How to Buy or Sell a Car Privately in Ontario
Every step, every document, every fee. Follow this checklist so nothing falls through the cracks and nobody gets burned.
The UVIP is legally required for every private vehicle sale in Ontario. It contains the vehicle's registration history, any outstanding liens, branding (rebuilt, salvage, irreparable), and the Canadian Red Book wholesale and retail values.
Order it online through ServiceOntario for $20. You will receive it by email, usually within minutes. You must provide the original or a printed copy to the buyer before the sale.
Get the UVIP before you list the vehicle. If there is an unexpected lien or branding issue, you want to know about it before a buyer does. The UVIP also gives you the Red Book value range, which is useful for pricing.
Take the vehicle to a licensed Motor Vehicle Inspection Station (MVIS) for a safety inspection. If it passes, the mechanic issues a Safety Standards Certificate (SSC). The certificate is valid for 36 days from the date of inspection.
Cost varies by shop, typically $100-$200 for the inspection alone. If the vehicle fails, you will need to repair the identified issues and have it re-inspected.
Some sellers let the buyer arrange the safety inspection. This is legal, but most buyers prefer a vehicle that already has a valid SSC. Having one ready removes a barrier and can justify a higher asking price. Budget $300-$800 for common safety-related repairs (brakes, tires, suspension) if the vehicle is older.
Your licence plates belong to you, not the vehicle. Remove them before the buyer takes possession. You can transfer them to another vehicle, return them to ServiceOntario, or keep them.
If you return the plates, you may be eligible for a refund on any remaining licence plate sticker fees.
Never let the buyer drive away on your plates. If they get into an accident or commit an offence before transferring registration, the plates are traced back to you. The buyer must arrange their own transportation to get the vehicle home, or bring their own plates and valid insurance.
The Ontario vehicle permit has two parts: the vehicle portion (top) and the plate portion (bottom). On the back of the vehicle portion, fill in and sign the seller section. Include your name, signature, the date, the sale price, and the buyer's name.
The buyer needs this signed document to register the vehicle in their name at ServiceOntario.
Write the actual sale price on the permit. ServiceOntario taxes the higher of the declared sale price or the Canadian Red Book wholesale value. Writing a lower price to reduce the buyer's tax is illegal and can result in penalties for both parties.
A Bill of Sale is not legally required in Ontario, but it is strongly recommended. It protects both parties by documenting the terms of the sale. Include:
Buyer and seller full legal names and addresses, vehicle year/make/model, VIN, odometer reading, sale price, date of sale, "sold as-is" or warranty terms, and both signatures.
Both parties should keep a signed copy. A printable template is provided below on this page.
Always include "vehicle sold as-is, no warranties expressed or implied" unless you are specifically offering a warranty. Accept payment by bank draft or certified cheque for amounts over $1,000. Personal cheques can bounce, and carrying large amounts of cash is a safety risk.
Contact your insurance company to cancel coverage on the vehicle after the sale is complete and the buyer has taken possession. Cancelling before the sale leaves you liable if anything happens while the vehicle is still in your possession.
If you are replacing the vehicle, you can transfer the policy to your new vehicle instead of cancelling.
Ask your insurer about a refund for any pre-paid premium. Most policies are paid in advance, so you may receive a pro-rated refund for the unused portion.
Notify ServiceOntario of the sale within 6 days. This transfers legal liability away from you. If you do not report the sale and the buyer does not register the vehicle, you remain the registered owner and are liable for any tickets, tolls, or incidents.
You can report the sale online, by phone, or in person at a ServiceOntario location.
Do not skip this step. Sellers who forget to report the sale have received 407 ETR toll bills, red light camera tickets, and parking fines months after the vehicle was sold. Reporting the sale is your proof that you are no longer responsible.
A private sale saves you money on tax (8% RST vs. 13% HST) but you give up the consumer protections that come with buying from a licensed dealer. There is no OMVIC cooling-off period, no mandatory disclosure, and no recourse if the seller misrepresented the vehicle. Do your due diligence on every step above. If you are also considering buying from a dealer, read the used vehicle buying guide for a full comparison of dealer used, CPO, and private sale.
Bill of Sale Template
Print this template and fill it out at the time of sale. Both buyer and seller should keep a signed copy.
Bill of Sale, Private Vehicle Transaction
Province of Ontario, Canada
Vehicle Information
Seller Information
Buyer Information
Sale Details
Condition
The above-described vehicle is sold "as-is" with no warranties or representations, expressed or implied, regarding its condition, fitness, or merchantability. The buyer acknowledges having had the opportunity to inspect the vehicle and accepts it in its present condition.
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Straight Answers
Yes. A valid Safety Standards Certificate is required to register a privately purchased vehicle at ServiceOntario. The certificate is valid for 36 days from the date of inspection. Either the seller or the buyer can arrange the inspection, but without it, the vehicle cannot be driven on public roads or registered.
You pay 8% Retail Sales Tax (RST), not the full 13% HST. The RST is calculated on the higher of your purchase price or the Canadian Red Book wholesale value from the UVIP. You pay at the ServiceOntario counter when you register the vehicle. This is one of the key financial advantages of buying privately versus from a dealer.
A Used Vehicle Information Package is a document from the Ontario Ministry of Transportation showing registration history, lien information, branding, and fair market value. It is legally required for all private vehicle sales in Ontario. The seller must provide it to the buyer. It costs $20 and can be ordered online from ServiceOntario.
Walk away. The seller is legally required to provide a UVIP for a private sale in Ontario. If they refuse, they may be hiding a lien, branding issue, or other problem. You can order a UVIP yourself if you have the VIN, but a seller who refuses to provide one is a red flag.
No. You need valid plates and insurance to drive on Ontario roads. You can transfer plates from your current vehicle, obtain temporary plates from ServiceOntario, or arrange to have the vehicle towed or transported. Driving without plates or insurance results in fines, vehicle impoundment, and potential licence suspension.
Common questions Ontario buyers ask
Is it safe to test drive a car from a private seller?
Yes, with two conditions: verify the seller's insurance covers test drives (most private policies do), and meet at a public location during daylight. Bring a friend. If the seller refuses a test drive, walk away.
How do I pay for a private car sale safely in Ontario?
Use a bank draft from your bank, made out to the seller. Bank drafts are guaranteed funds and clear immediately. Avoid e-Transfer for amounts over $10,000 (banks impose limits). Cash is legal but unsafe for both parties at typical transaction sizes.
What if the seller refuses to give me a UVIP?
Walk away. The Used Vehicle Information Package is legally required for every private sale in Ontario. A seller refusing to provide one is either evading liens, hiding a salvage history, or both. Order your own UVIP using just the VIN, but the missing seller-provided UVIP is a red flag.
Can I cancel a private car sale after signing the bill of sale?
Generally no. Private sales in Ontario are final once the bill of sale is signed and ownership transfers. There is no statutory cooling-off period. The exception is misrepresentation: if the seller materially lied about accident history or odometer, you may have a civil claim.
Do I need a lawyer for a private vehicle sale in Ontario?
Not for a typical sale under $30,000. The bill of sale is a simple document that ServiceOntario provides. For a high-value vehicle (over $50,000), a vehicle with a complex lien situation, or a sale across provincial lines, a one-hour consultation with a transactional lawyer is worth the $200 to $400 cost.
Buying Privately? Get a Second Set of Eyes.
A Holdback consultation reviews the vehicle history, pricing, and paperwork so you do not miss anything. Private sales have no dealer protections, preparation is everything.
Questions? Email hello@holdback.ca
You only buy a car every four to six years. They sell one every day.