Selling a car isn’t as simple as finding someone to give you money and handing over the keys. In every province and territory across Canada, each vehicle has a registered owner. It’s that owner’s responsibility to ensure the proper paperwork is filled out when a car is sold and ownership is being transferred to someone else. If the process isn’t completed correctly, it could result in some serious legal implications down the road.
Here’s a look at the paperwork you’ll need to complete when you’re selling a car privately anywhere in Canada.
What Paperwork do I Need to Sell My Car Privately?
- Vehicle ownership/registration form
- Safety inspection report
- Transfer of Ownership form
- A Used Vehicle Information Package
- A Bill of Sale
- Your licence plate(s)
- An As-Is declaration
- Maintenance records (optional)
- Vehicle history report (optional)
- Warranty documentation (optional)
- Steps to Take When Selling Your Vehicle in Canada
- Conclusion
- Frequently Asked Questions (FAQs)
Vehicle ownership/registration form
This is the document that proves you’re the registered owner of the vehicle and are therefore authorized to sell it. This document is sometimes also referred to as the car title. You’ll need to be able to produce the original registration from to complete the private sale (copies are not accepted). It doesn’t hurt to double-check the VIN on the document matches the one on your car to avoid possible complications later on.
Safety inspection report
In some Canadian provinces—including Manitoba, Ontario, the Maritimes, and Newfoundland and Labrador—a safety inspection will either be required to transfer ownership of a vehicle, or where inspections are required at regular intervals, a car’s safety certificate will need to be valid. When a vehicle is being purchased and brought in from another province, a safety inspection is nearly always required. Typically, the buyer will be responsible for this expense, but you could have one done as well to make sure you don’t run into any complications later in the sales process. Don’t be surprised if potential buyers still want to arrange their own inspections with trusted mechanics, though, and don’t take it personally. It’s smart for a buyer to do their own due diligence on a purchase as important as a new vehicle.
Transfer of Ownership form
The requirements around this and an application for transfer form change from one province to the next, and some provinces don’t require this specific form at all. In general, if it is required, this form will either be part of the vehicle ownership document or downloadable from a Ministry of Transportation website. In B.C., this form is known as the Transfer/Tax Form (APV9T).
A Used Vehicle Information Package
This one is unique to Ontario: if you’re selling a used vehicle in Canada’s most populous province, you’ll need to request and pay for a Used Vehicle Information Package (UVIP) in person or online with ServiceOntario. This contains the vehicle’s ownership history, information about any liens, the average wholesale price for a vehicle of its age and type, information on the sales tax the buyer will be required to pay, the vehicle’s registered condition, and a blank Bill of Sale.
A Bill of Sale
Once you’ve selected a buyer and agreed on a price, nearly all provinces require a Bill of Sale. This document will need to contain names, addresses, and signatures for you and the buyer, the date of the sale, the agreed-on price, and the make, model, model year, Vehicle Identification Number (VIN), and odometer reading for the vehicle. You can handwrite this if you wish, and it will be valid as long as you don’t miss any of the necessary details, but many provinces have templates available for download to make it easier. If you’re in Ontario, a blank Bill of Sale will be included in your UVIP.
Your licence plate(s)
In every province and territory except Newfoundland and Labrador, licence plates are associated with the vehicle’s owner, not the vehicle itself. If you live in Newfoundland and Labrador, the plates stay with the car when you sell it or complete a trade-in; if you live anywhere else in Canada, any licence plates will need to be removed and either registered to your next vehicle or returned to your licencing authority.
An As-Is declaration
In situations where a car is not considered road-safe and is sold for parts—a vehicle that’s been totaled in an accident or a flood or that’s otherwise not in an operable condition, for example—you’ll want to be upfront and have the buyer sign a document agreeing that the car is being purchased as-is. This will act as proof that the buyer knew that the car was not driveable when agreeing to the car sale, which can save you from liability down the road. Be sure to give a signed copy to the buyer and get a second one for your own records.
Maintenance records (optional)
You’re not required to present service records when selling a car, but a smart buyer will ask for them. Whether you’ve had this work done at a dealership, by a private garage, or in your own driveway, pull together whatever you can and have it ready to present as a package on request.
Vehicle history report (optional)
Again, this is not a requirement, but some buyers will ask for one or will eventually order one themselves if they’re interested in your vehicle. It’s therefore often a good idea to order one before you list the vehicle for sale from a major issuer such as CARFAX to ensure you won’t be blindsided by surprises late in the game. You’ll also be able to show it to potential buyers to prove the vehicle isn’t listed as salvage, there haven’t been any accidents you’re not disclosing, and that there are no liens owing.
Warranty documentation (optional)
If your vehicle is still under any of the original manufacturer warranties, this could be an incentive to a potential buyer. It’s a good idea to pull any relevant information together before listing the car for sale and have the paperwork ready to present to the interested buyer.
Steps to Take When Selling Your Vehicle in Canada
You’ve found an interested buyer, they’ve completed a test drive, and they’re ready to go through with the vehicle sale. Here are the next steps for both the buyer and you as a private seller:
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Allow the buyer to pick up the used car and take it for an inspection and to receive a Safety Standards Certificate, if required or upon request.
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If the vehicle is deemed suitable, agree on an asking price. You can ensure you’re offering the best price by doing some research on what vehicles of your make, model, and model year with similar odometer readings are selling for in your market.
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Complete the Bill of Sale and/or Transfer of Ownership document(s).
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Complete an As-Is declaration if required and have it signed by both parties.
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The seller removes their licence plate(s) from the vehicle. (This applies in every province or territory but Newfoundland and Labrador, where the plate(s) are transferred with the vehicle.)
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Notify your province’s motor vehicle registration authority that the vehicle is changing ownership. This may need to be done by the seller, buyer, or both, depending on the jurisdiction.
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The new car owner must secure insurance for the vehicle. In some provinces, particularly those with public automobile insurance, this will be processed automatically upon registration. Where this is not done automatically, proof of insurance is often required before the vehicle can be registered.
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The new owner will need to register the vehicle in their province or territory and pay a fee. In most provinces, this is the stage where the new licence plate(s) will be issued if they’re required. At this time, they will also be expected to pay provincial sales taxes on the purchase price where they apply. (In Alberta, there is no provincial sales tax and this will therefore not apply.)
This is a general guide; there may be slightly different documents or procedures required in some provinces. Check with your Ministry of Transportation or vehicle registration authority for more information.
Conclusion
While requirements vary across Canada, most provinces require a seller to complete a Bill of Sale and a Transfer of Ownership form at a minimum to complete a private vehicle sale. Be sure to research the requirements specific to your province to help make the sale and ownership transfer process as smooth and seamless as possible.
Frequently Asked Questions (FAQs):
What are the documents required when selling a vehicle in Canada?
At a minimum, you’ll need to produce your vehicle registration document and complete a Bill of Sale and Transfer of Ownership form. Some provinces and territories require additional documentation.
Is insurance still necessary after transferring ownership?
If you’re selling a vehicle and not replacing it, you will need to contact your auto insurance provider to cancel your policy. If you’ll be purchasing a new vehicle, you may be able to transfer your policy instead of canceling it. Contact your insurer for more information.
Are there any local regulations that I need to be aware of when selling my car privately in Canada?
Each province in Canada has its own set of specific requirements for selling a car privately. As a general rule, you’ll need to complete a Bill of Sale, notify your registration authority of the ownership change, and file documents to have the ownership transferred to the buyer. Consult your provincial motor vehicle registration authority for more information.
