Buying a used car privately in Toronto

Advantages and disadvantages of buying privately

Advantages:
- You pay only retail sales tax. The amount of it is based on the purchase price or the wholesale value of a vehicle, whichever is higher.
- Private sellers are usually more flexible on price.
- More chances to hear the truth about the car.
- Availability to check maintenance records
- No pressure from agressive salesperson

Disadvantages:
- You will have to transfer the ownership by yourself
- Private owners may not be available at daytime - at nighttime it's easy to miss something
- When you buy from a private you have no protection.
- Be aware about people who are in car buy and sell business without having a dealers license (curbsiders). They act like private sellers, but do business like car dealers. Which means if you buy a car from one of such guys and next day it breaks down, you won't have any protection.
In this case it's very helpful to check the car history - if seller bought the car just a month before it looks suspicious.

Where to look for a car in Toronto

There are few sources:
• Toronto new and used car dealers directory
• Trader.ca
• Toronto Star Online Classified
• Used Cars Ontario

What to ask the seller about

- Is the price negotiable? If so, ask how far he (she) would go down. Make sure nothing will be added to the discussed price
- Is the vehicle originally painted? If the car has never been repainted it insures you that it had no accidents and it's not rusty.
- What repair has been done? The less, the better - a good car is not the one that has been repaired; it's the one that didn't break
- Where and how the car has been maintained, any records available?
- How many owners?
- Emission test and safety certificate?
If the car will not have safety certificate and (or) emission test you will have to get them by yourself before register the car. Sometimes, it might be a biiig headache.
- When he (she) bought the car and why does he (she) sell it? May be the car was bought a month ago, fixed and now being sold to you or the owner has trouble to fix it, that's why he (she) wants to sell it - Ask about legal aspects - if there is no liens, etc. Make sure you deal with the person who owes the car and the ownership is on his (her) name.
Check our step-by-step Used car buying guide

How to transfer the ownership of a car

You can find all the information about this in the Ontario Ministry of Transportation web site. Or you can go directly to this page:
Buying, Selling or Transferring Used Vehicles in Ontario

If shortly, the private seller should buy a Used Vehicle Information Package at any Ministry of Transportation Office. It costs $20 It contains all you need:
1. Details of the car and its Red Book wholesale value.
2. Current registrant of the vehicle. So you can be sure that the seller is the actual owner of the car.
3. Vehicle history
4. Liens information to date of issue this package
5. Bill of sale which both, seller and buyer should sign.
Make sure you read it very carefully.
The seller should take off his (her) plates and give you completed Used Car Information Package, completed vehicle portion of the title, safety certificate and emission test (If you've agreed that the seller should provide them). You can register the car at any Driver and Vehicle License Issuing Office.
Find nearest to you Driver and Vehicle Licence Issuing Office

You should bring with you:
1. Completed and signed Used Car Information Package,
2. Completed and signed by the seller vehicle portion of the title (permit),
3. Proof of the insurance,
4. Safety certificate
5. Emission test
6. Your ID
7. Plate portion of the title if you already have plates.
All payments (registration fee, tax, etc.) can be made right there.

Where to shop for auto insurance

There are number of website where you can get an insurance quote online. The price varies a lot between different companies, get as many quotes as you can. Follow this link:
Auto insurance quotes

Vlad Samarin