Vehicle Trade-In – What You Need to Know (updated)

Steering into your new set of wheels is easy. One way to do it is with a vehicle trade-in in Cambridge. Here we will explore trading in your old car for a new one.

A trade-in is a transaction between a dealership, who is the buyer and a vehicle owner, who is the seller. The vehicle to be traded in would be assessed based on maintenance cost and vehicle history. The value may be then used towards a new or pre-owned vehicle at the car dealer in Cambridge.

Plan Your Trade-In

Before going to a Cambridge dealership, search listings of auto traders for similar vehicles to estimate your vehicle’s value. Comparing local prices gives you an informal estimation of its worth. Also, noting real car reviews from actual owners can be a guide to being a huge success in your trade-in.

Used car dealerships determine value by inspecting the year, make, model, and trim level, thus gathering the used vehicle’s information package for sale price. A trim level will be indicated on your VIN (vehicle identification number) or written near the back area of the vehicle. Any extra features in the vehicle will be noted. The number of kilometers, the appearance and cleanliness of the exterior, including dents and interior, will be examined. Lastly, the prices of similar and local vehicles will be used as a tool in the evaluation. A dealership considers the trade-in’s value as the cost of any repairs or beautification and whether there is potential for profit to resell as a used vehicle. Vehicles may also be sold or auctioned wholesale.

The value of a vehicle depreciates the longer you have it or the older it is. Keeping records and receipts of vehicles’ maintenance can assist in reselling and holding their value. Receipts are gold for proof of value as they provide evidence of pricing. Washing your car’s exterior and detailing the interior will make the best impression for a trade-in. Repairing any damage will ensure the vehicles’ optimal value. For future considerations, a well-maintained vehicle will keep its value better than a neglected vehicle.

If you still pay for the vehicle you want to trade in, read over your formal agreements and legal contracts. This will help to figure out if trading in is a good or possible option for you.

Keeping It Legal in Ontario

When selling a used car, van, light truck (gross weight of 3,000 kilograms or less), self-propelled motor home, or motorcycle in Hamilton Ontario, VIP does not mean what you think it does!

To protect the buyers’ rights, you* must first have Very Important Paperwork available for them to pursue. To ensure that they are making an informed decision and are aware of any potential issues with the vehicle, you are legally** required to provide a used vehicle information package (UVIP) to a purchaser*** when you sell a pre-owned vehicle in the province.

The package will include the following information:

• “The vehicle details (including the year, make, model, colour, body type, cylinders and power)
• A vehicle registration history in Ontario (including all present and previous owners, their city of residence and odometer reading)
• Information about the vehicle currently attached to that plate number
• Vehicle lien information (a lien claimant has a right to the car or the amount owed from you)
• The average wholesale value of the vehicle
• Retail Sales Tax (RST) information
• Vehicle condition (Safety Standards Certificate):
• if it’s mechanically unfit and has not received a Safety Standards Certificate
• if it’s been completely dismantled or crushed
• Bill of sale.”

You can order the used vehicle information package online via Service Ontario for mail delivery to your address on file. If you urgently need the UVIP, it can be purchased in person at any Service Ontario centre and issued the same day.
To complete the transaction, you will need the following:

• The $20 fee that Visa, Mastercard or Interac® Online can pay.
• Vehicle identification number (VIN) OR licence plate number.
• Ontario driver’s licence number, registrant identification number (RIN), or your name and address.

* While anyone can purchase a UVIP, the seller is expected to purchase and complete the package.
** Under the Highway Traffic Act, not providing a UVIP to buyers is an offence. If you buy or sell a vehicle without a UVIP, you could face fines of $100 to $500 for the first offence and $200 to $1000 for a second conviction.
*** Exemptions to providing a used vehicle information package include cases where:

• Your vehicle was sold outside of Ontario.
• You are donating the vehicle to a registered religious, charitable, or benevolent organization as per Canadian Income Tax Act.
• The vehicle is sold or transferred to a hospital, local service board, municipality, school board, university or college.
• It is a prize for registered lotteries and raffles.
• Ownership of the vehicle is being transferred between family members.
• You are buying a used vehicle from a registered dealer.

Note: There is no expiration date on the used vehicle information package.
The UVIP is compulsory, whereas Carfax and CarProof are optional reports.

Being informed of your situation and coming up with a plan can help you get the most value for your trade-in. Contact CRS Automotive Cambridge so that we can find your new car for your vehicle trade-in.
Check our premium used cars inventory here.

We are located only 4 min walking South West of Tim Hortons Field and 4 min walk West of Bernie Morelli Recreation Centre.