Selling or buying a used car in Ontario
Steps for the Seller
- Determine the value and asking price for your car;
- Optional: get the car cleaned and take good photos;
- Advertise the car for sale (Kijiji, Autotrader, Craigslist, Facebook marketplace);
- By law, you have to obtain the Used Vehicle Information Package (“UVIP”) from Services Ontario and provide to the buyer;
- It is highly recommended you purchase a vehicle history report;
- Enable car inspections and test drives to the buyers (the tips on how to safely preform test drives can be found on our FAQ page);
- To speed up the sale, you can obtain safety standard certificate from a mechanic, valid for 36 days – the buyer will have to take this steps before registering the car.
After you agree on sale with a prospective buyer:
- Fill out the bill of sale portion of the UVIP and record the date and purchase price or generate you own bill of sale;
- Complete and sign the Application for Transfer located on the back of the “vehicle portion” of the permit (registration) and give it to the buyer, write name and address of the buyer, record the mileage, the date of sale, and sign the form;
- Accept the agreed-on payment (the tips on how to safely accept payments can be found on our FAQ page);
- Cancel (or transfer to a new car) the insurance;
- Remove the licence plates – return the old plates to the government for cancellation and/or refund or keep them for the next car.
- Keep the “plate” portion of the ownership document – it is needed if the plates are returned or reused.
Ready to sell? We can help you with your transaction HERE.
Steps for the Buyer
- Decide how to finance the car (cash or loan) – we can assist you with finding a financing solution (you can send us an inquiry through FAQ page or chose this option in the buyer’s form);
- Read the information included in UVIP (check the lien/debt info);
- Check out a suspicious vehicle history – purchase the vehicle history report if not provided by the seller;
- Inspect the car and test drive it (for tips on how to safely perform a test drive see our FAQ page).
Once you agree with the Seller:
- Apply for the financing (if not paying in cash);
- Transfer the money to the seller (the tips on how to safely transfer money to the Seller can be found on our FAQ page);
- Determine the taxes/fees necessary for the car registration transfer (taxes are determined as 13% on minimum value from UVIP or purchase price);
- Obtain an insurance – request a call from an insurance agent (you can send us an inquiry through FAQ page or chose this option in the buyer’s form);
- Obtain safety standard certificate (SSC) from a mechanic (if not provided by the seller and if intention is to drive the vehicle immediately – the details on how to obtain SSC are on the FAQ page);
- Go to Service Ontario within six days of buying the car with the following: valid insurance information, the SSC, the application for transfer (at the back of the vehicle portion of permit), driver’s licence or other identification, plate portion of permit from your old car (if using existing licence plates), UVIP, sufficient funds for payment for tax, vehicle registration fees and, if required, new licence plates. We can also assist you with car registration and do all the work for you – visit our Car Registration page;
- UVIP is required to transfer the registration – if the Seller did not provide you with UVIP, you will have to purchase it at the Service’s Ontario.
Ready to buy? We can help you with your transaction HERE.