Questions about the logistics and possible scenarios when buying / selling a car between friends
My nephew and sister will be returning to Ontario in June to live here for good and there's a friend who will leaving Canada (before mid-February) shortly who's selling a car they are interested in.
It seems that my sister/nephew will have to get auto insurance before they can register the vehicle and take possession.
Can the following be future-date so that the seller gets her cash, parks the car on my driveway (not to be driven) and takes off her auto insurance coverage while we wait for sister/nephew to arrive in a few months' time?
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Hmmm, it seems I can put the car under my name first and then transfer to my sister when she arrives but can I do so while limiting any impact on my insurance premiums? I won't be driving the car at all.
https://www.fin.gov.on.ca/en/tax/rst/sp ... icles.html
Gifts between family members
A specified vehicle may be transferred exempt from RST to a person from a member of his or her family provided no consideration was given in respect of the vehicle.
A family member means a father, mother, spouse (which includes a common law spouse), brother, sister, grandfather, grandmother, son, daughter, grandson, granddaughter, son‑in‑law, daughter‑in‑law,
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Can the car be registered only under my sister's name or does her son have to be on the car registration too if both of them will be driving?
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Is there a way to find out ahead of time the blackbook value at which HST will be calculated in case the transaction price will be at a very low amount (way below the Autotrader.ca cash offer)? I've read once on RFD that the blackbook value of a car being sold was not established and so he was free to use a very low transaction price.
https://loanscanada.ca/auto/how-to-priv ... n-ontario/
Get an Insurance
You will need to, of course, get insurance for the vehicle before picking it up as well.
Register and Take Possession of the Vehicle
Once you have the insurance and the money for the car, you can set up a meeting time and place to make the exchange. In addition to transferring the registration, there are a few things/documents you need to have. You will need a bill of sale, vehicle permit with the application to transfer, and the Safety Standards Certificate. Once you have all the necessary documents and the car, you can register it to your name and take possession.
Many, many thanks.
It seems that my sister/nephew will have to get auto insurance before they can register the vehicle and take possession.
Can the following be future-date so that the seller gets her cash, parks the car on my driveway (not to be driven) and takes off her auto insurance coverage while we wait for sister/nephew to arrive in a few months' time?
- bill of sale,
- vehicle permit with the application to transfer,
- Safety Standards Certificate
----
Hmmm, it seems I can put the car under my name first and then transfer to my sister when she arrives but can I do so while limiting any impact on my insurance premiums? I won't be driving the car at all.
https://www.fin.gov.on.ca/en/tax/rst/sp ... icles.html
Gifts between family members
A specified vehicle may be transferred exempt from RST to a person from a member of his or her family provided no consideration was given in respect of the vehicle.
A family member means a father, mother, spouse (which includes a common law spouse), brother, sister, grandfather, grandmother, son, daughter, grandson, granddaughter, son‑in‑law, daughter‑in‑law,
-----
Can the car be registered only under my sister's name or does her son have to be on the car registration too if both of them will be driving?
-----
Is there a way to find out ahead of time the blackbook value at which HST will be calculated in case the transaction price will be at a very low amount (way below the Autotrader.ca cash offer)? I've read once on RFD that the blackbook value of a car being sold was not established and so he was free to use a very low transaction price.
https://loanscanada.ca/auto/how-to-priv ... n-ontario/
Get an Insurance
You will need to, of course, get insurance for the vehicle before picking it up as well.
Register and Take Possession of the Vehicle
Once you have the insurance and the money for the car, you can set up a meeting time and place to make the exchange. In addition to transferring the registration, there are a few things/documents you need to have. You will need a bill of sale, vehicle permit with the application to transfer, and the Safety Standards Certificate. Once you have all the necessary documents and the car, you can register it to your name and take possession.
Many, many thanks.