Buying used car from friend. Process?

[PureSolidness]

I'm buying a used car from my friend for sub 500$, is there anyone kind enough to run me through the process of transferring it over? We are both clueless when it comes to this topic all we know is you must transfer ownership and something about "gifting" it over is preferable?

Any advice/links on how to complete this paperwork would be greatly appreciated I live in Ontario if that makes a difference.
THANKS

[DaHonga]

Since you guys aren't family, you're going to have to pay tax on it but it will be almost negligible if you're paying less than $500 for it.
Go to MTO together, your friend might need to purchase UVIP for $20, then do up a transfer of ownership, get new plates and stickers (prove you have insurance) and you're good to go.

[elton5354]

Isn't the tax based on what the car retails for and not how much your friend sells it to you for?

I received a car from a friend for free, but was charged tax based on the retail value of the used car.

www.vmrcanada.com

[Insomniac05]

Well first of all, he will need to sign over the ownership. It's one half of the back of the green slip - he fills it out, signs it, detaches it, gives it to you.
Then, Bill of Sale. You can either fill that out in the UVIP package that costs $20 at the MTO, or write it at home and print it out. It needs to state the car make/model, vin number, names of seller, buyer, and signatures. However, I think you will need to buy the UVIP anyway when you register the car at mto. I remember when I bought my 2nd car, the guy had a Bill of Sale he printed at home, but when I registered the car I still had to pay $20 to get the UVIP package.
And yea, when registering say it's a gift so you don't have to pay taxes.
Then when it's insured and plated you can drive it.


EDIT: the taxes also depend on the model year of the car. Most recently, I bought a 1998 car worth ~$2000 and a 2001 car worth ~4500 and didn't have to pay taxes for either (although i did). ie. the ministry's value was $0. I believe when the car is 10+ yrs old their value is $0. Now I wasn't 100% sure of that, so I said both times that I paid x,xxx for it, and ended up paying ~$200 taxes both times -__-

[PureSolidness]

Thanks guys, RFD definitely is the most helpful forum when I need help with anything

So let me get the steps straight.
1. Sign over ownership

Well first of all, he will need to sign over the ownership. It's one half of the back of the green slip - he fills it out, signs it, detaches it, gives it to you.

This green slip is seprate from UVIP?

2. Bill of sale, this is the UVIP I get from MTO? I should bring my friend with me when doing this and...

3. ...at the same time as filling out the UVIP, I get it registered? And state than that its a gift?

4. When I want to drive it insure it and plate it, but if I don't need to drive immediately it I can just tow it to my house, throw it in the garage untill needed (most likely winter) and plate it and insure it than?

EDIT: the taxes also depend on the model year of the car. Most recently, I bought a 1998 car worth ~$2000 and a 2001 car worth ~4500 and didn't have to pay taxes for either (although i did). ie. the ministry's value was $0. I believe when the car is 10+ yrs old their value is $0. Now I wasn't 100% sure of that, so I said both times that I paid x,xxx for it, and ended up paying ~$200 taxes both times -__-

The model car is a yr 2000, so if I tell them all the details of the model yr and that I paid $500ish dollars, chances are I won't get charged? (edit:with taxes)

[starboy869]

You won't be getting out of paying taxes. Gift thing only works between family members and that's a slighly different process.

When it's time to go on the road you'll need a safety check and an e-test. Both can make the $500 car turn into a $2000 car very easily.

[ShadowVlican]

get the UVIP.. u'll need it either way

it'll tell you how much tax you'll be paying

http://www.mto.gov.on.ca/english/dan...cle/used.shtml

[niroopg]

http://www.mto.gov.on.ca/english/dan...cle/used.shtml

And you can't get out of taxes. You may taxes at MTO based on the price you paid or wholesale, which ever is higher.

And you shouldn't be buying the car until the seller shows the Safety Certificate and E-test. If you buy it before hand, and it is deemed unsafe, you may incur rediculous cost to get it certified or you won't be able to register it.

[PureSolidness]

Thanks for the tips guys. OK, I've made peace with having to pay taxes

When it's time to go on the road you'll need a safety check and an e-test. Both can make the $500 car turn into a $2000 car very easily.

And you shouldn't be buying the car until the seller shows the Safety Certificate and E-test. If you buy it before hand, and it is deemed unsafe, you may incur rediculous cost to get it certified or you won't be able to register it.

This car is from a longtime friend so I'm hoping there's no surprises (he already stated it needs breaks and an oil change). He did drive it all the way up untill he got his new car about 1.5months ago, so I'm guessing in that time of sitting in his driveway it shouldn't go unsafe/uncertifiable to horrendously costly levels. I won't be driving it for a while anyways as I have a summer car but, nonetheless Ill obviously still be taking a good look at it before I hand over any cash.

[niroopg]

Thanks for the tips guys. OK, I've made peace with having to pay taxes





This car is from a longtime friend so I'm hoping there's no surprises (he already stated it needs breaks and an oil change). He did drive it all the way up untill he got his new car about 1.5months ago, so I'm guessing the safety and e-test should still be valid. I won't be driving it for a while as I have a summer car but, nonetheless Ill obviously still be taking a good look at it before I hand over any cash.

Safety cerification, for the purposes of ownership transfer, are only valid for 36 days. It will have to be redone before you can transfer ownership at MOT and register the vehicle.

E-test papers are valid 12 months from testing.

[PureSolidness]

Safety cerification, for the purposes of ownership transfer, are only valid for 36 days. It will have to be redone before you can transfer ownership at MOT and register the vehicle.

E-test papers are valid 12 months from testing.

Thanks for the info, so this means for him to give it to me he must re-insure it and get it re-plated so he can drive it to a shop to get it safety'd? Edit: or if the safety certification is expired, is he even able to get this uncertified car re-insured/plated to be able to drive it to get certified? It's a almost a catch22

[niroopg]

Thanks for the info, so this means for him to give it to me he must re-insure it and get it re-plated so he can drive it to a shop to get it safety'd?

How you get it to the shop is your choice. I would get it towed to the shop over getting it replated by the owner lol - I think towing is cheaper and easier than getting it reinsured and replated just for safety. Or you can push it.

[PureSolidness]

How you get it to the shop is your choice. I would get it towed to the shop over getting it replated by the owner lol - I think towing is cheaper and easier than getting it reinsured and replated just for safety. Or you can push it.

OK thanks, one last thing, for the 36days - valid 36days from what point? From the time he took the plates/insurance off and put it on his new car?

[niroopg]

OK thanks, one last thing, for the 36days - valid 36days from what point? From the time he took the plates/insurance off and put it on his new car?

From the issuance of the certificate itself. A Safety Certificate must be provided by an authorized mechanic at a government approved Motor Vehicle Inspection Station. When I got the Safety certificate done for my Acura TL (from a dealership) they charged $130 + tax. I'm sure if you go to a private mechanic that is approved, you can get it for less.

[PureSolidness]

From the issuance of the certificate itself. A Safety Certificate must be provided by an authorized mechanic at a government approved Motor Vehicle Inspection Station. When I got the Safety certificate done for my Acura TL (from a dealership) they charged $130 + tax. I'm sure if you go to a private mechanic that is approved, you can get it for less.

Hey man thanks for all the help, much appreciated

Just one concern about the registration process

So I plan on buying the car from him this week but won't be driving it till winter time (so I will store it in my garage unplated/uninsured till sept/oct). So I can buy it off him, but it can't be registered/transferred over to me till I get it safety certified? I read on http://www.mto.gov.on.ca/english/dan...e_purchase.pdf

"5. Get a Safety Standards Certificate if the vehicle will be plated and operated on the roads."

Does this mean though I can still get it registered and transferred over without the safetly certificate as long as its not plated/insured and on the roads.

This is just a sticking point for me as paying 130ish for safety when registering than it expiring in 36days and than paying another 130 again when I plate/insure it in sept. vs just paying in sept when I put it on the road, could mean the difference between me buying it or not as the car is worth 500+1safety test, but not 500+2safety tests