Transferring car ownership in Ontario means completing the sale paperwork and removing your licence plates if you’re the seller. Buyers must register the car at ServiceOntario within six days of purchasing.
To map the seller and buyer responsibilities, our MyChoice team reviewed Ontario's used-vehicle buying and selling guide, Ontario's family-transfer guide, Ontario's specified-vehicle tax bulletin, and Ontario's vehicle-registration page.
What Documents Does the Seller Need to Prepare?
The seller gives the buyer:
- the completed and signed vehicle portion of the ownership permit;
- a signed and dated bill of sale;
- the Used Vehicle Information Package (UVIP); and
a Safety Standards Certificate, if required.
The seller keeps the licence plates and the plate portion of the vehicle permit. In Ontario, licence plates remain with the seller, not the vehicle.
How Do You Transfer Car Ownership in Ontario?
The buyer has six days to register the vehicle with ServiceOntario and pay applicable taxes and registration fees. They must present ServiceOntario with all sale documents, identification, the current odometer reading, proof of insurance, and any required safety documents. Additional charges may apply depending on whether you’re transferring your existing plates to your newly purchased vehicle or purchasing new plates.
Can You Transfer Vehicle Ownership in Ontario Online?
You can order some documents and forms online. However, as the buyer of a private used vehicle, you’ll need to register your vehicle in person at a ServiceOntario location and present the original documents and payment.
How Much Does it Cost to Transfer Car Ownership in Ontario?
If you’re buying a private passenger car from another individual, you’ll also have to pay Ontario’s 13% Retail Sales Tax based on the greater of the Red Book wholesale value or the price you’re paying for the car. Exceptions and alternative valuation standards apply to cars bought from dealerships, some cars with appraisals, some older vehicles, gifts, estate sales, and other types of vehicles.
The Ontario vehicle permit fee is a standard $32 for all vehicles. The cost of licence plates is $59 for a new or replacement licence plate with permit, but can be more or less depending on your situation, for example, if you have eligible licence plates that can be used. Check with ServiceOntario before your appointment for updated fees. Any outstanding fines in the licence plate holder’s name will be added to the fees.
Read More: Review Ontario Taxes on a Used Vehicle
Fit, Unfit, and Temporary Operation
You can’t drive a vehicle with only a signed bill of sale.
Usually, a used vehicle requires a Safety Standards Certificate to be registered as fit for road use and issued a licence plate, unless it’s a vehicle-specific exception. If you can’t make the vehicle meet the road-use requirements at that time, you may be able to register it with ServiceOntario as unfit until the requirements are met before driving.
In Ontario, you may be able to use a 10-day temporary licence plate sticker for some trips. For example, to drive to a garage for a Safety Standards inspection. Certain conditions apply, including vehicle and trip eligibility, licence plate, insurance and permit requirements.
What Role Does Insurance Play in a Car Ownership Transfer?
Call your insurer before you pick up a car to confirm the policy effective date, who can drive, how the car will be used, and the garaging address, and make sure you have the physical-damage coverages you want. Mention any leasing or financing company that may be interested.
Car insurance does not transfer from one owner to the next, and you need valid insurance in place before driving away to avoid legal consequences.
Changing cars can affect how much you pay. Safety features don't necessarily mean you’ll get better rates.
Read More: See How to Register a Car in Ontario
Can You Gift a Vehicle to a Family Member?
In some cases, if the vehicle is a gift, the recipient may qualify for an RST exemption. You’ll need to complete the sworn family-gift statement and provide ID, safety certification and other documentation, insurance, and the vehicle permit. Only one exempt transfer of the same vehicle between family members is allowed within a 12-month period.
In Ontario, a gift can qualify for the RST exemption if it's made between certain family members, including spouses, children, parents, brothers, sisters, grandchildren, grandparents, and a court-appointed guardian. Certain adoptive, step, half-sibling, in-law and great-grand relationships qualify too; see the full list and definitions on the provincial page. Selling your vehicle to a family member does not qualify as a gift.
Can a Car be Registered Under Two Names in Ontario?
Yes. When a joint owner dies, the Ontario Tax Bulletin specifies the documents needed to transfer the vehicle. Special provisions apply if the joint owners were legally married, but not if they were common-law spouses.
What else should be considered when registering a vehicle in more than one owner’s name? If the vehicle may be transferred, adding or removing owners constitutes a vehicle transfer in Ontario and can have tax and estate effects. To qualify for the family-gift exemption from Retail Sales Tax (RST), the recipient must have a qualifying family relationship with all current owners of the vehicle. If the vehicle is transferred to two recipients, both must have a qualifying relationship with the donor. RST is charged when a vehicle is transferred if a tax exemption doesn't apply, although you may be able to claim a refund from Ontario.
Before You Leave ServiceOntario
- Make sure all details, such as the legal name of all owners, address, VIN, plate, permit status, and ownership status are correct.
- Ensure you understand how much tax was calculated.
- Do not drive without valid insurance, permit, plates, and road-use status.
- Keep all documents, including the bill of sale, ServiceOntario transaction receipt, safety certificate, permit, UVIP, and proof of insurance.