Why Banks Are Saying “No” — But You Can Still Sell Your Car (and for Top Dollar)
Canada’s Private Car Marketplace for Pre-Approved Buyers
June 18 2025, Published by SkipTheDealerships.ca
If you're trying to sell or trade in your car and keep getting blocked, you're not alone. The landscape of automotive finance in Canada has changed dramatically — and quickly. Traditional banks and dealerships are hitting the brakes hard, leaving everyday people frustrated and stuck.
But here's the opportunity: if you’re a private seller, this market shift is actually working in your favour. Here’s why.
1. Loan Delinquencies Are Surging — Banks Are Pulling Back
Canada is seeing a steep rise in auto loan delinquencies, especially in the subprime and near-prime segments. With repossessions climbing and credit risk increasing, banks are clamping down.
They're reducing how much they’ll lend, tightening their approval criteria, and outright declining any deal that looks even slightly risky — especially if there's negative equity involved. If you’re trying to trade in a vehicle with $10,000 or $20,000 negative equity, most lenders aren’t even looking at the deal.
2. Dealerships Are Lowballing or Refusing Trades
The trade-in game isn’t what it used to be. With used vehicle values slipping and financial institutions turning up the heat, dealerships are backing away from anything they consider high risk.
If you think your trade will help make your next vehicle more affordable, think again. Many dealerships are either drastically undervaluing trade-ins or not accepting them at all. That’s not because your vehicle isn’t worth something — it’s because they can’t get financing on the back-end to make the deal work.
In most cases, your trade is becoming a liability in the eyes of both dealers and lenders.
3. The Private Seller Marketplace Is Where Deals Are Actually Closing
This is where SkipTheDealerships.ca comes in.
We’ve created a platform where pre-approved buyers connect directly with private sellers, with financing, insurance, and even extended warranties available on the spot.
This model works because the buyer already knows what they’re approved for. There’s no “pending financing” drama. No hours wasted at a dealership only to be told “we couldn’t make it work.” If a buyer sees your car, they can buy your car — safely and securely.
Unlike traditional marketplaces, we vet our buyers. We eliminate fraud. And we keep the transaction smooth and verified from start to finish.
4. Dealerships Are Competing for Private Vehicles
Here's the twist most sellers don’t realize: dealerships are now actively buying private inventory.
Why? Because they need vehicles — especially clean, low-kilometre units that they can’t get from the auctions or trade-ins anymore. At SkipTheDealerships, we’ve partnered with dealers across Canada who are ready to bid on your vehicle. Whether you’re an individual seller or a co-op or rental business, if your unit checks the boxes, someone is ready to pay for it.
So even if your car isn’t selling to the public yet — don’t worry. You now have dealers fighting over it behind the scenes.
