Automotive

Need help figuring out sequence for selling my car (Ontario)

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  • Dec 11th, 2019 9:25 pm
[OP]
Sr. Member
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Dec 11, 2009
712 posts
265 upvotes
Toronto, ON

Need help figuring out sequence for selling my car (Ontario)

Hey,

I know there are multiple threads about this topic and I read most of them here and on reddit as well but having trouble putting it together for my situation.

My car has a financing on it, at a high level I imagine that the seller will bring a bank draft and we will meet at my bank and I will deposit the bank draft, clearing the loan on my car (loan is with scotiabank and so is my banking) and at the same time I will sign the car transfer document to him.

The main piece that I can fit here is the UVIP package. If I get the UVIP package before this, it will show the lien on the car and at the same time the seller might not want to buy the car without the UVIP... I also don't want to clear my loan until I know for sure that the sale will happen. There is also safety certification to consider, but I guess the seller can do that after the sale on his own?

Can someone help me with figuring out the best order to protect both the seller and buyer? We are trying to conclude this by Thursday so it's a bit tight on time.

Thanks!
10 replies
Deal Addict
Oct 1, 2015
1160 posts
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Barrie, ON
You need to provide the UVIP as a seller, no way around that. I'm assuming you're selling the car as is (ie no safety?) if so that's on the buyer, not your problem. Don't try and hide anything from the buyer, go to the bank, transfer funds, pay off whatever you owe on the car, transfer documents to new owner and you're done.
[OP]
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Dec 11, 2009
712 posts
265 upvotes
Toronto, ON
mxthor3 wrote: You need to provide the UVIP as a seller, no way around that. I'm assuming you're selling the car as is (ie no safety?) if so that's on the buyer, not your problem. Don't try and hide anything from the buyer, go to the bank, transfer funds, pay off whatever you owe on the car, transfer documents to new owner and you're done.
I'm not trying to hide anything. In the sequence you mentioned (seems the same that I suggested) when would you get the UVIP, before all of it? I guess it's ok to get the UVIP even with a Lien on the car? Do you know if it shows the details (e.g.: Amount) of the lien? If so the seller can see that I'm clearing that specific lien at the bank.
Deal Addict
Oct 1, 2015
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Barrie, ON
I've never sold a vehicle with a lien on it, so I don't know if it specifically states an amount or not. Can always call the MTO and ask.
Deal Addict
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Mar 7, 2007
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Yes, you get the UVIP, showing that there is a lien.

As far as I know, it does not have the amount.

In the past, I asked the seller to pay off the lien first, and obtain a letter from the bank / financing co. stating that the lien doesn't exist anymore. Doing it this way requires the seller to have enough money on hand to repay the debt at once. it may not work for all sellers.

The other option is to that the buyer obtains two drafts if necessary, one for the financing co. (to repay the debt) and one additional draft, if needed, for the difference.

Let's say that you agreed on a selling price of $20,000 but you still owe $17,000 on the car. The buyer pays $17,000 directly to the financing co., and the difference to you.
[OP]
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Dec 11, 2009
712 posts
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Toronto, ON
motomondo wrote: Yes, you get the UVIP, showing that there is a lien.

As far as I know, it does not have the amount.

In the past, I asked the seller to pay off the lien first, and obtain a letter from the bank / financing co. stating that the lien doesn't exist anymore. Doing it this way requires the seller to have enough money on hand to repay the debt at once. it may not work for all sellers.

The other option is to that the buyer obtains two drafts if necessary, one for the financing co. (to repay the debt) and one additional draft, if needed, for the difference.

Let's say that you agreed on a selling price of $20,000 but you still owe $17,000 on the car. The buyer pays $17,000 directly to the financing co., and the difference to you.
That's what I'm planning on doing, but I'm not really paying the lien first. I have money to pay the financing off but I Will do it at the same time as we deposit his bank draft into my account (by same time I mean at the same teller one action after the other) so that I'm not in a situation where I clear the financing and the buyer gives up and now I used up a bunch cash that I Wouldn't have used (0% financing).
[OP]
Sr. Member
User avatar
Dec 11, 2009
712 posts
265 upvotes
Toronto, ON
mxthor3 wrote: You need to provide the UVIP as a seller, no way around that. I'm assuming you're selling the car as is (ie no safety?) if so that's on the buyer, not your problem. Don't try and hide anything from the buyer, go to the bank, transfer funds, pay off whatever you owe on the car, transfer documents to new owner and you're done.
If I sell the car "as is", do I need to make a seperate bill of sale indicating that the sale is "as is" to protect myself or is the UVIP enough in that situation?
Deal Addict
Oct 1, 2015
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Barrie, ON
MoreDealsPlease wrote: If I sell the car "as is", do I need to make a seperate bill of sale indicating that the sale is "as is" to protect myself or is the UVIP enough in that situation?
UVIP doesn't state the car has to have a safety. A separate invoice stating that wouldn't hurt.
Deal Addict
Sep 8, 2017
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GTA
MoreDealsPlease wrote: My car has a financing on it, at a high level I imagine that the seller will bring a bank draft and we will meet at my bank and I will deposit the bank draft, clearing the loan on my car (loan is with scotiabank and so is my banking) and at the same time I will sign the car transfer document to him.

The main piece that I can fit here is the UVIP package. If I get the UVIP package before this, it will show the lien on the car and at the same time the seller might not want to buy the car without the UVIP...
MoreDealsPlease wrote: I'm not trying to hide anything...
Yes you are. You're trying to hide the fact that the car has a lien on it. Just be honest with the seller. If they like the car, they won't care about your loan.
[OP]
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Dec 11, 2009
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Toronto, ON
derass wrote: Yes you are. You're trying to hide the fact that the car has a lien on it. Just be honest with the seller. If they like the car, they won't care about your loan.
No I'm not, that's the first thing I told the buyer. Just trying to figure out the correct order to do it and if there is a way to clear the lien at the same time as selling the car so both parties are protected. You just have a dirty mind and assume others do too.
Deal Addict
Sep 8, 2017
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It's a good thing you included that in your post then...

So if that's the case, just have the UVIP ready for the buyer. Explain what you mean by "so both parties are protected". I don't understand the problem.

The UVIP shows current liens. Not a history of them. So the UVIP will show no lien shorty after you pay off the loan. I suppose you could consider that protection for the buyer. What do you need protection from?

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