Automotive

[Ontario] Are Transfer Appraisals foolproof and allowable by the MTO for private sales?

  • Last Updated:
  • Feb 4th, 2020 9:06 pm
[OP]
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Apr 21, 2004
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[Ontario] Are Transfer Appraisals foolproof and allowable by the MTO for private sales?

Going to buy a car off a friend and someone on RFD tipped me off that when he sold a car, the buyer saved a lot on HST by doing this Transfer Appraisal. Any other places to get this done cheap since it seems it can be done online with photographs and a few other details?


https://www.markhamfinchauto.com/types-of-appraisals

Buying a car privately?

Save money on taxes when transferring owners of a vehicle. We will try to LOWER the appraised value of your vehicle to CUT YOUR HST TAX Cost. Any model, any year

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10 replies
Deal Addict
Sep 21, 2011
1653 posts
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Lol I’m not sure but let me know though lol this is the new thing to get around that black book valve from mto which shouldn’t be charged again and again and again when you transfer cars like what the hell is that about.
[OP]
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Apr 21, 2004
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shawn01 wrote: Lol I’m not sure but let me know though lol this is the new thing to get around that black book valve from mto which shouldn’t be charged again and again and again when you transfer cars like what the hell is that about.
I will PM you if I succeed :)
Deal Fanatic
Sep 10, 2008
6039 posts
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Kitchener
I bought a non-running '08 Ford Fusion SEL AWD V6 from my coworker for $1000. Wholesale value according to the used vehicle information package was $4000. After purchasing, I had it appraised in non-running condition at a value of $1000. When I took the paperwork to the MTO, they used the $1000 appraised value.
Sr. Member
May 2, 2017
739 posts
958 upvotes
Per the MTO:
https://www.ontario.ca/page/buy-or-sell ... le-ontario
If you paid less than the Canadian Red Book value, you can get the vehicle appraised before changing ownership.

If the appraisal supports a lower price than the Canadian Red Book, you will pay tax based on the higher of the purchase price and the appraised value.
So yes, it can work, but I would strongly advise against committing fraud (having it appraised for less than you paid or reporting you paid less than you did).
Deal Addict
Nov 16, 2011
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HAMILTON
It does work....... have done it in the past.
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Dec 12, 2009
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Toronto
A little off topic. Be mindful of low ball appraisals and how that will affect insurance assuming that the car will be insured for collision.
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[OP]
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Apr 21, 2004
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will888 wrote: A little off topic. Be mindful of low ball appraisals and how that will affect insurance assuming that the car will be insured for collision.
Do MTO transaction data get transmitted to insurers?

I'm not condoning fraud and if appraisers were doing the en masse, the MTO would have shut that avenue down.
Deal Addict
Sep 8, 2017
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GTA
I had to do a transfer appraisal. And I remember somewhere in the process I was told that a transfer appraisal, and an insurance appraisal are different. The insurance appraisal is more detailed.

I don't think the sale price reported to MTO gets communicated to your insurance company. They just go by blackbook/market value.

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