Buying a Used Car in Ontario
Buying a used car from a private seller saves money but involves more paperwork than buying from a dealer. Here is what to check, what to bring, and how to register the vehicle in your name.
📦
UVIP Required
From seller
💰
Tax at Registration
13% RST
📅
Register Within
6 days
🔧
Safety Cert
36-day validity
Before You Buy: Due Diligence
Run a CARFAX Canada report ($49.99). It shows accident history, service records, lien status, and whether the vehicle was imported from the US. The UVIP only shows Ontario registration history; CARFAX covers all of Canada and the US.
Match the VIN everywhere. Check the VIN on the dashboard (visible through the windshield), the driver's door jamb sticker, and the UVIP. All three must match. If they do not, walk away.
Get a pre-purchase inspection (PPI). This is a thorough mechanical inspection by a mechanic of your choice. It costs $150 to $250 and catches problems a Safety Standards Certificate inspection would not. A PPI checks everything from engine health to transmission condition to hidden rust.
Check the UVIP for liens. If the vehicle has an outstanding loan or debt attached to it, the lender has a legal claim on the vehicle. Do not buy a vehicle with liens unless the seller can prove they will be paid off at closing.
Compare the odometer reading on the UVIP against the current odometer. If the current reading is lower, the odometer has been rolled back. This is fraud.
Verify the seller's identity. Ask to see their driver's licence. The name on the licence should match the name on the vehicle ownership permit. If someone else is selling a car "for a friend", proceed with extreme caution.
Step-by-Step: Buying and Registering
1Agree on a price with the seller. Negotiate after your PPI. The PPI report gives you specific repair costs to use as leverage.
2Get insurance before you take the vehicle. Call your insurance company or broker and arrange coverage for the specific vehicle. You need an active insurance policy before ServiceOntario will register it. Most insurers can bind coverage by phone within a few minutes if you have the VIN.
3Receive the UVIP from the seller. The seller is legally required to provide a Used Vehicle Information Package. Review it for liens, odometer history, and the wholesale value (which affects your tax). If the seller does not have a UVIP, they must buy one ($20) before the sale.
4Confirm the Safety Standards Certificate. Check that the SSC is valid (dated within the last 36 days). You can verify it on the DriveON portal using the VIN. If the seller does not have one, you are buying "as-is" and cannot drive the vehicle until you get your own SSC.
5Complete the paperwork. Fill out and sign the bill of sale section in the UVIP. The seller signs over the vehicle portion of the ownership permit (the back of the green permit). Both of you record the sale price, date, and both names.
6Pay the seller securely. A certified bank draft from your bank is the safest method. E-transfers work for smaller amounts. Avoid cash for large sums. Never pay before verifying all documents.
7Collect from the seller: the UVIP with the signed bill of sale, the vehicle portion of the ownership permit (signed over to you), the Safety Standards Certificate (if provided), and all keys and accessories.
8Register the vehicle at ServiceOntario within 6 days. Bring everything listed in the next section. You will pay 13% RST, a $32 registration fee, and a plate fee if you need new plates.
What to Bring to ServiceOntario
The completed Used Vehicle Information Package (with signed bill of sale)
The vehicle portion of the ownership permit, signed by the seller
A valid Safety Standards Certificate (dated within 36 days)
Proof of insurance for the vehicle (insurance card or pink slip in your name)
Your Ontario driver's licence
Payment for 13% RST on the sale price or wholesale value (whichever is higher)
Payment for the $32 registration fee
Your existing licence plates (if transferring from another vehicle) or payment for new plates (~$59)
Understanding the Tax
When you register the vehicle, ServiceOntario charges 13% Retail Sales Tax. The tax is calculated on whichever is higher: the price you paid (written on the bill of sale) or the Canadian Red Book wholesale value (listed in the UVIP).
This means if you negotiate a great price below wholesale value, you still pay tax on the wholesale value. Conversely, if you overpay, you pay tax on the actual price.
Example: You buy a car for $9,000. The UVIP lists a wholesale value of $11,000. You pay 13% RST on $11,000 = $1,430 in tax.
Example: You buy a car for $15,000. The UVIP lists a wholesale value of $11,000. You pay 13% RST on $15,000 = $1,950 in tax.
Example: You buy a car for $15,000. The UVIP lists a wholesale value of $11,000. You pay 13% RST on $15,000 = $1,950 in tax.
If you buy from a family member for significantly below market value, you may need a sworn statement (family gift form) to potentially avoid the higher tax assessment. ServiceOntario staff can advise you during registration.
Buying As-Is vs With a Safety Certificate
With Safety Certificate
Drive today
The seller provides a valid SSC. You can put plates on the vehicle and drive it home legally. The vehicle meets minimum safety standards as of the inspection date. Higher purchase price, but fewer surprises.
Bought As-Is
Cannot drive yet
No SSC provided. You pay less but take on risk. You must arrange your own inspection ($80-$150) and fix any failed items before the vehicle can be plated. You cannot legally drive the vehicle until you have an SSC, so you need to tow it home or have the inspection done where the car sits.
Family Transfers
If the vehicle is a gift from an eligible family member (parent, child, grandparent, grandchild, sibling, spouse, or in-law), you do not need a UVIP and you may be exempt from RST. Both parties must complete a "Sworn Statement for a Family Gift of a Used Motor Vehicle" in front of a commissioner of oaths, notary public, or lawyer.
You still need a Safety Standards Certificate (unless transferring between spouses) and proof of insurance to register the vehicle.
Protecting Yourself From Scams
The seller refuses to provide a UVIP. This is legally required. No UVIP, no sale.
The name on the ownership permit does not match the seller's ID. The person selling the car must be the registered owner.
The seller wants a deposit before you see the car. Never pay anything before inspecting the vehicle in person.
The seller pressures you to skip a PPI. A legitimate seller has nothing to hide. If they refuse to let your mechanic inspect the car, walk away.
The price is dramatically below market value. A $25,000 car listed for $8,000 is either seriously damaged, stolen, or a scam.
The seller only accepts unusual payment methods (wire transfer, cryptocurrency, money order to a third party). Stick to bank drafts or e-transfer.
Curbsiders. These are unlicensed dealers who pretend to be private sellers. They often flip multiple vehicles, hide damage, and roll back odometers. If the seller has multiple cars for sale or meets you at a random parking lot rather than their home, it may be a curbsider. Report suspected curbsiders to OMVIC.
Total Cost to Expect
13% Retail Sales TaxOn sale price or wholesale value, whichever is higher13% of value
Vehicle registration fee$32
New licence plates (if needed)If transferring plates from another vehicle, no fee~$59
Insurance (first payment/deposit)Varies widely by driver, vehicle, and provider$100-$400/mo
Pre-purchase inspection (optional but recommended)$150-$250
CARFAX Canada report (optional but recommended)$49.99
Quick math: A $10,000 used car will cost approximately $10,000 (price) + $1,300 (tax) + $32 (registration) + $59 (plates) + ~$200 (first month insurance) = about $11,600 before optional costs. Budget accordingly.
Frequently Asked Questions
Is there a cooling-off period after buying a used car from a private seller?
No. Ontario has no cooling-off period for private vehicle sales. Once the bill of sale is signed and money changes hands, the sale is final. This is why a pre-purchase inspection is so important. The only exception is if the seller committed fraud (forged documents, concealed major damage, etc.), in which case you would pursue a civil claim.
Can I use the seller's plates to drive the car home?
No. Plates belong to the person, not the vehicle. The seller must remove their plates before you take the car. You need to either transfer your own plates from another vehicle, buy new plates at ServiceOntario, or have the car towed to your location.
Can I drive the car before registering it?
Only if you have transferred your existing plates to the new vehicle, have valid insurance, and have a valid SSC. You cannot drive an unplated, uninsured vehicle on Ontario roads. If you do not have plates to transfer, you must tow the vehicle or have it delivered.
What if the car has an existing lien?
Do not buy it unless the seller pays off the lien before or at the time of sale. If you register a vehicle with an active lien, the lender retains a legal claim on the vehicle and can repossess it from you, even though you paid the seller. Check the UVIP lien section carefully.
What is the difference between buying privately and buying from a dealer?
Dealers are regulated by OMVIC (the Ontario Motor Vehicle Industry Council). They must disclose known defects, provide a warranty on certified vehicles, and handle all registration paperwork for you. Private sellers have fewer obligations. The trade-off is that dealer prices are typically higher. When buying from a dealer, you pay 13% HST (not RST) and the dealer handles the UVIP and registration.