Buying a car in Ontario, step by step.
What to check before you buy, the seller's legal obligations, the tax rule that catches first-timers, and the six-day window after you've paid.
What to check before buying
Get the UVIP, since it's legally required from a private seller and carries lien information. Check for liens, since debt follows the car, not the seller. Confirm the seller is the registered owner and that the VIN on the vehicle matches the VIN on the permit (check this physically). Have your own mechanic inspect it and take it for a test drive. And check its recall history via Transport Canada. Note: since April 1, 2019, light passenger vehicles no longer require an emissions test in Ontario; only heavy diesel commercial vehicles do.
Dealer vs. private
An OMVIC-registered dealer is covered by the Motor Vehicle Dealers Act. OMVIC keeps a public, searchable register, and its Compensation Fund protects deposits and payments up to $45,000 if a dealer fails to deliver (you have 2 years to claim). Advertised dealer prices must be all-inclusive, with only tax added, and ads must disclose any rental, taxi, limo, police, or emergency-vehicle history. None of this protection applies to a private or out-of-province sale.
Two surprises
There is no cooling-off period on motor vehicle contracts in Ontario. Once you sign, you're bound, so read everything and negotiate before you sign. But you may have a 90-day cancellation right if a dealer got key facts wrong or left them out: the odometer reading (or a "distance unknown" statement), the make/model/year, salvage/rebuilt/irreparable branding, or past-use accuracy like taxi, limo, rental, or police/emergency history. Free CAMVAP arbitration is also available for manufacturing-defect disputes, and dealers must disclose your CAMVAP eligibility.
Spotting a "curbsider"
A curbsider is an unregistered dealer posing as a private seller, often selling stolen, damaged, or odometer-tampered cars. Red flags: they refuse to give you a UVIP, aren't the name on the registration permit, won't allow a mechanic inspection, or hint at having multiple vehicles for sale. Report a suspected curbsider at 1-888-NO-CURBS (662-8727). Never register a vehicle in your own name for someone else, since you can face criminal charges if it's later used in a crime.
Can you drive it home right away?
Three things need to be true first: insurance is arranged, plates are registered to you (plates stay with the seller, since they don't transfer with the car), and your paperwork is in hand (the permit's transfer section completed, the UVIP, and a signed bill of sale). From there, you have 6 days from the purchase date to register it.
Registering it, and the tax
Bring proof of insurance, your licence, the UVIP, the bill of sale, a Safety Standards Certificate if required, the owner's permit with the Application for Transfer completed, and the odometer reading. Tax, usually 13% RST, is paid to ServiceOntario at registration, not to the seller, calculated on whichever is higher: the purchase price, or the vehicle's wholesale value (Canadian Red Book). If you paid less than book value, you can get it appraised before transfer and pay tax on the higher of the two; vehicles 20+ years old require an appraisal. No tax applies on a gift from a close family member (with a Sworn Statement for a Family Gift of a Used Motor Vehicle) or for a qualifying diplomat or Status Indian. The bill of sale must be original, include the VIN, make/year/power source, body type/colour/model, purchase price plus tax, both parties' name and address, and the seller's signature and date.
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