To buy a used car in Ontario, set your budget, research the vehicle, get the Used Vehicle Information Package (UVIP) from a private seller, have the car inspected, sign a bill of sale, then register it at ServiceOntario within 6 days with proof of insurance, a safety standards certificate if required, and payment of 13% retail sales tax.
Last updated: October 28, 2026
Ontario has clear rules for used vehicle sales that protect buyers, especially in private sales. Knowing them before you start saves time and helps you avoid costly mistakes. This step-by-step guide covers both dealer and private purchases. Rules can change, so confirm current requirements with ServiceOntario before you buy.
Step 1: Set your budget
Include the price, 13% tax, registration fees, insurance and early maintenance. Our guide on how much car you can afford and the used car total cost calculator help you set a realistic number. If you need financing, get pre-approved first; see car loan options in Canada.
Step 2: Choose between a dealer and a private seller
| Registered dealer | Private seller | |
|---|---|---|
| Price | Usually higher | Usually lower |
| Tax | 13% HST included in the sale | 13% RST paid by the buyer at ServiceOntario |
| Consumer protection | Dealers are regulated by OMVIC and must disclose certain information and advertise all-in prices | Limited; you rely on the UVIP, inspection and your own checks |
| Financing and warranty | Often available | Arrange your own financing |
| Paperwork | Handled mostly by the dealer | You complete the transfer at ServiceOntario |
Registered Ontario dealers must follow all-in price advertising rules: the advertised price must include fees and charges, with only HST and licensing allowed to be added. If a dealer adds surprise fees, ask questions.
Step 3: Research the vehicle
- Get the vehicle identification number (VIN) from the seller.
- Check open recalls with Transport Canada’s motor vehicle safety recalls database.
- Obtain a vehicle history report for accidents and odometer records.
- Compare prices for the same model, year and kilometres.
Step 4: Get the Used Vehicle Information Package
In a private sale, Ontario’s Highway Traffic Act requires the seller to give the buyer a UVIP. The seller buys it from ServiceOntario. The package shows the vehicle’s registration history in Ontario and whether there is a lien, meaning money still owed on the vehicle. If there is a lien, it must be cleared before the sale or you could be responsible for the debt. The UVIP also contains a bill of sale section.
Step 5: Inspect and test drive
Use our used car inspection checklist: look for rust, leaks, uneven tire wear and warning lights, and test the car on city streets and the highway. Then have an independent mechanic do a pre-purchase inspection.
The safety standards certificate
To register a used vehicle in your name, you generally need a safety standards certificate (SSC) unless the transfer is between spouses. It is issued by a DriveON vehicle inspection centre licensed by the Ministry of Transportation and is valid for 36 days after the inspection. In a private sale, buyer and seller agree on who pays for it. A safety certificate is not a guarantee of the car’s overall condition; it only confirms minimum safety standards on the day of inspection.
Step 6: Negotiate and complete the bill of sale
Negotiate using the inspection results and comparable listings. Record the price, date, VIN, both parties’ names and signatures in the bill of sale section of the UVIP. Pay in a traceable way, such as a bank draft, and avoid carrying large amounts of cash.
Step 7: Insure the vehicle
You need valid Ontario auto insurance before you can register and drive the car. Get quotes before you buy, because insurance can vary a lot by model. See our car insurance section.
Step 8: Register at ServiceOntario
You must register the vehicle in your name within 6 days of purchase at a ServiceOntario centre. Bring:
- The vehicle permit portion signed by the seller
- The completed bill of sale (from the UVIP)
- A safety standards certificate, if required
- Proof of insurance and your driver’s licence
- Payment for registration fees and retail sales tax
On a private sale, the 13% retail sales tax is calculated on the higher of the purchase price or the vehicle’s wholesale value, based on a reference guide. Vehicles 20 years or older may need an appraisal. Gifts between certain close family members can be exempt.
Common mistakes to avoid
- Skipping the UVIP: without it, you may not know about a lien, and you could inherit the debt.
- Confusing the safety certificate with an inspection: a safety standards certificate checks minimum safety items. It does not assess the engine, transmission or rust in detail. Pay for a separate pre-purchase inspection.
- Underdeclaring the price: tax is based on the higher of the price paid or the wholesale value, so writing a lower price on the bill of sale does not reduce tax and can create legal problems.
- Driving without plates or insurance: you cannot legally drive the car until it is registered in your name and insured.
- Paying a deposit before seeing the car: online listing scams are common. See the vehicle and the documents first.
Buying from another province
If you buy a vehicle registered outside Ontario, you will generally need a safety standards certificate to register it in Ontario, and tax rules apply when you register. Check with ServiceOntario before you commit, and make sure the out-of-province vehicle has no liens in its home province.
Frequently asked questions
Who pays the tax on a private used car sale in Ontario?
The buyer pays 13% retail sales tax when registering the vehicle at ServiceOntario, based on the higher of the purchase price or the wholesale value.
How long do I have to register a used car in Ontario?
You must register the vehicle in your name within 6 days of buying it.
Do I need a safety certificate to buy a used car in Ontario?
You generally need a safety standards certificate to register a used vehicle in your name, unless the transfer is to a spouse. It is valid for 36 days after the inspection.
This guide is general information, not financial, legal or mechanical advice. Prices, rates and rules change; confirm details with the seller, your lender, your insurer or your provincial authority before you buy.
