Automotive

Max Number Of Private Car Sales Per Year in Ontario

  • Last Updated:
  • Aug 24th, 2021 3:38 pm
[OP]
Newbie
Jan 2, 2021
34 posts
24 upvotes

Max Number Of Private Car Sales Per Year in Ontario

Hello,

I am a car enthusiast and tend to change cars every few months. All my cars are bought used, saftied, registered by me and insured and then driven for awhile before selling privately. I sometimes make a profit on the sales and sometimes I lose money so definitely not running it like a business.

My question is if there is a hard limit on the number of private sales I can do per year without becoming a dealer in Ontario? I usually do 3-4 sales per year and haven't ran into any trouble but wanted to know.
7 replies
Deal Expert
User avatar
Jul 30, 2007
31895 posts
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Toronto
The past rule or maybe still current is 4 ?? But then I don't think there is a real tracking system in the MTO that will monitor your activities.

Even OMVIC won't likely be able to track you and deems you as a "dealer" who is not properly licensed if you do sell many in a given year.
Deal Addict
Dec 24, 2009
1143 posts
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Just because you don't make a profit doesn't make it not a real business, look at Tesla :P
Deal Addict
Oct 13, 2014
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Just Moved To Somewh…
booblehead wrote: The past rule or maybe still current is 4 ?? But then I don't think there is a real tracking system in the MTO that will monitor your activities.

Even OMVIC won't likely be able to track you and deems you as a "dealer" who is not properly licensed if you do sell many in a given year.
I could be wrong and I am not bothering to check, however I do not think there is any legislated rule. As long as an individual is registering the vehicle, the MTO is thus collecting the sales tax and they are happy. It is the curb siders who do not register thus fail to pay any sales tax.
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Deal Expert
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Feb 11, 2007
19456 posts
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GTA
AshKetchum wrote: Hello,

I am a car enthusiast and tend to change cars every few months. All my cars are bought used, saftied, registered by me and insured and then driven for awhile before selling privately. I sometimes make a profit on the sales and sometimes I lose money so definitely not running it like a business.

My question is if there is a hard limit on the number of private sales I can do per year without becoming a dealer in Ontario? I usually do 3-4 sales per year and haven't ran into any trouble but wanted to know.
What kind of enthusiast are you? Never heard one that gets rid of cars that quickly. Unless your enthusiasm is to fix them and flip them.
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[OP]
Newbie
Jan 2, 2021
34 posts
24 upvotes
engineered wrote: What kind of enthusiast are you? Never heard one that gets rid of cars that quickly. Unless your enthusiasm is to fix them and flip them.
I do indeed enjoy fixing them myself but I most often lose money when I sell them. My goal isn't to make a profit, I just like driving different types of cars and working on them.
Deal Addict
Sep 13, 2012
2377 posts
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Vaughan, ON
Ken_vs_Ryu wrote: Just because you don't make a profit doesn't make it not a real business, look at Tesla :P
Hehe

If I’m not mistaken their profit margin was 1% per vehicle recently?

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