Buying an used car in Ontario

November 10, 2009 10:57 AM

What's the process to buying an used car in Ontario?

I am about to buy an used car from a private seller and so far, I am just using this page from the Ministry of Transportation as my guide. It's a bit overwhelming though compared to buying brand new from the dealer. For example, which party takes care of the safety standards certificate?

Has anyone bought an used car in Ontario recently and can give an overview?

posted by tksh to work & money (7 comments total)

You pay the seller, he/she removes the plate portion, leaving the registration portion which also serves as the bill of sale which you both sign. You arrange insurance, then go into an MTO office to transfer ownership, pay taxes on the listed vehicle value, get plates and sticker if needed. If the car needs work, you get a temporary plate sticker to allow you to get that done (they did away with the paper ones you used to stick in the window).
posted by hungrysquirrels at 1:01 PM on November 10

hungrysquirrels has it... The MTO will make you buy a Used Vehicle Information Package as well.
posted by smitt at 3:15 PM on November 10

Thanks for the info. I can handle the research, hunting, inspecting, negotiating, etc. but the post-purchase paperwork and registration is a pain and confusing (to me).
posted by tksh at 5:12 PM on November 10

I just sold a car and I've bought and sold a few bikes. Safety and E-test (don't forget about the E-test!) just have to get done, it doesn't matter who does them. A safety certificate is good for just over 30 days (34? 39?) and an E-test result is good for a year.

If you're buying the car "certified" then the seller will do the safety (but might not do the E-test -- demand that they do, or else you're getting it as-is for emissions). They'll give you the documents when they give you the registration half of the ownership.

If you're buying it as-is (= not safetied), then the safety is up to you, and it seems like a Catch-22 -- you can't get plates until it's safetied, and you can't get to the garage for inspection until it's plated -- but that's where the temporary registration comes in. A temporary registration doesn't require a safety, just insurance, so that's enough to get the car to the garage for the safety.

Were I buying a used car to drive right away, I'd buy it certified (have the seller do the safety and E-test) and have insurance lined up already (get the VIN from the seller in advance). Then I just have to hit an MTO office and take the plates home and away I go.

Don't forget the MTO's going to charge you GST on the greater of the price on the bill of sale and the average wholesale price (NOT the average retail price) on the UVIP. And since you're in TO you'll have to pay the city car tax as well.
posted by mendel at 8:51 PM on November 12

I forgot the MOST IMPORTANT THING: Buying the UVIP is the responsibility of the seller, and there's a reason for that even if 75% of sellers don't bother: the UVIP has the ownership and lien history of the vehicle.

You want to have it and be satisfied with the ownership history (was it ever written off? does the current seller actually own it?) and the lien history (that no-one has a lien on the car) before you buy it. Finding out with the registration in hand that you just bought a car that still has a lien is not good.
posted by mendel at 8:54 PM on November 12

Sigh, figures. The MTO will charge you PST on a private sale, not GST.
posted by mendel at 8:56 PM on November 12

Oh, good thing I checked back else I would've missed mendel's answer. Thanks for the additional info!
posted by tksh at 5:39 PM on November 19