In some ways, it's easier to sell your car privately in Saskatchewan than it is in the rest of Canada. That's because the person who buys your vehicle is the one responsible for investigating its status and eligibility for registration. However, you still have legal obligations as a seller, especially when it comes to representing your used vehicle and its condition correctly. Here’s what you need to know about how to sell a car privately in Saskatchewan.
How to Sell a Car Privately in Saskatchewan
- What to Know Before you Sell
- Paperwork
- Plate Transfer
- Taxes
- Ways to Sell a Used Vehicle in Saskatchewan
What to Know Before you Sell
As a resident of Saskatchewan, you’re not required to have any paperwork prepared in advance when you’re selling a vehicle privately. However, a smart and prepared buyer will ask you for the Vehicle Identification Number (VIN) so they can look the car up using the SGI’s VIN search function and check the vehicle’s status, whether it can be legally registered in Saskatchewan, the damage claims history, and if any provincial sales tax (PST) is owing on it. This service is free to use, so it’s a good idea to run your vehicle’s VIN through the search function yourself to check for surprises before you list the car for private sale.
For $10, you can also search the Saskatchewan Personal Property Registry to ensure there are no registered liens on your vehicle. Again, a buyer is likely to do this, so knowing the results in advance can save some hassle later on. You can also order a third-party vehicle history report, but this is optional.
A buyer will likely also ask you to provide a history of maintenance, repairs, and warranty or recall work, so it will save some time to pull this paperwork together in advance. And you should also expect a buyer to want to verify some personal information about you to protect themselves, such as that your vehicle registration matches your place of residence.
Finally, assume that a buyer will want to take your used vehicle for a test drive and a pre-purchase inspection as part of the buying process.
While these checks and balances are the buyer’s responsibility in Saskatchewan, as a seller you are legally obligated in certain ways. For example, it’s a legal offence to sell a vehicle, or to offer a vehicle for sale, that has a temporary inspection authorization without providing very clear disclosure of this up front. This type of authorization can be issued for a Total Loss Vehicle (e.g., a car that has been in a flood or totaled in a crash) or is being registered in Saskatchewan for the first time. You could be fined up to $50,000 and jailed for up to two years if you fail to disclose this correctly. You could also be held legally liable if you sell a vehicle as-is, even with the proper contracts and declarations, if a seller later sues you and the court determines that you misrepresented the vehicle’s status. The short version: be up front and honest. It will save you a lot of hassle.
Paperwork
The most important document to complete once you and a buyer have agreed on a price is a Bill of Sale. This is the same process as is found in Manitoba, Ontario, Alberta, British Columbia, Nova Scotia, Newfoundland, Quebec, and other Canadian jurisdictions.
You can create this document on your own if you’d like. A Bill of Sale is valid as long as it lists the required information such as the date of the sale, full names and contact information for both the previous owner and new owner, key information about the vehicle such as the Vehicle Information Number (VIN), model year, make and model, the agreed purchase price, and signatures from both the seller and the buyer. SGI offers a ready-made Bill of Sale as a downloadable PDF that will save you having to remember all of this yourself.
You’ll also need to complete the Transfer of Ownership form, which is located on your vehicle’s Saskatchewan Certificate of Registration. It’s your responsibility to provide the Bill of Sale and Transfer of Ownership forms to the buyer at the time the sale is agreed upon and finalized. Be sure to keep copies for your own records.
Once the Bill of Sale and Transfer of Ownership forms are completed, the sale is considered final. If you’re selling a vehicle privately in Saskatchewan, you are not obligated to offer or provide a cancellation period within which the vehicle can be returned.
Upon receiving the Bill of Sale and Transfer of Ownership documents, the car’s new owner has seven days from the date listed on the Bill of Sale to register and transfer their licence plate to the vehicle.
Plate Transfer
Be sure to remove your plate from the vehicle you just sold before the new owner drives off with it. In Saskatchewan, your licence plate is associated with you, and it should therefore stay with you after you sell your vehicle. If you’ll be buying a new vehicle, your local SGI office or motor licence issuer will transfer your existing plate and register the new vehicle for a nominal fee. This must be done within seven days of your new vehicle purchase.
If you will not be replacing the vehicle you just sold, return the plate to your local SGI office or motor licence issuer to be destroyed. This will help protect you from fraud that could occur if your plates are stolen or otherwise used without your knowledge.
Taxes
As a private seller, you’re not responsible for paying or collecting PST when you sell a used vehicle. The buyer will be required to pay PST on the sale at the time of vehicle registration, which is based on either the purchase price or the Red Book value, whichever is higher. There are exemptions for gifts between family members and any vehicle bought privately for personal or farm use that has a purchase price of $5,000 or less. (If your car’s value is in the neighbourhood of $5,000 and the buyer is pushing hard for a sub-$5,000 price, this is the likely reason.)
Ways to Sell a Used Vehicle in Saskatchewan
On your own: If you’re prepared to do more work, you can often make more profit by selling your car, SUV, or pick-up on your own. You’ll need to research an appropriate valuation for your car by looking at its odometer reading, condition, and vehicle history, and comparing that against similar vehicles in your market. You’ll also need to prepare the car for private sale by cleaning it up, taking some photos, and writing and preparing the listing. Fielding inquiries from interested buyers, arranging test drives and inspections, and completing the final paperwork are also essential steps in the process. It does take some time and effort, but by taking this on yourself, you should see a solid return.
100% online: In some areas, a fully online used car sales process may be an option. For example, the CarGurus Sell My Car feature will give you an instant estimate on your vehicle’s value, and then you’ll arrange for an expert to perform a vehicle walkaround, take some photos, and gather a few details. You’ll receive only the best offer from among all inquiries your listing receives, and you’ll be paid right away when the vehicle is picked up. (Note the CarGurus Sell My Car service is not yet available in Saskatchewan at the time of this article’s writing; watch the page for updates.)
Dealer trade-in: In Saskatchewan, when you use your car as a trade-in when buying a vehicle from a dealership, you’ll pay less PST on your final purchase. For example, if your used vehicle is valued by the dealer at $10,000 and you buy a new car from the same dealer valued at $40,000, you’ll only be taxed for $30,000 on the new vehicle purchase. While you’ll likely get less money outright for your old car than arranging the private sale on your own, the savings through this tax benefit may make up for it depending on the transaction.
To a dealer: Selling your car to a dealer without buying a new car to replace it is an option as well. This is likely the easiest option, especially if you don’t need a new vehicle, but it also tends to be the least profitable one.
Consignment: If you’re selling a high-end vehicle like an expensive luxury or exotic car, certain dealers may operate on consignment, where they charge a fee to manage the private sale on your behalf. This service is typically only offered on vehicles that are expected to command a high price.
Frequently Asked Questions (FAQs):
Which documents do I need to sell my vehicle in Saskatchewan?
To sell a car privately in Saskatchewan, the vehicle seller must provide completed Bill of Sale and Transfer of Ownership documents to the buyer.
What are the fees to sell a vehicle privately in Saskatchewan?
There are no mandatory fees to sell a vehicle in Saskatchewan. Fees such as transfer of vehicle registration and provincial sales tax are paid by the buyer.
Do I need a Saskatchewan Safety Standards Certificate to sell my car privately?
No. Pre-registration vehicle inspections are required for vehicles that are purchased outside the province or for Total Loss Vehicles, but getting and paying for these inspections is the buyer’s responsibility.
What is the penalty for selling a car privately in Saskatchewan?
Private sellers can be fined or jailed if they sell or offer for sale a vehicle with a temporary inspection authorization (i.e., a Total Loss Vehicle or a vehicle from out-of-province) without disclosing this up front, or if they grossly misrepresent the condition of the vehicle. There is also a penalty for “curbers” or “curbsiders,” people who sell used vehicles as a business who are not licenced to do so (up to $100,000 for corporations and $5,000 or one year in prison for individuals).
