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Buying or selling a used vehicle? Know the facts

January 27, 2023   ·   0 Comments

By Brian Lockhart

If are going to buy or sell a used vehicle in Ontario, you should be aware of the steps to take to make a proper and legal transaction so the vehicle will be on the road in a legal capacity.

Buying a vehicle privately means you should do your homework before finalizing a deal.

You should check the vehicle’s history including maintenance records. This includes checking the vehicle’s emission testing history. This can be done by using the VIN to run a free check on the emissions testing website.

Although light passenger and non-diesel vehicles do not quire emissions tests, all vehicles on the road are subject to emissions standards.

You should make sure the person selling a vehicle is the legally registered owner, and make sure the VIN on the vehicle matches the one on the owner’s permit.

Also, request or buy a Used Vehicle Information Package and check lien/debt information.

Take the vehicle for a test drive, look for obvious signs of damage, and have a certified mechanic inspect the vehicle for you.

When you buy a vehicle ensure that the seller gives you the vehicle portion of the owner’s permit with the completed portion on the back, the Used Vehicle Information Package, including the Bill of Sale with the name of the seller and the purchase price. The Bill of Sale must be signed and dated by both the buyer and the seller.

You must register your name as the new owner of the vehicle within six days of purchase. To register a vehicle, you need to visit a ServiceOntario centre and bring proof of insurance, your driver’s license, the used vehicle information package, the bill of sale, the Safety Standards Certificate (if applicable), the owner’s permit with the complete Application for Transfer portion, and the odometer reading.

The Bill of Sale must include the VIN, make, year, and power source for the vehicle (gas, diesel, electric), body type, colour, and model. It must also include the purchase price.

Some exemptions may apply, for example, when transferring a vehicle to a family member as a family gift. In this case, a Sworn Statement for a Family Gift of a Used Motor vehicle in the Province of Ontario is required.

When selling a used vehicle in Ontario, you need to obtain a Used Vehicle Information Package, and make sure that the VIN on your vehicle matches the number on your ownership document.

When you sell your vehicle, you need to give the buyer the Used Vehicle Information package, and a signed Bill of Sale with your name, the buyer’s name and address, the date and purchase price.

You must provide a completed and signed Application for Transfer found on the back of an ownership permit.

You will also need a certificate that verifies the vehicle meets safety standards (if required), which must be obtained from a licensed mechanic.

When selling, you keep the license plates because plates travel with a driver, not a vehicle.

Follow all these steps to make sure you have transferred legal ownership of a vehicle and maintained the requirements necessary to legally drive the vehicle on a public roadway.

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