Automotive

[Ontario] Advice on selling a car in advance

  • Last Updated:
  • Jan 22nd, 2020 7:20 pm
[OP]
Penalty Box
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Apr 21, 2004
51933 posts
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[Ontario] Advice on selling a car in advance

Are these the only steps the buyer / seller have to follow?
  • seller purchase UVIP and give to buyer once payment is received --> will the UVIP include the wholesale value?
  • Once you find a buyer, record your name and signature as well as the sale price and date on the bill of sale portion of the UVIP
  • seller must also complete and sign the Application for Transfer. This is found on the back of the vehicle portion of the registration permit. You give the vehicle portion to the buyer, and keep the plate portion of the registration permit for yourself.
  • remove your licence plates from the vehicle you are selling
  • buyer gets insurance and temporary car license plate and takes the car for safety inspection -->maybe I'm missing things here and would love to know what they are
  • The buyer must then take the Package to a Driver and Vehicle Licence Issuing Office to be registered as the new owner and pay the required sales tax of 13% (on either the purchase price of the vehicle or the wholesale value, whichever is greater) -> can this package be taken to the MTO a few months after the seller completes the UVIP? The seller is leaving soon but buyer isn't coming until a few months later



https://www.legalline.ca/legal-answers/ ... d-vehicle/

First, if you are selling a used vehicle privately in Ontario, you are required by law to purchase a Used Vehicle Information Package and make it available to prospective purchasers. This package contains information about the history of the vehicle and whether anyone has a claim to the vehicle. For example, if a loan was taken to finance the purchase of the vehicle, the bank will have registered a lien against the vehicle. You can obtain the Package for a cost of $20 from ServiceOntario Driver and Vehicle Online Services or from any Driver and Vehicle Licence Issuing Office. Visit ServiceOntario for a list of Office locations.

Second, you must give the Package to the buyer when the vehicle is eventually sold. Once you find a buyer, record your name and signature as well as the sale price and date on the bill of sale portion of the Package. The buyer must then take the Package to a Driver and Vehicle Licence Issuing Office to be registered as the new owner and pay the required sales tax of 13% (on either the purchase price of the vehicle or the wholesale value, whichever is greater).

Third, as a seller, you must also complete and sign the Application for Transfer. This is found on the back of the vehicle portion of the registration permit. You give the vehicle portion to the buyer, and keep the plate portion of the registration permit for yourself. You will use this plate portion if you decide to put your licence plates on a new vehicle.

Fourth, as a seller, you must remove your licence plates from the vehicle you are selling. You can keep them and use them on your next vehicle. Even if the buyer asks you to, it is best not to leave your licence plates on the vehicle you are selling. If you give your plates to the buyer and the buyer does not have their own vehicle insurance, your insurance will have to pay for the damage if the buyer is in a car accident.


thank you so so much!
6 replies
Deal Addict
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Sep 9, 2012
3714 posts
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Oakville, ON
Firstly, the seller shouldn’t rely on the buyer to go to the MTO and register the sale and take over ownership officially. If the buyer fails to do this they are at risk for racking up up costs as they continue to technically remain as the owner of the vehicle. There’s an active thread now where a seller has been handed a towing & storage bill for a car sold and the buyer failed to register the sale/vehicle.

Secondly, there’s a regulation that the above needs to take place within 6 days of a sale. Not sure of what the penalties/repercussions are of failing to do so, but on the face of things it sounds like this aspect will be a problem in your proposed scenario where you’re talking about a few months of a gap in the process.
Deal Expert
Aug 22, 2011
30938 posts
16710 upvotes
Ottawa
Don't wait for the buyer to register the vehicle and get it updated with MTO as sold ASAP.
[OP]
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Apr 21, 2004
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vkizzle wrote: Don't wait for the buyer to register the vehicle and get it updated with MTO as sold ASAP.
Will the MTO allow the buyer to buy a few months later?

This is between a colleague and my nephew/sister, who are coming back to Ontario for good. So there will be no risks unless the car gets stolen off my driveway.
Last edited by alanbrenton on Jan 22nd, 2020 6:26 pm, edited 1 time in total.
[OP]
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Apr 21, 2004
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If I assume ownership, will another safety be required when I transfer over to my sister?
Deal Addict
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Sep 9, 2012
3714 posts
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Oakville, ON
alanbrenton wrote: If I assume ownership, will another safety be required when I transfer over to my sister?
Yes. You can do a family transfer to avoid tax, however, only a transfer between spouses can avoid a new Safety. If you can tighten up the timeline you can use the original Safety from the first transaction - but you'd only have a 36 day window not a couple of months. An Ontario Safety Standards Certificate is valid for 36 calendar days.

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