Buying or Selling a Used Vehicle Privately in Ontario
Private vehicle sales can save money, but they come with no dealer to stand behind them. A few documents and checks protect both the buyer and the seller.
- The seller must give the buyer a Used Vehicle Information Package (UVIP). It shows the vehicle's Ontario registration history and any liens.
- The buyer pays retail sales tax at ServiceOntario when the ownership is transferred, based on the greater of the price paid and the vehicle's listed wholesale value.
- A Safety Standards Certificate is generally needed to register the vehicle with licence plates, and is valid for a limited time.
- A private sale is generally not covered by dealer protections, so write down what was agreed, in a bill of sale.
Documents
- UVIP: the seller buys it and hands it to the buyer. It includes vehicle history in Ontario, the registered owner, any liens and the figure used for tax.
- Bill of sale: both sides sign it. It shows the date, the price, the vehicle identification number, the odometer reading and both parties' names and addresses.
- Vehicle permit: the seller signs the transfer section.
- Safety Standards Certificate: to put the vehicle on the road with plates, usually arranged by the seller and valid for a limited number of days.
- Proof of insurance: the buyer needs it to register and drive the vehicle.
For the buyer
- Check the vehicle identification number against the permit and the UVIP.
- Look at the liens section. A lien means a lender may be able to take the vehicle back, whoever owns it now.
- Get a vehicle history report and an independent mechanic's inspection.
- Pay in a way you can prove, such as a bank draft you have confirmed, and meet at a bank if you can. Be careful with large amounts of cash.
- Transfer the ownership and pay the tax within the time the rules give, which is a matter of days, and get new plates.
For the seller
- Be honest about the condition, accidents and repairs. A false statement can lead to a claim.
- Give the buyer the UVIP and sign the bill of sale. Keep a copy.
- Plates generally stay with the owner, so take yours off. Cancel or change your insurance after the vehicle is transferred.
- Do not sell several vehicles a year for profit without checking the rules, because selling cars regularly as a business requires a dealer registration.
Selling as is
An as-is sale reduces what the buyer can claim afterwards, but it does not excuse lying about the vehicle. A buyer who was misled can still bring a claim in Small Claims Court for misrepresentation, and a seller can be held to what they said in an advertisement or a message.
If something goes wrong
Keep every message, the advertisement, the bill of sale and the receipts. Disputes over a private sale can usually be brought in Small Claims Court. See the guides on Small Claims Court and on a letter of demand.
Common questions
Do I have to pay tax on a car I bought from a friend?
Generally yes. Retail sales tax applies to most private sales, with some exceptions, such as certain gifts between family members. Check with ServiceOntario for the current rules.
The seller will not provide a UVIP. Is that a problem?
Yes. A seller is required to provide one, and refusing is a warning sign. Do not buy without it.
Who can help. Licensed paralegals can represent buyers and sellers in Small Claims Court disputes over a vehicle sale.
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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