieds websites like Kijiji and NL Classifieds, Facebook Marketplace groups focused on local areas or vehicle sales, online sites like AutoTrader.ca, and local newspapers. You can also list the car for sale on community bulletin boards and with used car dealers.

Newfoundland and Labrador requires used vehicles to pass mandatory safety inspections within 90 days before transferring ownership. As the seller, you must provide the buyer with the valid safety certificate. Additional emissions testing is required in certain areas. Ensure any outstanding recalls or issues are also fixed before sale.

Imported vehicles can be more complex to sell privately in Newfoundland and Labrador. Extra documentation from the Registrar of Imported Vehicles is required to confirm legal importation and registered ownership before selling. Work with the buyer to transfer that Importer’s Permit and have them re-register the imported car in their name after sale.

No, the new owner is responsible for arranging their own insurance when they register the car in Newfoundland and Labrador. As the seller, you should cancel your policy effective as of the vehicle’s sale date. Maintaining unused insurance after selling your car will cost you extra in unnecessary premiums.

When selling a used car in Newfoundland and Labrador, you must legally disclose any prior accident history and existing damage to provide transparency to buyers. Be upfront about any collisions, repairs performed, current issues, or deficiencies. Having complete service records and an existing claims history report to share is recommended.

When you sell a car to a private buyer in Newfoundland and Labrador, they must register that vehicle in their name within 10 days of taking ownership. As the seller, you continue to be responsible for that car until the new owner officially registers it. If they fail to transfer it on time, penalties may apply.

 

Prepare the Vehicle

Getting your vehicle looking its best and making any needed repairs will help ensure you get the highest selling price. Make sure to do a thorough cleaning, inside and out. Vacuum and shampoo floor mats and upholstery, wash and wax the exterior, clean the engine compartment, etc. Buyers will notice and appreciate a spotless vehicle.

Next, complete any deferred maintenance or repairs – fix oil leaks, change fluids, replace worn brakes/tires, etc. Repair dents, touch up paint, fix broken trim or accessories. Consider replacing items that are too worn like seat upholstery. The investment will likely yield a higher selling price.

Safety is paramount, so complete any needed repairs for safety issues like non-working lights, worn windshield wipers, worn or faulty seat belts, etc. Ensure the vehicle will readily pass the required provincial safety inspection. Consider having it professionally detailed and tuned up by a reputable shop.

In Newfoundland and Labrador, vehicles over 10 years old require a valid Motor Vehicle Inspection report to be sold. Make sure to have a current safety inspection done by an authorized inspection station well before listing the vehicle for sale. The fee varies based on the age of the vehicle.

 

Pricing Your Vehicle

One of the most important steps when selling a used vehicle in Newfoundland and Labrador is properly pricing your car. You’ll want to price it competitively but also maximize your profit. Here are some tips for pricing your used car:

 

Research Prices

Do some research to see what similar vehicles are selling for in your local market. Check listings on sites like Kijiji, Craigslist, and Facebook Marketplace to see what other private sellers are asking for the same make, model, year, mileage etc. This will give you an idea of the market value.

 

Consult the Red Book

The Canadian Red Book provides pricing information on used vehicles. Look up your vehicle by make, model, year and options and it will give you a range for the wholesale and retail value. This can help you decide on an appropriate asking price.

 

Factor in the Condition

The condition of your vehicle will impact the price. Is it in excellent shape with low miles? Then you can price it higher. Does it have a lot of wear and tear? Then you may need to lower the price. Do a thorough inspection and consider the repairs needed when pricing it.

 

Price Competitively

It’s important not to overprice your vehicle. Go a bit below comparable vehicles to generate interest. You can always negotiate up later. An overpriced vehicle usually just sits unsold. Price it competitively to sell it faster.

Taking the time to properly price your used vehicle will help it sell quickly and maximize your profit when selling privately in Newfoundland and Labrador.

 

Advertise the Vehicle for Sale

Getting the word out that your vehicle is for sale is crucial to finding a buyer quickly and for a good price. There are several effective options for advertising your used vehicle for sale in Newfoundland and Labrador:

 

Online Ads

Posting your vehicle for sale online on sites like Kijiji, Craigslist, Facebook Marketplace, and Autotrader can help you reach a wide audience of local buyers. Make sure to include plenty of details and high-quality photos to attract potential buyers. Pricing competitively for your area can also help your ad stand out.

 

Dealership Consignment

Many dealerships offer consignment services where they will market and sell your used vehicle for a commission. While you may sacrifice some profit, dealers can expose your vehicle to more buyers. Ask any dealers you’re considering about their fees, timeframes, and policies.

 

Signs/Flyers

Simple signs or flyers posted in high-traffic locations around your neighbourhood and community are a tried and true way to advertise a used vehicle locally. Focus on key details like make, model, year, mileage, and price to capture attention.

 

Show Potential Buyers the Vehicle

After you start getting inquiries about your vehicle, you’ll need to schedule times for potential buyers to see it in person. Plan to be available on weekends and evenings when most people are free.

When meeting prospective buyers, be prepared to give them all the information you have on the vehicle. Have maintenance records, ownership history, and any other paperwork ready to share. Expect the buyer to take the car for a test drive.

Test drives are your chance to showcase the car. Make sure the car is cleaned out and has a full tank of gas. Ride along during the test drive in case they have any questions. Let them get a feel for how the vehicle handles and drives at different speeds.

Be ready to discuss the full history of the vehicle. Buyers will want to know about previous owners, accidents, major repairs and maintenance performed. Being upfront will establish trust. If you don’t know something, say so rather than guessing.

After the test drive, give the potential buyer time to look over the car and ask you any other questions. Make it easy for them to get all the information they need to make a decision.

 

Receive Offers and Negotiate

Once you start getting inquiries about your vehicle, you’ll have to decide how to respond. Set aside time each day to answer questions promptly and move promising leads along in the process. Here are some tips for managing inquiries and negotiating:

 

Responding to Inquiries

When responding to inquiries, provide the details the buyer requests but don’t overwhelm them with information. Ask clarifying questions to understand if they are serious buyers. Provide clear photos or videos if requested.

Respond to questions related to condition honestly; don’t hide any defects. Set expectations upfront about any issues to avoid problems down the road.

If you receive lowball offers right off the bat, calmly stand by your asking price if you think it’s fair. Let the buyer know you’re willing to negotiate within reason.

 

Negotiating the Price

Many buyers will try to negotiate down the price. Prepare yourself mentally to receive offers below asking and start the negotiation process.

Before accepting an offer, shop it around to any other buyers who have expressed interest. Let them know another buyer has made an offer to encourage competing bids.

Consider factors like the condition of your vehicle, demand in the local market, and how long it’s been listed when negotiating. Research sites like Kelley Blue Book to gauge what’s fair.

Don’t take it personally if a buyer tries to very lowball you on an offer. Politely counter with a price you think is reasonable and see if you can find common ground.

 

Check Buyer’s Financing

One important step before finalizing the sale is to verify the buyer’s financing. If the buyer needs a car loan to purchase your vehicle, make sure the loan has been approved before signing over the ownership. You want to ensure the buyer has been pre-approved for an auto loan through their bank or credit union and has a loan agreement letter. This letter will specify the approved loan amount, interest rate, and terms. Ask to see a copy of their loan approval documentation.

If the buyer is getting financing through a dealership, you may be asked to bring the vehicle there so they can appraise it and finalize the loan. In either case, checking on approved financing first provides protection. You don’t want to sign over the ownership only to later find out their loan was denied. Waiting for confirmed financing eliminates this risk and protects you as the seller.

In some cases, the buyer may be paying with cash or have a loan from a private lender like a friend or family member. Get documentation proving they have funds available before accepting the sale. Require the buyer show a bank statement, cashier’s check, or signed letter from the private lender agreeing to finance the purchase.

Taking the time upfront to verify financing will give you peace of mind that the buyer has the means to pay for the vehicle. This step helps avoid problems down the road and ensures you actually get paid once the sale is complete.

 

Review Bill of Sale

When selling a used vehicle in Newfoundland and Labrador, both the buyer and seller are required to fill out a bill of sale. This is an important document that legally transfers ownership of the vehicle from the seller to the buyer. Here’s what needs to be included on a bill of sale in NL:

 

  • Date of sale
  • Details of the vehicle including make, model, year, VIN, mileage
  • Seller’s name, address, phone number
  • Buyer’s name, address, phone number
  • Sale price of the vehicle
  • Signatures of both the buyer and seller

 

It’s recommended to use a bill of sale template to ensure you capture all required information. You can find free templates online that are compliant with Newfoundland and Labrador laws. The bill of sale should be completely filled out and signed by both parties during the sale. The buyer will need this to transfer the ownership into their name.

If selling a vehicle below wholesale value based on the Red Book, you’ll also need a sworn affidavit declaring the sale price is accurate. This prevents sellers from under-reporting sales prices to avoid paying taxes. Include the affidavit with the bill of sale.

Carefully reviewing the bill of sale protects both buyers and sellers. Make sure all information is correct before signing it. The bill of sale legally transfers ownership and provides proof of the sale details.

 

Sign Over Ownership

Once you’ve agreed on a price and the buyer has paid, it’s time to officially sign the vehicle over to the new owner. There are a few key steps involved in transferring ownership in Newfoundland and Labrador:

 

Sign Ownership Documents

You’ll need to sign over the vehicle registration permit and provide a bill of sale to the buyer. Make sure all information like the vehicle identification number (VIN), sale price, and both parties’ names are filled out accurately.

Both you and the buyer will need to sign and date these documents. Keep a copy for your records too.

 

Notify the Government

Within 10 days of the sale, as the seller you are required to notify the Motor Registration Division of the ownership transfer. You can do this online, by mail, or in person.

Provide details like the plate number, VIN, buyer’s name and address, and date of sale. There is no fee for the seller to report the sale.

The buyer has 10 days to officially register the vehicle in their name. Make sure they know this deadline to avoid late registration penalties.

 

Receive Payment

When you have agreed on a price and are ready to complete the sale, you need to securely receive payment from the buyer. There are a couple options for receiving payment:

 

Cash

Accepting a cash payment allows you to receive the funds immediately and finalize the sale on the spot. However, carrying large amounts of cash has risks, so this option is best for lower-priced vehicles. Be sure to count the cash carefully before handing over the signed ownership.

 

Certified Check

For larger transactions, request a certified check from the buyer’s bank or financial institution. This ensures the funds are available and authentic before signing over the vehicle. Never accept a personal check, as it could bounce after the sale is complete. Meet the buyer at your bank to verify and cash the certified check before handing over your documentation.

Whichever payment method you choose, be sure to transfer ownership only after securely receiving and verifying the funds from the buyer. Never sign over the vehicle before payment has been made.

 

Cancel Insurance

Once you have sold your car and transferred ownership, you’ll want to remove the vehicle from your car insurance policy. Contact your insurance provider and let them know the date you sold the car. They will cancel coverage for that vehicle on your policy effective that date. Make sure you receive confirmation of the updated policy and reduced premium in writing.

If you are keeping the license plates and transferring them to a new car, work with your insurance provider and the motor vehicle registry to properly transfer the plates and update insurance information. There may be fees involved with transferring plates, so be prepared for that.

If you’re not keeping the plates, you’ll need to return them to avoid any registration cancellation fees. Check with the motor vehicle registry on how to go about returning plates. Make sure you get a receipt showing they received the returned plates.

Before cancelling your policy or removing a vehicle, consider how it will impact any multi-car or multi-policy discounts you may be receiving. You may lose discounts which could increase your rates, so take that into consideration.

When you sell a car, be sure to promptly remove it from your insurance policy to avoid paying for unnecessary coverage. Work closely with your insurance provider and motor vehicle registry to remove the car and adjust coverage accordingly.

 

Report the Sold Vehicle

Once you’ve sold your vehicle and received payment, it’s important to notify the Newfoundland and Labrador Motor Vehicle Registration Division that the ownership has changed. This is an essential step, as you want to avoid liability for the vehicle after the sale is complete.

Within 10 days of the sale, the seller must complete the Notification of Transfer of Vehicle form and submit it to motor vehicle registration. This form is available online or can be picked up at any Motor Registration office. The Notification of Transfer provides key details on the sale including:

 

  • Names and addresses of seller and buyer
  • Date of sale
  • Vehicle Identification Number (VIN)
  • Odometer reading on date of sale

 

In addition, you must provide the new owner’s name and address. The buyer will also need this information to officially register the change of ownership into their name.

It’s recommended to submit the Notification of Transfer form by registered mail or in-person at a Motor Registration office. This provides proof you have fulfilled your obligations. Failure to notify motor vehicle registration of a sale can result in fines.

Once submitted, keep the receipt or confirmation for your records. At this point, you have completed the necessary steps to transfer legal ownership and responsibility for the sold vehicle.

 

Common Issues When Selling a Vehicle in Newfoundland and Labrador

Selling a used vehicle privately comes with some common issues that sellers need to be aware of. Being prepared and taking precautions can help avoid problems during the sale process.

 

Avoiding Scams and Dishonest Buyers

Unfortunately, scams do occur when selling vehicles privately. Some common scams to watch out for include:

 

  • Buyers who send fraudulent cashier’s checks or money orders and ask you to wire back any extra funds.
  • Buyers who ask you to ship the vehicle and offer to pay more than asking price.
  • Buyers who back out at the last minute and request their “deposit” back.

 

Protect yourself by only accepting cash or certified funds once the buyer has seen the vehicle in person. Never wire money to strangers. Require buyers to test drive locally. And don’t give out personal or banking details.

 

Disclosing Mechanical Issues

Although it’s not required in Newfoundland and Labrador, you should disclose any known mechanical defects or issues to avoid legal disputes down the road. Be upfront about problems like engine troubles, leakages, worn brakes, damaged exhaust, suspension issues, etc. Providing maintenance records also builds trust with buyers.

Consider getting a safety inspection done before listing the vehicle. This gives you an objective report on the vehicle’s condition. Disclose any issues noted on the inspection report to avoid accusations of hiding problems.

Fixing minor issues can also help sell your vehicle faster and for a higher price. However, weigh the cost of repairs versus the potential profit. Completing basic maintenance like an oil change shows buyers the vehicle has been cared for.

 

Tips and Advice

Selling a used car on your own can seem daunting, but following these tips can make the process easier and help you get the best price:

 

Know the Value

Research sites like Canadian Black Book and autoTRADER to determine the current market value of vehicles similar to yours. Consider the year, make, model, mileage, and overall condition.

 

Clean and Make Minor Repairs

A clean, well-maintained vehicle commands a higher price. Wash, vacuum, remove clutter, touch up paint, fix minor dents/scratches, and replace worn parts like windshield wipers.

 

Take Clear Photos

Take photos that highlight the best features of your vehicle, inside and out. Remove clutter from the background. Capture any recent work done.

 

Write a Strong Ad

Write a detailed, honest ad describing the vehicle’s specs, condition, features, and maintenance history. Note any recent repairs. Include good photos.

 

Ask for Deposits and Verify Funds

When receiving an offer, ask for a deposit to secure the sale. Before finalizing, verify the buyer’s source of funds to avoid fraudulent purchases.

 

Use a Bill of Sale

Use a bill of sale to detail the vehicle information, sale terms, date, buyer/seller info. Both parties should sign it.

 

Don’t Forget Taxes

If selling to a private buyer, remember to charge appropriate sales taxes. Register the sale promptly to avoid issues.

 

Remove Valuables

Before handing over the keys, remove any personal items and disable tracking devices like GPS units. Also provide all sets of keys/remotes.

 

Meet in a Safe Place

Choose a neutral public meeting spot like a bank parking lot for test drives and completing the sale. Bring a friend for extra security if needed.

 

Conclusion

Selling a car privately in Newfoundland and Labrador can be a straightforward process if you follow the proper steps. The key things to remember are preparing the vehicle thoroughly, pricing it competitively, advertising it widely, negotiating fairly, and documenting the sale carefully with a bill of sale. Taking the time upfront to get your vehicle looking and running its best will help attract buyers willing to pay your asking price. Being flexible on pricing and willing to negotiate reasonably will also help close the sale more quickly.

Once you’ve found a buyer, be sure to verify their financing is in order before signing over the ownership. Never sign the car’s registration over until you’ve been paid in full. Make sure to cancel your insurance and report the sale to avoid any issues down the road. If at any point in the process you feel uncertain, don’t hesitate to consult with professionals who can advise you further. With some diligence and patience, you can successfully sell your car on your own in Newfoundland and Labrador.

Questions About Selling Your Car in NL?

To sell a car privately in Newfoundland and Labrador, you need to provide the buyer with the signed vehicle registration permit and bill of sale. The bill of sale should include details like the purchase price, vehicle identification number (VIN), make, model, year, seller’s name and buyer’s name. You may also need to provide a sworn affidavit if the purchase price is below the Red Book wholesale value. Make sure to notify the Motor Registration Division within 10 days of the sale.

 

The main documents you need when selling a car privately in Newfoundland are:

 

– Signed Vehicle Registration Permit

– Bill of Sale including details like price, VIN, make, model, year, seller and buyer info

– Potentially a Sworn Affidavit if the price is below Red Book value

– Proof of valid insurance to drive the car to the buyer

 

You’ll also want to make sure you have keys, owner’s manuals, maintenance records, and safety/emissions testing certificates if required.

When selling a used car privately in Newfoundland and Labrador, you do not need to charge any sales tax. There is no provincial sales tax (PST) on private vehicle sales between individuals. The buyer may need to pay tax when registering the vehicle, but as the seller, you do not collect or remit any sales tax.

The bill of sale is an important document when selling a car privately in Newfoundland. It records key details about the transaction including the purchase price, vehicle details like VIN, make and model, and buyer/seller information. Having a bill of sale protects both the buyer and seller in case any issues arise after the sale. It provides proof that a sale took place on a specific date for that specific vehicle.

If you are selling your used car privately in Newfoundland and Labrador for below the wholesale Red Book value, you can sell it for up to 15% less without needing additional paperwork. If the sale price is more than 15% below Red Book value, you will need to provide a sworn affidavit confirming the agreed upon purchase price. This affidavit gets filed along with the bill of sale.

When buying a used car privately in Newfoundland and Labrador, the buyer will need the signed vehicle registration permit, bill of sale, insurance slip, safety certification if required, ownership history like previous registration documents, and potentially a sworn affidavit if the price is below Red Book. The buyer will use these documents to register the car in their name within 10 days.

Yes, it is possible to sell a car with expired registration in Newfoundland and Labrador. As the seller, you still need to provide the buyer with the vehicle registration permit along with a bill of sale. The ownership can be transferred, but the buyer will have 10 days from the date of sale to register the vehicle in their name or they may face penalties from the Motor Registration Division.

If you have lost your car ownership documents like the vehicle registration permit in Newfoundland, you can request replacements from the Motor Registration Division. You may need to verify details or pay fees for replacements. Make sure you get the documents replaced before attempting to sell the car, as buyers will need those registrations as proof of ownership.

The fee to transfer vehicle ownership when selling or buying a used car in Newfoundland and Labrador is $140. This motor vehicle registration transfer fee allows for changing the name on the permit and title documents. It applies for both private sales as well as dealer sales.

Yes, you can sell your financed vehicle to a private buyer in Newfoundland and Labrador. The process may be more complex though since your bank likely holds the car’s title until you fully repay your auto loan. You’ll need to coordinate with your lender to pay off any remaining loan balance as part of the sale transaction before ownership can be transferred.

If you trade-in a vehicle at a dealership in Newfoundland and Labrador, you will not pay any Provincial Sales Tax (PST) on the trade-in value. The dealer will credit the value of your trade-in against the price of your new vehicle purchase. You only pay PST on the difference, not the full new car price. There is no PST charged on private sale trade-ins.

Yes, it’s important to notify your car insurance company when you sell a vehicle in Newfoundland and Labrador. Let them know the date it was sold. This will allow them to cancel your policy on that car and issue any relevant refunds from the cancellation date. Failing to notify them could leave you paying for unused insurance.

Some common car selling scams reported in Newfoundland and Labrador include buyers paying with fraudulent bank drafts or money orders, attempts to underpay based on “problems” found during a test drive, and fake calls or emails attempting to obtain personal information. Protect yourself by dealing face-to-face in cash only, checking for valid ID and having a bill of sale.

In Newfoundland and Labrador, you should legally keep records related to the private sale of your car for at least 2 years after the transaction. This includes copies of the bill of sale, registration documents provided to the buyer, correspondence with the Motor Registration Division, and any other paperwork exchanges with the buyer. Keep these records safe in case questions arise later.

Your bill of sale should include key details like the date of sale, purchase price, vehicle year, make, model and VIN number, seller’s name and signature, buyer’s name and signature, odometer reading at sale, method of payment, and a statement confirming sale of the vehicle. Including all relevant information protects both the buyer and seller.

 

Some popular places to advertise used cars for sale in Newfoundland include classifieds websites like Kijiji and NL Classifieds, Facebook Marketplace groups focused on local areas or vehicle sales, online sites like AutoTrader.ca, and local newspapers. You can also list the car for sale on community bulletin boards and with used car dealers.

Newfoundland and Labrador requires used vehicles to pass mandatory safety inspections within 90 days before transferring ownership. As the seller, you must provide the buyer with the valid safety certificate. Additional emissions testing is required in certain areas. Ensure any outstanding recalls or issues are also fixed before sale.

Imported vehicles can be more complex to sell privately in Newfoundland and Labrador. Extra documentation from the Registrar of Imported Vehicles is required to confirm legal importation and registered ownership before selling. Work with the buyer to transfer that Importer’s Permit and have them re-register the imported car in their name after sale.

No, the new owner is responsible for arranging their own insurance when they register the car in Newfoundland and Labrador. As the seller, you should cancel your policy effective as of the vehicle’s sale date. Maintaining unused insurance after selling your car will cost you extra in unnecessary premiums.

When selling a used car in Newfoundland and Labrador, you must legally disclose any prior accident history and existing damage to provide transparency to buyers. Be upfront about any collisions, repairs performed, current issues, or deficiencies. Having complete service records and an existing claims history report to share is recommended.

When you sell a car to a private buyer in Newfoundland and Labrador, they must register that vehicle in their name within 10 days of taking ownership. As the seller, you continue to be responsible for that car until the new owner officially registers it. If they fail to transfer it on time, penalties may apply.

 

Prepare the Vehicle

Getting your vehicle looking its best and making any needed repairs will help ensure you get the highest selling price. Make sure to do a thorough cleaning, inside and out. Vacuum and shampoo floor mats and upholstery, wash and wax the exterior, clean the engine compartment, etc. Buyers will notice and appreciate a spotless vehicle.

Next, complete any deferred maintenance or repairs – fix oil leaks, change fluids, replace worn brakes/tires, etc. Repair dents, touch up paint, fix broken trim or accessories. Consider replacing items that are too worn like seat upholstery. The investment will likely yield a higher selling price.

Safety is paramount, so complete any needed repairs for safety issues like non-working lights, worn windshield wipers, worn or faulty seat belts, etc. Ensure the vehicle will readily pass the required provincial safety inspection. Consider having it professionally detailed and tuned up by a reputable shop.

In Newfoundland and Labrador, vehicles over 10 years old require a valid Motor Vehicle Inspection report to be sold. Make sure to have a current safety inspection done by an authorized inspection station well before listing the vehicle for sale. The fee varies based on the age of the vehicle.

 

Pricing Your Vehicle

One of the most important steps when selling a used vehicle in Newfoundland and Labrador is properly pricing your car. You’ll want to price it competitively but also maximize your profit. Here are some tips for pricing your used car:

 

Research Prices

Do some research to see what similar vehicles are selling for in your local market. Check listings on sites like Kijiji, Craigslist, and Facebook Marketplace to see what other private sellers are asking for the same make, model, year, mileage etc. This will give you an idea of the market value.

 

Consult the Red Book

The Canadian Red Book provides pricing information on used vehicles. Look up your vehicle by make, model, year and options and it will give you a range for the wholesale and retail value. This can help you decide on an appropriate asking price.

 

Factor in the Condition

The condition of your vehicle will impact the price. Is it in excellent shape with low miles? Then you can price it higher. Does it have a lot of wear and tear? Then you may need to lower the price. Do a thorough inspection and consider the repairs needed when pricing it.

 

Price Competitively

It’s important not to overprice your vehicle. Go a bit below comparable vehicles to generate interest. You can always negotiate up later. An overpriced vehicle usually just sits unsold. Price it competitively to sell it faster.

Taking the time to properly price your used vehicle will help it sell quickly and maximize your profit when selling privately in Newfoundland and Labrador.

 

Advertise the Vehicle for Sale

Getting the word out that your vehicle is for sale is crucial to finding a buyer quickly and for a good price. There are several effective options for advertising your used vehicle for sale in Newfoundland and Labrador:

 

Online Ads

Posting your vehicle for sale online on sites like Kijiji, Craigslist, Facebook Marketplace, and Autotrader can help you reach a wide audience of local buyers. Make sure to include plenty of details and high-quality photos to attract potential buyers. Pricing competitively for your area can also help your ad stand out.

 

Dealership Consignment

Many dealerships offer consignment services where they will market and sell your used vehicle for a commission. While you may sacrifice some profit, dealers can expose your vehicle to more buyers. Ask any dealers you’re considering about their fees, timeframes, and policies.

 

Signs/Flyers

Simple signs or flyers posted in high-traffic locations around your neighbourhood and community are a tried and true way to advertise a used vehicle locally. Focus on key details like make, model, year, mileage, and price to capture attention.

 

Show Potential Buyers the Vehicle

After you start getting inquiries about your vehicle, you’ll need to schedule times for potential buyers to see it in person. Plan to be available on weekends and evenings when most people are free.

When meeting prospective buyers, be prepared to give them all the information you have on the vehicle. Have maintenance records, ownership history, and any other paperwork ready to share. Expect the buyer to take the car for a test drive.

Test drives are your chance to showcase the car. Make sure the car is cleaned out and has a full tank of gas. Ride along during the test drive in case they have any questions. Let them get a feel for how the vehicle handles and drives at different speeds.

Be ready to discuss the full history of the vehicle. Buyers will want to know about previous owners, accidents, major repairs and maintenance performed. Being upfront will establish trust. If you don’t know something, say so rather than guessing.

After the test drive, give the potential buyer time to look over the car and ask you any other questions. Make it easy for them to get all the information they need to make a decision.

 

Receive Offers and Negotiate

Once you start getting inquiries about your vehicle, you’ll have to decide how to respond. Set aside time each day to answer questions promptly and move promising leads along in the process. Here are some tips for managing inquiries and negotiating:

 

Responding to Inquiries

When responding to inquiries, provide the details the buyer requests but don’t overwhelm them with information. Ask clarifying questions to understand if they are serious buyers. Provide clear photos or videos if requested.

Respond to questions related to condition honestly; don’t hide any defects. Set expectations upfront about any issues to avoid problems down the road.

If you receive lowball offers right off the bat, calmly stand by your asking price if you think it’s fair. Let the buyer know you’re willing to negotiate within reason.

 

Negotiating the Price

Many buyers will try to negotiate down the price. Prepare yourself mentally to receive offers below asking and start the negotiation process.

Before accepting an offer, shop it around to any other buyers who have expressed interest. Let them know another buyer has made an offer to encourage competing bids.

Consider factors like the condition of your vehicle, demand in the local market, and how long it’s been listed when negotiating. Research sites like Kelley Blue Book to gauge what’s fair.

Don’t take it personally if a buyer tries to very lowball you on an offer. Politely counter with a price you think is reasonable and see if you can find common ground.

 

Check Buyer’s Financing

One important step before finalizing the sale is to verify the buyer’s financing. If the buyer needs a car loan to purchase your vehicle, make sure the loan has been approved before signing over the ownership. You want to ensure the buyer has been pre-approved for an auto loan through their bank or credit union and has a loan agreement letter. This letter will specify the approved loan amount, interest rate, and terms. Ask to see a copy of their loan approval documentation.

If the buyer is getting financing through a dealership, you may be asked to bring the vehicle there so they can appraise it and finalize the loan. In either case, checking on approved financing first provides protection. You don’t want to sign over the ownership only to later find out their loan was denied. Waiting for confirmed financing eliminates this risk and protects you as the seller.

In some cases, the buyer may be paying with cash or have a loan from a private lender like a friend or family member. Get documentation proving they have funds available before accepting the sale. Require the buyer show a bank statement, cashier’s check, or signed letter from the private lender agreeing to finance the purchase.

Taking the time upfront to verify financing will give you peace of mind that the buyer has the means to pay for the vehicle. This step helps avoid problems down the road and ensures you actually get paid once the sale is complete.

 

Review Bill of Sale

When selling a used vehicle in Newfoundland and Labrador, both the buyer and seller are required to fill out a bill of sale. This is an important document that legally transfers ownership of the vehicle from the seller to the buyer. Here’s what needs to be included on a bill of sale in NL:

 

  • Date of sale
  • Details of the vehicle including make, model, year, VIN, mileage
  • Seller’s name, address, phone number
  • Buyer’s name, address, phone number
  • Sale price of the vehicle
  • Signatures of both the buyer and seller

 

It’s recommended to use a bill of sale template to ensure you capture all required information. You can find free templates online that are compliant with Newfoundland and Labrador laws. The bill of sale should be completely filled out and signed by both parties during the sale. The buyer will need this to transfer the ownership into their name.

If selling a vehicle below wholesale value based on the Red Book, you’ll also need a sworn affidavit declaring the sale price is accurate. This prevents sellers from under-reporting sales prices to avoid paying taxes. Include the affidavit with the bill of sale.

Carefully reviewing the bill of sale protects both buyers and sellers. Make sure all information is correct before signing it. The bill of sale legally transfers ownership and provides proof of the sale details.

 

Sign Over Ownership

Once you’ve agreed on a price and the buyer has paid, it’s time to officially sign the vehicle over to the new owner. There are a few key steps involved in transferring ownership in Newfoundland and Labrador:

 

Sign Ownership Documents

You’ll need to sign over the vehicle registration permit and provide a bill of sale to the buyer. Make sure all information like the vehicle identification number (VIN), sale price, and both parties’ names are filled out accurately.

Both you and the buyer will need to sign and date these documents. Keep a copy for your records too.

 

Notify the Government

Within 10 days of the sale, as the seller you are required to notify the Motor Registration Division of the ownership transfer. You can do this online, by mail, or in person.

Provide details like the plate number, VIN, buyer’s name and address, and date of sale. There is no fee for the seller to report the sale.

The buyer has 10 days to officially register the vehicle in their name. Make sure they know this deadline to avoid late registration penalties.

 

Receive Payment

When you have agreed on a price and are ready to complete the sale, you need to securely receive payment from the buyer. There are a couple options for receiving payment:

 

Cash

Accepting a cash payment allows you to receive the funds immediately and finalize the sale on the spot. However, carrying large amounts of cash has risks, so this option is best for lower-priced vehicles. Be sure to count the cash carefully before handing over the signed ownership.

 

Certified Check

For larger transactions, request a certified check from the buyer’s bank or financial institution. This ensures the funds are available and authentic before signing over the vehicle. Never accept a personal check, as it could bounce after the sale is complete. Meet the buyer at your bank to verify and cash the certified check before handing over your documentation.

Whichever payment method you choose, be sure to transfer ownership only after securely receiving and verifying the funds from the buyer. Never sign over the vehicle before payment has been made.

 

Cancel Insurance

Once you have sold your car and transferred ownership, you’ll want to remove the vehicle from your car insurance policy. Contact your insurance provider and let them know the date you sold the car. They will cancel coverage for that vehicle on your policy effective that date. Make sure you receive confirmation of the updated policy and reduced premium in writing.

If you are keeping the license plates and transferring them to a new car, work with your insurance provider and the motor vehicle registry to properly transfer the plates and update insurance information. There may be fees involved with transferring plates, so be prepared for that.

If you’re not keeping the plates, you’ll need to return them to avoid any registration cancellation fees. Check with the motor vehicle registry on how to go about returning plates. Make sure you get a receipt showing they received the returned plates.

Before cancelling your policy or removing a vehicle, consider how it will impact any multi-car or multi-policy discounts you may be receiving. You may lose discounts which could increase your rates, so take that into consideration.

When you sell a car, be sure to promptly remove it from your insurance policy to avoid paying for unnecessary coverage. Work closely with your insurance provider and motor vehicle registry to remove the car and adjust coverage accordingly.

 

Report the Sold Vehicle

Once you’ve sold your vehicle and received payment, it’s important to notify the Newfoundland and Labrador Motor Vehicle Registration Division that the ownership has changed. This is an essential step, as you want to avoid liability for the vehicle after the sale is complete.

Within 10 days of the sale, the seller must complete the Notification of Transfer of Vehicle form and submit it to motor vehicle registration. This form is available online or can be picked up at any Motor Registration office. The Notification of Transfer provides key details on the sale including:

 

  • Names and addresses of seller and buyer
  • Date of sale
  • Vehicle Identification Number (VIN)
  • Odometer reading on date of sale

 

In addition, you must provide the new owner’s name and address. The buyer will also need this information to officially register the change of ownership into their name.

It’s recommended to submit the Notification of Transfer form by registered mail or in-person at a Motor Registration office. This provides proof you have fulfilled your obligations. Failure to notify motor vehicle registration of a sale can result in fines.

Once submitted, keep the receipt or confirmation for your records. At this point, you have completed the necessary steps to transfer legal ownership and responsibility for the sold vehicle.

 

Common Issues When Selling a Vehicle in Newfoundland and Labrador

Selling a used vehicle privately comes with some common issues that sellers need to be aware of. Being prepared and taking precautions can help avoid problems during the sale process.

 

Avoiding Scams and Dishonest Buyers

Unfortunately, scams do occur when selling vehicles privately. Some common scams to watch out for include:

 

  • Buyers who send fraudulent cashier’s checks or money orders and ask you to wire back any extra funds.
  • Buyers who ask you to ship the vehicle and offer to pay more than asking price.
  • Buyers who back out at the last minute and request their “deposit” back.

 

Protect yourself by only accepting cash or certified funds once the buyer has seen the vehicle in person. Never wire money to strangers. Require buyers to test drive locally. And don’t give out personal or banking details.

 

Disclosing Mechanical Issues

Although it’s not required in Newfoundland and Labrador, you should disclose any known mechanical defects or issues to avoid legal disputes down the road. Be upfront about problems like engine troubles, leakages, worn brakes, damaged exhaust, suspension issues, etc. Providing maintenance records also builds trust with buyers.

Consider getting a safety inspection done before listing the vehicle. This gives you an objective report on the vehicle’s condition. Disclose any issues noted on the inspection report to avoid accusations of hiding problems.

Fixing minor issues can also help sell your vehicle faster and for a higher price. However, weigh the cost of repairs versus the potential profit. Completing basic maintenance like an oil change shows buyers the vehicle has been cared for.

 

Tips and Advice

Selling a used car on your own can seem daunting, but following these tips can make the process easier and help you get the best price:

 

Know the Value

Research sites like Canadian Black Book and autoTRADER to determine the current market value of vehicles similar to yours. Consider the year, make, model, mileage, and overall condition.

 

Clean and Make Minor Repairs

A clean, well-maintained vehicle commands a higher price. Wash, vacuum, remove clutter, touch up paint, fix minor dents/scratches, and replace worn parts like windshield wipers.

 

Take Clear Photos

Take photos that highlight the best features of your vehicle, inside and out. Remove clutter from the background. Capture any recent work done.

 

Write a Strong Ad

Write a detailed, honest ad describing the vehicle’s specs, condition, features, and maintenance history. Note any recent repairs. Include good photos.

 

Ask for Deposits and Verify Funds

When receiving an offer, ask for a deposit to secure the sale. Before finalizing, verify the buyer’s source of funds to avoid fraudulent purchases.

 

Use a Bill of Sale

Use a bill of sale to detail the vehicle information, sale terms, date, buyer/seller info. Both parties should sign it.

 

Don’t Forget Taxes

If selling to a private buyer, remember to charge appropriate sales taxes. Register the sale promptly to avoid issues.

 

Remove Valuables

Before handing over the keys, remove any personal items and disable tracking devices like GPS units. Also provide all sets of keys/remotes.

 

Meet in a Safe Place

Choose a neutral public meeting spot like a bank parking lot for test drives and completing the sale. Bring a friend for extra security if needed.

 

Conclusion

Selling a car privately in Newfoundland and Labrador can be a straightforward process if you follow the proper steps. The key things to remember are preparing the vehicle thoroughly, pricing it competitively, advertising it widely, negotiating fairly, and documenting the sale carefully with a bill of sale. Taking the time upfront to get your vehicle looking and running its best will help attract buyers willing to pay your asking price. Being flexible on pricing and willing to negotiate reasonably will also help close the sale more quickly.

Once you’ve found a buyer, be sure to verify their financing is in order before signing over the ownership. Never sign the car’s registration over until you’ve been paid in full. Make sure to cancel your insurance and report the sale to avoid any issues down the road. If at any point in the process you feel uncertain, don’t hesitate to consult with professionals who can advise you further. With some diligence and patience, you can successfully sell your car on your own in Newfoundland and Labrador.

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Questions About Selling Your Car in NL?

To sell a car privately in Newfoundland and Labrador, you need to provide the buyer with the signed vehicle registration permit and bill of sale. The bill of sale should include details like the purchase price, vehicle identification number (VIN), make, model, year, seller’s name and buyer’s name. You may also need to provide a sworn affidavit if the purchase price is below the Red Book wholesale value. Make sure to notify the Motor Registration Division within 10 days of the sale.

 

The main documents you need when selling a car privately in Newfoundland are:

 

– Signed Vehicle Registration Permit

– Bill of Sale including details like price, VIN, make, model, year, seller and buyer info

– Potentially a Sworn Affidavit if the price is below Red Book value

– Proof of valid insurance to drive the car to the buyer

 

You’ll also want to make sure you have keys, owner’s manuals, maintenance records, and safety/emissions testing certificates if required.

When selling a used car privately in Newfoundland and Labrador, you do not need to charge any sales tax. There is no provincial sales tax (PST) on private vehicle sales between individuals. The buyer may need to pay tax when registering the vehicle, but as the seller, you do not collect or remit any sales tax.

The bill of sale is an important document when selling a car privately in Newfoundland. It records key details about the transaction including the purchase price, vehicle details like VIN, make and model, and buyer/seller information. Having a bill of sale protects both the buyer and seller in case any issues arise after the sale. It provides proof that a sale took place on a specific date for that specific vehicle.

If you are selling your used car privately in Newfoundland and Labrador for below the wholesale Red Book value, you can sell it for up to 15% less without needing additional paperwork. If the sale price is more than 15% below Red Book value, you will need to provide a sworn affidavit confirming the agreed upon purchase price. This affidavit gets filed along with the bill of sale.

When buying a used car privately in Newfoundland and Labrador, the buyer will need the signed vehicle registration permit, bill of sale, insurance slip, safety certification if required, ownership history like previous registration documents, and potentially a sworn affidavit if the price is below Red Book. The buyer will use these documents to register the car in their name within 10 days.

Yes, it is possible to sell a car with expired registration in Newfoundland and Labrador. As the seller, you still need to provide the buyer with the vehicle registration permit along with a bill of sale. The ownership can be transferred, but the buyer will have 10 days from the date of sale to register the vehicle in their name or they may face penalties from the Motor Registration Division.

If you have lost your car ownership documents like the vehicle registration permit in Newfoundland, you can request replacements from the Motor Registration Division. You may need to verify details or pay fees for replacements. Make sure you get the documents replaced before attempting to sell the car, as buyers will need those registrations as proof of ownership.

The fee to transfer vehicle ownership when selling or buying a used car in Newfoundland and Labrador is $140. This motor vehicle registration transfer fee allows for changing the name on the permit and title documents. It applies for both private sales as well as dealer sales.

Yes, you can sell your financed vehicle to a private buyer in Newfoundland and Labrador. The process may be more complex though since your bank likely holds the car’s title until you fully repay your auto loan. You’ll need to coordinate with your lender to pay off any remaining loan balance as part of the sale transaction before ownership can be transferred.

If you trade-in a vehicle at a dealership in Newfoundland and Labrador, you will not pay any Provincial Sales Tax (PST) on the trade-in value. The dealer will credit the value of your trade-in against the price of your new vehicle purchase. You only pay PST on the difference, not the full new car price. There is no PST charged on private sale trade-ins.

Yes, it’s important to notify your car insurance company when you sell a vehicle in Newfoundland and Labrador. Let them know the date it was sold. This will allow them to cancel your policy on that car and issue any relevant refunds from the cancellation date. Failing to notify them could leave you paying for unused insurance.

Some common car selling scams reported in Newfoundland and Labrador include buyers paying with fraudulent bank drafts or money orders, attempts to underpay based on “problems” found during a test drive, and fake calls or emails attempting to obtain personal information. Protect yourself by dealing face-to-face in cash only, checking for valid ID and having a bill of sale.

In Newfoundland and Labrador, you should legally keep records related to the private sale of your car for at least 2 years after the transaction. This includes copies of the bill of sale, registration documents provided to the buyer, correspondence with the Motor Registration Division, and any other paperwork exchanges with the buyer. Keep these records safe in case questions arise later.

Your bill of sale should include key details like the date of sale, purchase price, vehicle year, make, model and VIN number, seller’s name and signature, buyer’s name and signature, odometer reading at sale, method of payment, and a statement confirming sale of the vehicle. Including all relevant information protects both the buyer and seller.

 

Some popular places to advertise used cars for sale in Newfoundland include classifieds websites like Kijiji and NL Classifieds, Facebook Marketplace groups focused on local areas or vehicle sales, online sites like AutoTrader.ca, and local newspapers. You can also list the car for sale on community bulletin boards and with used car dealers.

Newfoundland and Labrador requires used vehicles to pass mandatory safety inspections within 90 days before transferring ownership. As the seller, you must provide the buyer with the valid safety certificate. Additional emissions testing is required in certain areas. Ensure any outstanding recalls or issues are also fixed before sale.

Imported vehicles can be more complex to sell privately in Newfoundland and Labrador. Extra documentation from the Registrar of Imported Vehicles is required to confirm legal importation and registered ownership before selling. Work with the buyer to transfer that Importer’s Permit and have them re-register the imported car in their name after sale.

No, the new owner is responsible for arranging their own insurance when they register the car in Newfoundland and Labrador. As the seller, you should cancel your policy effective as of the vehicle’s sale date. Maintaining unused insurance after selling your car will cost you extra in unnecessary premiums.

When selling a used car in Newfoundland and Labrador, you must legally disclose any prior accident history and existing damage to provide transparency to buyers. Be upfront about any collisions, repairs performed, current issues, or deficiencies. Having complete service records and an existing claims history report to share is recommended.

When you sell a car to a private buyer in Newfoundland and Labrador, they must register that vehicle in their name within 10 days of taking ownership. As the seller, you continue to be responsible for that car until the new owner officially registers it. If they fail to transfer it on time, penalties may apply.

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