Whether you’re buying or selling a used car, you have certain obligations to ensure you make a fair and economical transaction. Consult the following information on your rights and responsibilities.
Selling a Used Car
Under law, private sellers of most motor vehicles must provide buyers with a Used Vehicle Information Package (UVIP). This package contains:
- the vehicle's registration history in Ontario;
- vehicle lien information (i.e. whether there were any outstanding debts on the vehicle in Ontario up until two business days before the seller bought the UVIP);
- average wholesale value on which the minimum tax owed is based and other information dealing with vehicle safety standards;
- retail sales tax and forms for an affidavit;
- bill of sale.
The UVIP costs $20 and is available from all Ministry of Transportation Driver and Vehicle Licence Issuing Offices.
Visit the Ministry of Transportation website for more information on buying, selling or transferring used vehicles.
Buying a Used Car
If you plan to buy a used car, it’s wise to take it to a licensed, independent mechanic to inspect for any potential problems before you make your purchase.
Personal Property Security Act search
Before buying a used car or other used goods of significant value, consumers should do a Personal Property Security Act search to protect themselves financially. A search may find that the seller or a previous owner has obtained a loan and that the lender may have rights in a used car that a consumer intends to buy. If so, the search results will allow the consumer to contact the seller to confirm whether or not the loan is still in effect and to obtain further details. If the loan has been repaid, the buyer should insist that the seller require the lender to promptly register a discharge. Do not enter into a sale until you have proof that this is the case.
If a lender has rights in the used car and a search is not done, the car could later be seized if the borrower fails to repay the loan. Consumers do not need to search when buying a used car from a registered motor vehicle dealer in Ontario unless the car is worth more than $15,000.
Where are searches done?
Search (and registration) services are available via the Internet. Payment may be made by major credit card or through a deposit account set up by the Companies and Personal Property Security Branch.
If you have an approved credit card or a deposit account with the Branch, you may also conduct a search over the telephone by calling (416) 325-8847 or toll-free in Ontario at 1-800-267-8847. TTY users dial 1-800-461-8866, or (416) 326-8866 in Toronto.
Obtain a list of private sector third-party suppliers who can register/search for you.
Vehicle Identification Number (VIN) search
There are two searches you should do when buying a car: against the VIN and against the name of the business or individual selling the car. As well, you may wish to search the names of any previous owners.
How do you do a VIN search?
The VIN is the identification number the manufacturer affixes to the vehicle, usually on the dashboard. The VIN should be obtained directly from the vehicle – the VIN on the vehicle permit may be incorrect.
If there is any difference between the two numbers, a search should be done against both. A searcher may select an identical VIN search or a similar VIN search. The identical VIN search will disclose only those registrations that set out the exact VIN searched. The similar VIN search will disclose registrations with a VIN that the Personal Property Security Registration (PPSR) system determines is similar, in addition to registrations with the exact VIN.
