Buying a used car in Ontario is different in some ways compared to other provinces. The most important distinction is that Ontario supplies a Used Vehicle Information Package (UVIP) through ServiceOntario that vehicle sellers are required to provide to buyers. This package contains critical information that’s important to review carefully before finalizing a sale.
Ontario also has consumer protections through the Ontario Motor Vehicle Industry Council (OMVIC) that are only available if you buy a used car from a registered dealer. In this article, we’ll walk you through the steps for buying a used car in the province.
Buying a Used Car in Ontario
- Step 1: Research
- Step 2: Shop
- Step 3: Investigate
- Step 4: Purchase
- What to do if you find out you were scammed when buying a used car in Ontario
Step 1: Research
Many people think browsing used vehicle listings such as the ones at CarGurus.ca is the logical first step when buying a used car. But aimlessly sifting through listings without direction can be overwhelming.
Take some time to consider exactly what type of vehicle and features you need before you start searching. This could three rows of seats, plenty of cargo space, all-wheel drive, heated seats, or Bluetooth connectivity. If you’re considering an electrified powertrain such as a conventional hybrid, a plug-in hybrid (PHEV), or an electric vehicle (EV), be sure you know the pros and cons of each so you can make an informed decision.
You’ll also want to make sure you know your budget, including monthly payments, insurance, maintenance, parking, and other costs. If you’ll need to take out a car loan, getting preapproved by your bank can save time during the purchase process.
Putting the work into this now will save you time and make it less likely that you’ll end up back at square one later in the process. You can read more about how to choose the best used vehicle for you in our guide to Buying a Used Car in Canada.
Step 2: Shop
Once you know what you’re looking for, you can confidently start searching for vehicles that interest you.
As an Ontario driver, the safest route is to buy from a dealer registered with OMVIC. You can work with a registered dealer either directly or through online vehicle sales listing sites such as CarGurus.ca. These dealers are monitored under the Motor Vehicle Dealers Act and its regulations and code of ethics, which is designed to ensure customers are treated fairly during the car buying process.
Registered dealers also offer the benefit of potentially using your current car as a trade-in, which reduces the final price and the amount you owe in sales tax. Plus, they’ll handle certain parts of the car buying process, such as registering the vehicle and issuing a licence plate.
Used car buyers in Ontario can also deal with private sellers, which sometimes means paying a lower price but involves more legwork. Some buyers find success at vehicle auctions, though this option is best left to those with an eye for spotting potential mechanical issues independently. In both of these cases, the protections under OMVIC won’t be available in the event a deal goes south. Your only recourse will be to take the seller to court.
Beware of curbsiders while browsing online listings. These are individuals who misrepresent themselves as legitimate private sellers, but actually make a business out of flipping vehicles for profit. They engage in scams such as odometer tampering, reselling stolen vehicles, or selling write-offs or flooded cars that can’t legally be registered. If you’re expecting to meet a private seller and find yourself at a lot with many cars, or if at any point a deal seems too good to be true, be prepared to trust your instincts and walk away.
Step 3: Investigate
Once you find a car that seems like a good prospect, follow these steps to thoroughly investigate the vehicle before you commit to a purchase.
In Ontario, the Ministry of Transportation requires all sellers to purchase a Used Vehicle Information Package (UVIP) and provide it to a potential buyer. This package includes documents you’ll need to complete the transaction, such as the bill of sale. It contains much of the same information as a vehicle history report. The UVIP lists the car’s:
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vehicle identification number (VIN)
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make and model year
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odometer reading
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powertrain
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vehicle registration history in Ontario
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brand (also known as insurable status)
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any liens (money owing)
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fair market value, including the minimum amount of sales tax due upon registration
It’s very important to request this package from the seller and review it carefully before agreeing to the sale. Check that the VIN and odometer reading on the documents match with the car, and look for red flags such as a brand (insurable status) of salvage, irreparable, or rebuilt, many previous owners, a current owner that doesn’t match the person or business you’ve been dealing with, or liens (money owing) on the vehicle.
If you want to double-check the information on the UVIP, you could also consider purchasing a vehicle history report from another agency such as CARFAX.
You should also ask the seller for additional information about the vehicle’s history such as whether service records are available, the status of its warranty including any extended warranties, and whether any required recall work has been carried out.
More information on how to verify whether the vehicle is being listed at a fair price, how to check its estimated fuel economy and safety ratings, what to look for during a test drive, and other steps to take before committing to a purchase can be found in our the article about Buying a Used Car in Canada.
Step 4: Purchase
If everything checks out and you decide to purchase the vehicle, the first thing you’ll need to do is arrange a safety-focused vehicle inspection. In Ontario, you’ll need proof of a passed safety inspection to legally put licence plates on the vehicle.
If you purchase from a registered car dealership, the dealer will perform the safety inspection and submit the paperwork as part of the purchase process. In a private sale, you’ll need to arrange this directly with a trusted, licenced mechanic, which costs between $100 and $200 on average. This step can only be skipped if ownership is being transferred between spouses. Be prepared to supply the safety certificate when you visit ServiceOntario to register the vehicle.
Be skeptical if a seller provides a safety certificate. Unscrupulous used car dealers and mechanics sometimes work in tandem to sell vehicles with problems that would otherwise be flagged in an inspection. Once the purchase is complete, there will be little you can do to recoup your losses.
It’s also worth noting that a safety inspection won’t check that comfort features such as the air conditioning or radio are working. Don’t forget to look for those things on your own during the test drive.
Once you’ve got the safety certificate in hand and have settled on a price with the seller, you’ll also need to arrange with your insurance company to update your policy and receive proof of insurance. This will need to be supplied to the dealership or ServiceOntario before the car can be registered.
If you’ve purchased your new vehicle from a dealership, the staff there will help you with registration and charge the required 13% retail sales tax (also known as harmonized sales tax or HST), which they will submit on your behalf. If you complete the purchase privately, you’ll need to pay that tax yourself at ServiceOntario when you register the vehicle.
No matter how much you pay for the car, you’ll be charged either 13% of your purchase price or the wholesale value listed in the UVIP, whichever is higher. You can get an exception to this if you submit a professional appraisal that demonstrates the car’s lower value. If ownership is being transferred between close family members or you have certain special statuses, you may be able to skip paying this tax.
As of April 2019, Ontario no longer requires a DriveClean emission test to be performed before vehicle ownership can be transferred.
If you’re finalizing the registration yourself following a private sale, ensure you arrive at ServiceOntario with all of the following within six days of completing the purchase:
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your driver’s licence
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the full used vehicle information package (UVIP), including the completed bill of sale
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the vehicle owner’s permit with the Application for Transfer portion on the back completed
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a passed safety standards certificate
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proof of insurance
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the vehicle’s current odometer reading
Remember, too, that if you’re buying from a private seller and there are licences plates on the vehicle, the seller will keep those as well as the plate portion of the vehicle registration permit. You’ll be issued new licence plates once the vehicle is registered.
What to do if you find out you were scammed when buying a used car in Ontario
In Ontario, a bill of sale is a binding contract with no cooling-off period. This means that once you and the seller have signed it, your ability to fight back is limited if you later find out you were a victim of fraud. The best prevention is to follow the steps above and in our guide to Buying a Used Car in Canada carefully before completing the sale.
If you get caught in a scam after buying a pre-owned vehicle from a registered dealership in Ontario, OMVIC may be able to help in situations where a dealer:
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tries to change the price or add previously undisclosed fees partway through the sale, especially once the paperwork has been signed
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fails to properly disclose a vehicle’s full history and condition
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delivers a vehicle that doesn’t match the terms of the sale
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misrepresents any repairs made to the vehicle
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similar issues that constitute dealer negligence
When you’ve bought from a curbsider or a private seller and discover you’ve been scammed, there’s unfortunately nothing you can do except attempt to take the seller to court. Scammers have a knack for disappearing after shady sales, so you’ll most likely be out of luck. Protect yourself by thoroughly investigating every aspect you can of a used car before signing the bill of sale. No car, no matter how rare or how good a deal, is worth this kind of hassle. If you sense something is off, trust your intuition and walk away.
