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Buying a used car in Ontario - what to expect at the MTO

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Buying a used car in Ontario - what to expect at the MTO

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Old Sep 22nd 2006, 7:51 pm
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Default Buying a used car in Ontario - what to expect at the MTO

Hi Everyone,

I thought I'd chime in here to possibly shed some light on the MTO's (Ministry of Transportation Ontario) procedures for any of you who are buying used vehicles and doing the licensing.

I used to work at the MTO, but this info is a couple of years old and only meant to be a guide.

When licensing a used vehicle you need the following documents:

- Your Ontario Driver's License (if you haven't gotten it yet you should do that first).

- The Ownership for the vehicle signed off by the registered owner on the back on the document. (This is a green piece of paper.)

- Valid Ontario Insurance in your name for that vehicle...Ontario, unlike BC, does not have a provincially run insurance program so shop around for good rates! I like DirectProtect.... they seem to be very reasonable and they're a subsidiary of the Co-operators insurance which is one of the most reputable companies around.

- A Bill of Sale from the registered owner of the vehicle. (Never accept one from a third party...ie: the guy bought it and never registered it into his name before selling to you - if you run into this situation make sure you get HIS Bill of Sale from the registered owner PLUS a bill of sale from him to you... so long as you have connecting bills of sale you should be okay.) Also make sure your Bill of Sale's date is no older than 6 days at the time that you go to register the vehicle, as legally, you must register it into your name not more than 6 days after the vehicle's purchase.

- A UVIP (Used Vehicle Information Package) This is a $20 printout of your vehicle's history. It is the seller's responsibility to provide this to you, as it will state important information on the car such as how many owners it's had and whether or not there are any liens on the car. If they have neglected to pick one up from the MTO, you can do it instead, but I would get it printed up BEFORE paying the money for the car because if there are still liens on the vehicle YOU could lose the car if THEY make a defaulted payment on whatever loan they used the car as collateral against. NOTE: You will need the vehicle's VIN or plate number to identify the vehicle for the UVIP. This package will also tell you the "Wholesale Price" on the vehicle. Note that the tax price you will pay will be based on the higher of your bill of sale price or the Wholesale Price as indicated on this package. If this vehicle is in very poor condition and you feel the Wholesale Price is way too high, it may be worthwhile to pay a small sum to a dealership to write you up an appraisal document. This appraisal certificate's number can be entered in the MTO's system to override the Wholesale Price in this case, but you will then be taxed on the higher of the Appraisal Price or the Bill of Sale's price that you paid. Remember only to bother with an appraisal if the Wholesale Price is HIGHER than your Bill of Sale price. If it's lower, then disregard it altogether, as you'll be taxed on your Bill of Sale even if an appraisal comes in lower than your Bill of Sale price.)

- An Ontario Safety Standards Certificate (S.S.C)... this may or may not be provided by the seller depending on whether or not he's selling the vehicle "As Is" (ie: no safety) or certified. Make sure to check the date on the certification as they are only valid for a certain period of time. If it's expired by only a few days some mechanics will write up another one for you as a kind gesture. You will see the name of the shop that certified the vehicle on the safety certificate. The MTO will not accept an expired certificate, even if it's only past due by 1 day.

- If you are located in Southern Ontario (South of Muskoka) you will also need to obtain a Vehicle Emissions test from a certified testing facility. They are everywhere, just look for the signs saying that they provide emissions testing. If you are in Northern Ontario you are currently exempt from this testing as the testing facilities are not yet in place in those areas.

- The Registration Fee will consist of the tax amount (as described above) which is 8% of the purchase price (or wholesale price) plus $20 for the plates. In addition to the plate cost you will also need to pay for your plate validation sticker. This cost is $74/year in Southern Ontario and $37/year in Northern Ontario. The cost is prorated to your birthday, so this number will fluctuate (generally lower) depending on how many months are left until your next renewal (on your birthday).

This pretty much covers it for licensing a used vehicle. If you are buying from a dealer they will likely take care of the licensing for you. Also note that if you're buying a vehicle from a dealership in Ontario you will need to pay both the GST (Goods and Services Tax - 6%) and RST (Retail Sales Tax - 8%) as the dealerships must also collect the GST on sales. (NOTE: RST is the same as PST, but for some reason they call it by a different name for licensing purposes).

Any additional information on obtaining a driver's license in Ontario and/or other vehicle licensing questions can mostly be answered here:
Ministry of Transportation Ontario

Hope this helps! I'm a Canadian on this forum looking for info to help me move abroad again, so I know how confusing it can be...

Last edited by Jade3; Sep 22nd 2006 at 8:29 pm.
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