Obtain and read the Used Vehicle Information Package
Show the folder and its contents to all interested buyers
Once a buyer has been found, sign the bill of sale portion of the document and record the date and purchase price
Give the entire package to the buyer
Complete and sign the Application for Transfer located on the "vehicle portion" of the registration permit and give it to the buyer. Keep the "plate portion for your own use. You'll need this portion if you put your licence plates on another vehicle.
Remove and keep your licence plates as well as any other personal items
Failure to show the Used Vehicle Information Package to all interested buyers, and failure to give the package to the buyer are offences under the Highway Traffic Act.
The Buyer's Responsibilities
Obtain a Safety Standards Certificate if the vehicle doesn't already have one.
Brind valid insurance information, the Safety Standards Certificate (if you intend to drive the vehicle immediately), the Application for Transfer (vehicle portion of permit), your Ontario Driver's Licence or other identification, plate portion of permit (if using existing licence plates), the seller's Used Vehicle Information Package, sufficient payment for retail sales tax, vehicle registration fees and, if required, new licence plates to a Driver and Vehicle Licence Issuing Office.
Notes:
Registration must be transferred within six days of buying a used vehicle.
The transfer package is not a warranty of the vehicle
Transfer of registration will be refused without the Used Vehicle Information Package.
Used Vehicle Information Package
When selling your used vehicle in Ontario, you must purchase the Used Vehicle Information Package from the Ministry of Transportation. The cost of the Package is $ 20.00 Cdn.
The Package includes a pamphlet which describes the buyer's & seller's responsibilities and a printout providing information specific to your vehicle. The print our includes the following:
Vehicle Details
This section describes the vehicle in detail. The dollar amounts shown represent a range of values, as guidelines for calculating retail sales tax. These values are based on the Canadian Red Book, which is an industry standard. The amounts represent average prices paid for vehicles of the same year, make and model, and do not take into account optional equipment, mileage or vehicle condition. Values may change from the date this package is issued to the date of transfer. The buyer of the vehicle must pay retail sales tax on the purchase price or the Red Book wholesale value, which ever is more.
If the buyer paid less than the Red Book value and an appraisal supports a lower price because of the condition of the vehicle, tax is paid on the declared price or appraised value, whichever is higher. Any reduction in the tax is available only when a completed appraisals given to a licence issuer prior to changing ownership. If the transfer has been completed and tax has been paid on the average wholesale value, an appraisal must be sent in with an application for a refund to the Ministry of Finance.
Appraisal forms are available from motor vehicle dealers who conduct appraisals and independent appraisers authorized by the Ministry of Finance to conduct appraisals.
Red Book Values may not apply to some vehicles. In these cases, retail sales tax will be based on the purchase price only.
Tax is not paid if a vehicle is a gift and is being transferred between the following family members:
father
mother
step-father
step-mother
spouse
grandfather
grandmother
son
daughter
son-in-law
daughter-in-law
mother-in-law
father-in-law
A statement sworn before a Commissioner of Oaths will be required for certain transfers, such as gifts or bequests between defined family members, settlers effects and transfers for insurance or commercial licensing. Diplomats who produce their identification card issued by the federal government will be able to complete a transfer without paying tax. Status Indians living on reserves are exempt from tax when a motor vehicle is registered to a reserve address and they show their federal identification cards.
Current Registrant
The vehicle's current registrant is printed in this sections well s the year, month and day of registration.
Vehicle History
Only the names of people who have previously registered the vehicle in Ontario are listed here. Ministry of Transportation policy does not permit the release of personal address information.
Lien Information
Information on outstanding liens registered against the vehicle in Ontario is found in this section. This information is currently only to the date specified in the certificate.
A lien is registered against the Vehicle Identification Number (VIN) usually for one of two reasons - (1) the vehicle was used a s collateral for a loan or (2) it was repaired and/or stored and the bill wasn't paid. If liens are registered against the VIN, it may mean that the secured party (lien holder) will have the right to take the vehicle if the amount of the lien is not paid.
In order to find out if a lien is still outstanding, it is necessary to contact the secured party. If it is still outstanding, arrangements should be made to have the amount owing paid off and the lien discharged before the seller is paid. Any arrangement made should be agreeable to the seller, the buyer and the secured party.
Bill of Sale
A bill of sale is printed on the bottom of the Used Vehicle Information Package. It must be signed by both the seller of the vehicle and the buyer. The date and purchase price of the vehicle must also be shown.
