Automotive

Transfer of Car Ownership (as Gift, Not From Family Member/Spouse)

  • Last Updated:
  • Feb 28th, 2007 11:50 am
Newbie
Feb 15, 2007
37 posts

Transfer of Car Ownership (as Gift, Not From Family Member/Spouse)

boyfriend is giving me his car as a gift to cruise around in until we are able to sell it or until I trade it in for my new car (which I am saving up for) except that when i switch ownership, it becomes complicated!!!!
either scenario a or b:
a) i switch ownership by pretending there was a sale of goods and going through the ministry of transportation steps for this (ie. get a UVIP, etc, etc).
b) it is a transfer of ownership from a family member except MTO only allows this from linear family (ie. sibling, father/father-in-law, mother/mother-in-law)

So.... how should I go about this? Has anyone done this before...? :!:
:confused:
23 replies
Sr. Member
Aug 31, 2004
523 posts
20 upvotes
Ottawa
As I read between the lines, you want to avoid paying GST/PST if the transaction was from a family member. No pretending, you don't qualify.

That leads to your plan B if you have one - marry him. Check with B/F first.

This leads to plan C - no nead to transfer the car to you, if married.
Deal Addict
Nov 2, 2003
1134 posts
1 upvote
Hamilton
just say da actual price u paid for da car was $1 cuz he's ur bf that u've dated for 10 yrs
Sr. Member
Apr 24, 2006
924 posts
3 upvotes
And they'll probably assume you're scamming them and charge tax on fmv.
There's also option D. Move to Alberta and then transfer ownership. No GST on private sales???
Deal Addict
Nov 2, 2003
1134 posts
1 upvote
Hamilton
say he's ur cousin then. i didn't kno that $1 is da owest price i can say when i sold my 98 eclipse to sum random dude. i ended up paying like $2 in tax, i told them i sold da car for $50.
Deal Addict
Jul 29, 2006
4253 posts
1078 upvotes
They charge whichever is the highest price (either wholesale or sale price)
There is an exception though because the red book value may not apply to some cars, in which case the tax will be based on sale price.
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
justlam_ wrote: say he's ur cousin then.
That would involve lying on an affidavit under oath...
Payment of retail sales tax is not required when a vehicle is a gift and is being transferred between close family members, which only includes a spouse, parent, step-parent, grand-parent, son, daughter, grandson, step-grandson, granddaughter, step-granddaughter, son-in-law, daughter-in-law, father-in-law or mother-in-law. Only one tax-free transfer per vehicle is allowed every 12 months.

A statement sworn before a Commissioner of Oaths will be required for certain transfers, such as gifts between family members and transfers for insurance purposes. Diplomats and Status Indians who qualify will be able to complete a transfer without paying tax by simply showing their identity card.
You probably want to consult a lawyer about the potential consequences of this...
Deal Addict
Aug 1, 2004
1302 posts
29 upvotes
Markham
"Cousins" do not fall under the MTO's definition of close family members, so that would not work. Also, unless you two are married/common law, you would not be able to do a tax-free transfer.

Basically, to transfer the vehicle, you will have to pay PST based on the wholesale value of the car as printed on the UVIP (which you will have to purchase), even if there was no monetary exchange. However, if the wholesale value is < $1000, then you won't have to pay any PST (since no monetary exchange).

Then, you would need to get a safety cert. and a valid emissions test. The plates cannot be transferred, so you'll need to get a new set of plates + validation sticker.
Newbie
Feb 15, 2007
37 posts
Not sure what I should do now..

According to my boyfriend, the ownership is under his brother's name.
So that indirectly relates me even more so.....
Please let me know what you guys think.

Also, the car is lowered and cannot be certified for safety and emission test, we had to test it two times recently to pass so it will definitely not pass this time around (if it had to in order for the transfer).

I don't mind paying tax, the UVIP records, etc (seems small and insignificant) but I would really not like to pay my boyfriend's brother $3000 (market value) for the car when it is a gift.
Jr. Member
Jul 1, 2005
198 posts
4 upvotes
If you have your own insurance policy.
and that car you are driving is insured.

Given that you have an agreement with the owner of the car.
You could just drive it.
Deal Fanatic
Jul 30, 2003
6633 posts
1249 upvotes
Toronto
^^ Possibility

I suggest call the MTO directly and talk to them anonmysly(?)
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Sr. Member
User avatar
Apr 21, 2004
903 posts
117 upvotes
Pickering
heart_veemars wrote: Not sure what I should do now..

According to my boyfriend, the ownership is under his brother's name.
So that indirectly relates me even more so.....
Please let me know what you guys think.

Also, the car is lowered and cannot be certified for safety and emission test, we had to test it two times recently to pass so it will definitely not pass this time around (if it had to in order for the transfer).

I don't mind paying tax, the UVIP records, etc (seems small and insignificant) but I would really not like to pay my boyfriend's brother $3000 (market value) for the car when it is a gift.
The MTO won't check that money had actually been exchanged (just the emissions, etc), you just have to pay PST on the higher of the UVIP value or the sale price. You can say the sale was $1, but you have to pay PST on the value printed in the UVIP. Doesn't matter how much the value is because private sale you only pay the PST.
Deal Addict
Mar 31, 2003
4250 posts
155 upvotes
Cambridge
v33k wrote: If you have your own insurance policy.
and that car you are driving is insured.

Given that you have an agreement with the owner of the car.
You could just drive it.
Yes try this. Get yourself listed with whoever is carrying the insurance. Of course this will cost $$ but you were planning on being insured anyway.

Since you are planning to sell/trade the car anyway there is little point in transferring the ownership.
Deal Addict
User avatar
Aug 13, 2005
3444 posts
71 upvotes
Peterborough
you could do what I'm doing right now and just get Insurance on the car, and write a bill of sale with no date on it this way if you get pulled over just says you just bought the car and haven't switched it over yet.
Deal Addict
Jul 29, 2006
4253 posts
1078 upvotes
Scottie wrote: you could do what I'm doing right now and just get Insurance on the car, and write a bill of sale with no date on it this way if you get pulled over just says you just bought the car and haven't switched it over yet.
what's going to happen when you get pulled over by the same cop 2 weeks later?
Deal Fanatic
User avatar
Jul 27, 2004
7557 posts
67 upvotes
Scottie wrote:you could do what I'm doing right now and just get Insurance on the car, and write a bill of sale with no date on it this way if you get pulled over just says you just bought the car and haven't switched it over yet.
so what plate are you using on the car then?
Back for a limited engagement.
Deal Addict
Nov 2, 2003
1134 posts
1 upvote
Hamilton
i did. he told me u r gay lol
VivienM wrote: That would involve lying on an affidavit under oath...



You probably want to consult a lawyer about the potential consequences of this...
Deal Fanatic
User avatar
Oct 17, 2006
5309 posts
275 upvotes
905
you can just simply add your name on the ownership instead of changing it to. no sales are being done
Deal Addict
Aug 1, 2004
1302 posts
29 upvotes
Markham
molala wrote: you can just simply add your name on the ownership instead of changing it to. no sales are being done
You cannot simply add a name to an ownership. It is treated as a vehicle transfer - from an individual to two individuals. It does not matter if the individual is going to be part of the joint ownership or not. :!:
Deal Addict
User avatar
Aug 13, 2002
3307 posts
26 upvotes
Why do you need to transfer it at all? Just drive it until you decide to sell.

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