Getting a car is a big step and a huge quality-of-life change, and it is essential to understand what car ownership means and how it transfers when we sell or gift it.
How to Transfer Vehicle Ownership in Ontario: Step-by-Step Guide
The steps for transferring vehicle ownership in Ontario differ depending on the transfer’s circumstances. We’ve covered gifting a car to a family member and buying and selling a used car. Let’s take a look at the general process of transferring vehicle ownership:
- Match up the car’s Vehicle Identification Number (VIN) with the one on the permit.
- Complete the bill of sale on your Used Vehicle Inspection Package (UVIP), which can be ordered through ServiceOntario.
- Complete the Application for Transfer.
- Register the vehicle.
- Pay any outstanding fees.
- Complete and show insurance documentation.
- Remove the licence plate.
- Notify the Ministry of Transport of the vehicle’s ownership transfer.
Can You Transfer the Vehicle Ownership in Ontario Online?
No, in Ontario, transferring vehicle ownership cannot be done online. You must visit one of the ServiceOntario locations.
How Much Does it Cost to Transfer Car Ownership in Ontario?
ServiceOntario charges a $32 fee for the vehicle permit. Buyers must also pay 13% Retail Sales Tax (RST) on the greater of the purchase price or the vehicle’s wholesale (Red Book) value, plus any applicable plate and sticker fees.
What Role Does Insurance Play in a Car Ownership Transfer?
Insurance plays an important role in a car ownership transfer because you can’t legally drive the car you just bought without an active insurance policy. Insurance doesn’t transfer from the car’s previous owner to the new owner, so the new owner needs to have proof of insurance before being able to drive their new car. You’ll face legal consequences if you’re caught driving without a valid insurance policy.
Transferring car ownership may affect your insurance premium because different car makes and models have different risk profiles. If you buy a used older car known to be accident-prone or have expensive replacement parts, your premiums may rise. Conversely, buying a new car with advanced safety features may lower your premiums.
Can a Car be Registered Under Two Names in Ontario?
Yes, joint ownership of a vehicle is possible! The two parties can be family, friends or colleagues. In this, both names will be used on the permit and on any other paperwork, such as the transfer of ownership.
Can You Gift a Vehicle to a Family Member?
The ownership can be transferred between eligible family members without paying Retail Sales Tax or RST in Ontario. For this, the following information needs to be provided to Service Ontario:
- Proof of vehicle insurance
- Driver’s License
- Vehicle Ownership Permit (the green document we were talking about earlier).
- Plate transfer declaration
- This completed form is for a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario
- Safety Standards Certificate if transferring to a family other than a spouse
*As of April 1, 2019, emissions tests are no longer required for most light vehicles. Only heavy diesel commercial vehicles need it.
What if I am Purchasing a Used Vehicle?
Before settling on terms and signing that deal, make sure you’ve checked the vehicle’s history, emissions records, authorization of ownership, debt record, and visual features.
To transfer the ownership, ensure that you:
- Check that the VIN on the vehicle matches the one on the owner’s permit.
- Complete the Application for Transfer.
- Register the car within 6 days of purchase.
- Pay the retail sales tax, licensing fees for the plates, permit, and sticker.
- Fill out the Bill of Sale section within the Used Vehicle Information Package.
- Show proof of car insurance.
- Further, the seller should give you:
- The completed vehicle portion of the owner’s permit;
- The Used Vehicle Information Package includes the bill of sale specifying the name of the seller and the purchase price;
Are you selling a used vehicle?
As a seller, you must do the following:
- Provide a Used Vehicle Information Package to the buyer.
- Complete and sign the Bill of Sale along with the buyer by filling out the:
- Name and date;
- The buyer’s name and address;
- Purchase price;
- Complete and sign the Application for Transfer, found under the vehicle portion on the back of the ownership permit.
- Retain the license plate so that you:
- Don’t get charged for parking or speeding tickets by the buyer.
- Can register your plates on other vehicles.
- Request a refund for unused full months on your plate stickers.
- Notify the Ministry of Transport that your vehicle has been sold.
- Obtain a safety standards certificate from a licensed mechanic.
Key Advice from MyChoice
- You can transfer car ownership without paying retail sales tax if you gift the car to a family member. You can do so at your local ServiceOntario centre.
- Buying a new car may affect your insurance premiums because the car’s make and model can impact your rates depending on how risky it is to insure.
- Car insurance doesn’t transfer between owners. If you bought a used car from someone else, make sure you have an active policy before finishing the ownership transfer.