British Columbia, along with Manitoba, Saskatchewan, and Quebec, is one of a handful of Canadian provinces with public automotive insurance. As a result, the Insurance Corporation of British Columbia (ICBC) is the government entity responsible for registering, licencing, and insuring every vehicle in the province.
In some ways, this makes selling a car in B.C. easier than it is elsewhere in Canada. But the process is more complicated for a used vehicle buyer than it is in most parts of the country, so it’s helpful to understand those challenges before you get the selling process underway. Here’s a look at how to complete a private sale of your vehicle in British Columbia.
How to Sell a Car in British Columbia
- Understand the Local Laws in British Columbia
- Prepare Your Car For Sale
- Gather Paperwork
- Sell Your Car 100% Online
- Selling Privately
- Finalize the Deal and Transfer Ownership
- Frequently Asked Questions
Understand the Local Laws in British Columbia
While most laws around selling cars in B.C. are consistent with the rest of Canada, unlike B.C.’s neighbours in Alberta, sales tax is charged on used vehicle purchases and the tax regime is by far the most complicated in the country.
If you buy a car from a private seller—or if you’re given a car as a gift, which only requires provincial taxes to be paid in certain circumstances—then you’ll pay a total provincial tax rate of 12 per cent on what the ICBC considers the vehicle to be worth. However, for vehicles that cost more than $125,000, a luxury tax applies at a rate of 15 percent on cars valued between $125,000 to $149,999.99, and 20 percent for those priced at more than $150,000. If you’re selling a vehicle used in this price range and your buyer is pushing you to fall below a specific number, this is likely the reason.
Otherwise, B.C.’s laws around selling used vehicles are straightforward: you must be the legally registered owner, and you must correctly complete the necessary paperwork to transfer the ownership once the sale is complete.
Prepare Your Car For Sale
In B.C., you’re not legally required to get a safety certificate to transfer ownership of a vehicle, as long as it’s already registered to a resident of the province and will be transferred to another B.C. resident.
However, if you have any concerns about the condition of the vehicle, or if there’s outstanding repair, warranty, or recall work that might lead a potential buyer to reconsider, then it’s a good idea to have the car inspected and repair work completed before you list the car for sale. This will help protect you from claims of misrepresentation, and you’ll also have extra documentation to give to a potential buyer, which will bolster their confidence. For the same reason, you may wish to purchase a vehicle history report from an organization such as CARFAX to prove there are no outstanding liens on the vehicle.
Gather Paperwork
To complete the sale of your used vehicle, you’ll need your current insurance and original vehicle registration. These are two parts of the same document, which is usually stored in the vehicle’s glove box. If the vehicle you’re trying to sell is not currently insured, you’ll need to get a temporary permit from an Autoplan broker so that potential buyers can take it for test drives.
You’ll also need a copy of the Transfer/Tax Form (APV9T) when you get close to completing the sale. Ask your Autoplan broker for a copy, or download it from the ICBC website so you can complete it later in a pDF editor such as Adobe Acrobat. This acts as the bill of sale in B.C. used vehicle transactions. Note that all four pages of the document must be completed for the form to be valid.
Unlike in Ontario, B.C. residents are not required to purchase a used vehicle information package (UVIP) or similar product before beginning a private vehicle sale in the province.
Sell Your Car 100% Online
There are many ways to sell a used vehicle today, from listing on an online classifieds site like Facebook Marketplace, AutoTrader.ca, or Kijiji, offering it to a dealership for sale or for trade-in value, or by selling it entirely online. CarGurus offers a fully online sales process through our Sell My Car service Sell My Car service: enter a few details to get an instant valuation for your car, then book an appointment to have one of our trusted experts do a walkaround, take some photographs, and gather a few final details. A listing will be created for you and seen by our network of interested buyers, and you’ll receive the best offer within a few days. This service is available in the Vancouver area, and it’s 100% online, 100% free of charge, and 100% free of hassle, too.
Selling Privately
If you choose to list your vehicle for private sale, you’ll need to determine the market value of your vehicle. You can do this by consulting a used vehicle valuation reference guide or looking up other listings in your area for vehicles with similar make, model, model year, and odometer readings.
Once your listing is published with a set of decent photos, you’ll need to field inquiries from interested potential buyers, arrange for them to inspect and test drive the car, and be prepared to negotiate on a final price that’s fair to both parties. The ICBC recommends accepting payment in the form of cash or bank draft only, not as a personal cheque.
Finalize the Deal and Transfer Ownership
Once you have a deal and you’re ready to complete the sale, there are some essential steps to follow. When selling your car 100% online or to a dealer, you'll be guided through this process. But if selling privately this is what you need to know.
First, remove the insurance and registration portions of the vehicle registration. Sign the vehicle registration portion of the document and hand it over to the new owner. Be sure to remove your licence plates as well.
Once the buyer has paid you, complete the Transfer/Tax Form in full and take it along with the rest of your registration to an Autoplan broker. The ICBC recommends doing this at the same time as the buyer to speed up the ownership transfer process. If this is not possible, be sure to keep the seller’s copy with your signature and the buyer’s for your records.
Cancel your insurance with ICBC, or transfer it if you’ll be purchasing a new vehicle. A buyer can use old plates on a new vehicle for up to 10 days, provided the new car was already registered in B.C., both the old and new vehicle are passenger vehicles, and the plates remain valid. You’ll need to carry specific documentation with you during this period. See the ICBC website for details.
Frequently Asked Questions (FAQs):
What documents do I need to transfer ownership of a car in British Columbia?
You’ll need the insurance and registration portions of your vehicle registration form as well as four completed copies of the Transfer/Tax Form.
Is it mandatory to get a safety inspection when selling a car in British Columbia?
It is not mandatory to get a safety inspection when selling a car in British Columbia. However, it is recommended, both to reduce your potential liability around misrepresenting the condition of the vehicle and to provide additional comfort to potential buyers.
What fees and taxes are associated with selling a car in British Columbia
Apart from optional inspection, cleaning and detailing, or listing fees, there are no fees for selling a vehicle in British Columbia. The buyer is responsible for registration and provincial sales tax costs.