Automotive

Selling Used Car to Used Car Dealer in BC - How to protect myself?

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  • Feb 9th, 2021 8:26 pm
[OP]
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Apr 1, 2001
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Selling Used Car to Used Car Dealer in BC - How to protect myself?

I’m about to sell my used car to a used car dealer (with a storefront) in BC. Reviews on Google are very good (although most reviews come from the dealer being the seller).

As the seller, I don’t want any liability involved with the vehicle as soon as I get paid and hand over the keys.

If this were a private sale between two people (no dealer involved), I could ensure that the new owner goes to ICBC right away to transfer the registration. But if I’m selling it to a dealer, this step wouldn’t be occurring.

Note: I am NOT buying a vehicle from this dealer. Only selling my used car to them.

I’ve read horror stories where people have sold their car privately, but the new owner never ended up registering the vehicle. If they park it illegally without insurance, and it gets towed, the seller would still be the legal owner as per official records and is responsible for the tow/storage bill.

How do I ensure that I’m protected when I sell a vehicle to a used car dealer in BC?

Also, I’m told by the dealer that no taxes are payable on this sale to them (ie they wouldn’t pay me any taxes, and I wouldn’t be responsible for remitting any taxes to the government). I believe that is true — can someone confirm?
8 replies
Deal Expert
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May 10, 2005
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Ottawa
Make your bill of sale state as is where is and no liability after sale is final and vehicle ownership is transferred.
Make sure and go with them to the MTO and make sure the vehicle is officially transferred to their name.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
[OP]
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Apr 1, 2001
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Pete_Coach wrote: Make your bill of sale state as is where is and no liability after sale is final and vehicle ownership is transferred.
Make sure and go with them to the MTO and make sure the vehicle is officially transferred to their name.
Autoplan (ICBC) brokers handle the transfer of ownership here in BC.
This is a sale to a used car dealer - I'm not aware of anyone that is selling their car to a used car dealer going to an Autoplan broker to transfer ownership with the dealer. Maybe I'm mistaken?
Deal Expert
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May 10, 2005
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Arrow wrote: Autoplan (ICBC) brokers handle the transfer of ownership here in BC.
This is a sale to a used car dealer - I'm not aware of anyone that is selling their car to a used car dealer going to an Autoplan broker to transfer ownership with the dealer. Maybe I'm mistaken?
Don't know about BC but even so, I would make sure that the ownership is transferred regardless who buys it.
Point is, and I know this for a fact, some buyers get the car and then sell it again and do not transfer thereby leaving their names off the records. Makes it easy to hide the money and avoid taxes. Even if you sign a bill of sale as is where is, if the person does not transfer the ownership , you will be the last official owner and any consequences of that.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Deal Fanatic
Oct 26, 2008
6362 posts
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BC
Arrow wrote: .........
Also, I’m told by the dealer that no taxes are payable on this sale to them (ie they wouldn’t pay me any taxes, and I wouldn’t be responsible for remitting any taxes to the government). I believe that is true — can someone confirm?
Not sure why you think there would be any tax implications.

When a licensed auto dealer buys your car they are just taking ownership of it on paper.
They are not required to register it (with ICBC) unless they are planning to keep it for personal use rather than turn around and sell it to a retail customer.
That's the whole point of being a licensed dealer.

Curbsiders are different. They bend the rules instead of registering any vehicle they buy and paying the appropriate tax.

If you sell your vehicle privately, it's the buyer who has to be bothered with paying tax when registering it, and again no concern for you the seller.

In the present instance, it's the paperwork the dealer gives you that is your protection. Nothing to worry about compared to a private sale or curbsider sale.
[OP]
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Apr 1, 2001
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macnut wrote: Not sure why you think there would be any tax implications.

When a licensed auto dealer buys your car they are just taking ownership of it on paper.
They are not required to register it (with ICBC) unless they are planning to keep it for personal use rather than turn around and sell it to a retail customer.
That's the whole point of being a licensed dealer.

Curbsiders are different. They bend the rules instead of registering any vehicle they buy and paying the appropriate tax.

If you sell your vehicle privately, it's the buyer who has to be bothered with paying tax when registering it, and again no concern for you the seller.

In the present instance, it's the paperwork the dealer gives you that is your protection. Nothing to worry about compared to a private sale or curbsider sale.
Perfect,
Thanks for this.

They do have a dealer # so it is not a private sale/curbsider situation.

So as long as I have my paperwork indicating that I’ve sold my car to them on __date__, sounds like I am protected.

This process is a little different from a sale to a private buyer (in which case I would go with the buyer to ICBC and actually get ownership transferred on the spot) - hence the reason why I was unsure how to ensure I am not liable for any future actions related to this car.
Deal Fanatic
Oct 26, 2008
6362 posts
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BC
Yes an APV9T is the standard transfer form whether you are selling your vehicle privately or through a dealer.

The form can be picked up from any Autoplan agent, often just on the counter so you don't have to interact with anyone.

Its purpose is to show that your ownership of that vehicle has been transferred to the named person(s).
It is up to them to fill out a different APV form when they (not a dealer) register the vehicle under their name.
In the interim, the APV9T effectively serves to show that the vehicle should no longer considered to be registered under your name.

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