Sell a used vehicle

If you are selling a vehicle to a close family member, you may be allowed to transfer ownership of your vehicle to a family member without paying the retail sales tax.

Before you sell a used vehicle, you need to:

  • buy a Used Vehicle Information Package (UVIP)
  • make sure that the Vehicle Identification Number (VIN) on your vehicle matches the number on your permit (your green ownership document)
  • check to ensure the vehicle has no money owing on it

As the seller you are legally required under the Highway Traffic Act to provide the buyer with a UVIP.

Purchase a Used Vehicle Information Package (UVIP)

When you sell

When you sell your vehicle, you need to give the buyer:

  • the Used Vehicle Information Package (UVIP)
  • a signed Bill of Sale with your name, the buyer’s name and address, the date and purchase price
  • a completed and signed Application for Transfer — this is found on the back of an ownership permit, under the vehicle portion
  • a certificate that verifies the vehicle meets safety standards (if required)
    • you will need to get this from a licensed mechanic
    • look for an "Ontario DriveON" sign 

You keep:

  • your licence plates (the plates travel with a driver, not a vehicle)
  • the “plate portion” of your permit (ownership)
    • you will need this if you want to register your plates on another vehicle
    • you can also request a refund for any full months left on your plate stickers if they were required for your vehicle

Finding out if money is owed on a vehicle

A Used Vehicle Information Package (UVIP) will tell you if there is any debt or money owing on your vehicle.

If there is a lien (a form of security put on a vehicle to ensure its owner pays any debt that is outstanding) on the vehicle, you can contact the Ministry of Government and Consumer Services, Personal Property Security Branch, for more information:

Buy a used vehicle

If you are buying a vehicle from a close family member, you may be allowed to transfer ownership of the vehicle from a family member without paying the retail sales tax.

Before buying a used vehicle, you should:

  • check the vehicle history – including maintenance records
  • check the vehicle’s emissions testing history on the emissions testing website
    • You will need the Vehicle Identification Number (VIN) to run this free search.
    • Emissions testing is only required for heavy diesel commercial motor vehicles.
    • Although light passenger and non-diesel vehicles do not require emissions tests, all vehicles on the road are subject to emissions standards.
    • You can ask the vehicle seller to perform an emissions test at an auto service centre and provide you with the results before buying the vehicle to ensure it does not have any emissions problems.
  • make sure the seller is the legally registered owner
  • make sure the VIN on the vehicle matches the one on the owner’s permit
  • request from the seller or purchase a Used Vehicle Information Package (UVIP) and check the lien/debt information
  • look for obvious signs of damage and have your mechanic inspect the vehicle for you
  • test drive the vehicle

When you buy

When you buy a vehicle, ensure the seller gives you the:

  • vehicle portion of the owner’s permit with the completed portion on the back
  • Used Vehicle Information Package (UVIP), including the Bill of Sale with the name of the seller and purchase price.
    • The Bill of Sale must be signed and dated by both the buyer and seller.

Register a used vehicle

You must register your name as the new owner of the vehicle within 6 days of the purchase.

To register the vehicle, you need to visit a ServiceOntario centre and bring the following:

  • proof of insurance
  • your Ontario Driver’s Licence
  • Used Vehicle Information Package (UVIP)
  • Bill of Sale (you can use the bottom of the UVIP which has a dedicated section for this)
  • Safety Standards Certificate (SSC), if applicable
  • annual or semi-annual emission and safety inspection, if applicable
  • if you are registering a pick-up truck and trailer with a registered gross weight over 4,500 kilograms and will be used for personal use, you may need to provide the Annual/Semi-Annual Inspection Declaration Form
  • owner’s permit with the completed Application for Transfer portion on the back
  • odometer reading information

Find a ServiceOntario centre

How do I know if I need an emissions test?

Bill of Sale

You must include the following information on a Bill of Sale for the purchase of a used or new vehicle:

  • vehicle identification number (VIN)
  • make, year and power source for motor vehicles (gas, diesel, electric)
  • body type, colour and model (if available)
  • purchase price (taxes collected and HST/GST number if applicable)
  • name, address and signature of the current owner or dealer or the leasing company (seller)
  • name and address of the buyer
  • sale or purchase date

The bill of sale must be an original document, but it can be handwritten. We will also accept a pre-printed bill of sale with a handwritten HST/GST number.

  • A photocopy or facsimile of the Bill of Sale is acceptable if either:
    • the original is viewed and photocopied at a ServiceOntario centre
    • the original and the photocopy are viewed at the ServiceOntario centre
    • the facsimile is sent directly from the seller to the ServiceOntario centre
  • No other photocopy or facsimile versions of the Bill of Sale is acceptable
  • If the Bill of Sale is completed by a company or a dealer, it must be on the company’s or dealer’s letterhead

Fees

You need to pay fees to register your vehicle. Fees vary based on location and vehicle class.

Tax on used vehicles

Who pays: the buyer pays the sales tax when you register as the new legal owner of the vehicle. You do not pay sales tax to the seller.

How much: In most cases, buyers pay 13% RST in Ontario. The amount is based on the purchase price or the vehicle’s wholesale value, whichever is greater.

Appraisals: If the vehicle is 20 years old or older, you will require an appraisal. For more information, read about Specified vehicles from the Ministry of Finance.

Tax exemptions: You do not need to pay sales tax if you are:

  • transferring the vehicle to a close family member as a gift
  • a qualifying diplomat or Status Indian

Finding out the wholesale price of your car

Wholesale value is based on the Canadian Red Book which has the wholesale and retail values of used vehicles. It is an industry standard used by car dealers, insurance companies and other provincial governments.

The values are based on the average amounts paid for vehicles of the same year, make and model. They don’t take into account:

  • optional equipment
  • vehicle condition
  • mileage.

These values can change from the day you pick up the Used Vehicle Information Package (UVIP) to the day the vehicle is transferred.

If you paid less than the Canadian Red Book value

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.

Protect yourself from fraud and identify theft

Be cautious of anyone asking you to register a vehicle for them under your name. If a vehicle is used to commit a crime and is registered under your name, you can face criminal charges.

When buying a vehicle

  • look out for discrepancies in the Used Vehicle Information Package (UVIP): stolen vehicles will often have errors in their vehicle histories, such as being the wrong color or having wrong odometer readings
  • make sure to physically inspect the VIN of a used vehicle to ensure the paperwork matches and has not been altered
  • take the vehicle to a trusted mechanic to get an inspection
  • check the information on the vehicle permit to confirm that the name matches the person selling you the vehicle

When selling a vehicle

  • remove your licence plates from a vehicle andreturn them to a ServiceOntario Centre or keep them securely stored until needed
  • regularly check your licence plates for alterations or plate swaps

If you notice anything suspicious or suspect fraudulent activities, call the police.

Emissions test

Heavy diesel commercial motor vehicles

Used heavy diesel commercial motor vehicles with a model year older than the current year require a valid emissions test pass when they are sold in order to transfer the ownership.

Applicable vehicles include transport trucks, pickup trucks, delivery vans, buses, tow trucks, dump trucks and cement trucks that have a registered gross weight of more than 4,500 kg and run on diesel fuel.

Light passenger vehicles and heavy non-diesel vehicles

As of April 1, 2019, light passenger vehicles (most cars, vans, SUVs and light trucks) and heavy non-diesel vehicles no longer require an emissions test.