Did you know that a specific document needs to be drawn up in the province of Ontario when transferring property ownership? That document is a Bill of Sale Ontario.
An MTO Bill of Sale can be an essential tool if any dispute arises about the purchase or sale of a car. In this article, we’ll provide an overview of what’s included in an Ontario Bill of Sale and how to complete one.
We will also offer tips on how to sell a vehicle or buy one and make sure your purchase goes smoothly. Stay tuned.
How to Buy a Used Car in Ontario
Buying a used car is a great way to get a vehicle you want at a reasonable price.
Steps to Buying a Used Car in Ontario
- Set your budget and decide on the make and model of the car you’re interested in. Remember that the selling price is not the only expense waiting for you. You should consider the maintenance price for the specific model, how much the car will cost to insure, etc.
- Decide whether you want to opt for buying a used car in Ontario privately or from a dealership.
- Once you’ve found a few cars that meet your criteria, it’s time for an vehicle inspection. You’ll want to take the car for a test drive and have a mechanic look it over to ensure there are no significant problems.
- Once you’ve found the perfect car, it’s time to negotiate a purchase price. That’s how you complete the process of buying a used car in Ontario.
By following these steps, you can be sure you’ll end up with the best possible deal on a used car in Ontario.
How to Buy a Car Privately in Ontario
Buying a car privately in Ontario can be a great way to save money, but it’s important to do your research and take precautions. Before meeting with a seller, check the vehicle’s history report and have a mechanic inspect it to look for any hidden damage.
Keep in mind that there’s also a used car tax. So, if you wonder how much tax you will pay on a used car, you can use a used car tax Ontario calculator.
Once you’ve negotiated a fair price, get the car’s registration and a Bill of Sale Ontario sellers offer in writing. Be sure to have the vehicle insured before you drive it off the lot.
Selling a Car in Ontario
If you live in Ontario and are thinking about selling your car, you have a few different options. You can opt for selling your car privately or trade it to a dealership.
Both options for selling a used car have advantages and disadvantages, so it’s crucial to weigh your options carefully before deciding.
Selling a car privately will usually net you the most money, but it can be a lot of work.
You’ll need to advertise your car, receive calls and emails from interested buyers, be prepared to answer all the questions of people interested in buying, and arrange test drives if you decide on selling a vehicle privately.
You’ll also need to be comfortable haggling with potential buyers over price. If you’re not up for the hassle, selling your car to a dealer may be a better option.
Selling your car to a dealership is convenient because you can do everything in one place, but you’ll generally get less money for your car than if you sold it privately.
Around 8,000 used car dealerships operated in Canada in 2021, so you have a wide choice regarding dealerships.
What Do You Need to Sell a Car in Ontario?
If you plan on selling your car in Ontario, there are a few things you need to have in order:
- Used Vehicle Information Package (UVIP): This provides potential buyers with important information about the car, including its vehicle history and any outstanding recalls, and is a must when selling a vehicle.
- Safety Standards Certificate from a licensed mechanic: This certifies that the vehicle meets all safety requirements and is roadworthy.
- A Bill of Sale for a car in Ontario and an Application for Transfer: The Bill of Sale Ontario offers will serve as official proof of car ownership. The Application for Transfer will allow the new owner to register the car in their name.
- If you want to give potential buyers even more peace of mind when trying to sell a used car, you can also purchase a CARFAX report, providing detailed information about the car’s history. It includes any accidents or damage that has been reported.
Bill of Sale Ontario
A Bill of Sale is a legal car sale form that details the transfer of ownership of property from one person to another.
When you purchase a vehicle in Ontario, you need to have a used car Bill of Sale Ontario offers to transfer ownership of a car from a seller to a buyer. It must be an original document, but it can be handwritten. There’s also a motorcycle Bill of Sale in Ontario.
The Bill of Sale should include the following information:
- a name and contact information of a buyer and seller
- a date and location of the sale
- a price
- payment terms
- a type of payment
- vehicle information (a make, model, year, colour and kilometres, VIN)
- whether there are any loans or liens on the vehicle and any conditions attached to the sale (such as “as is”)
You should keep a copy of the Bill of Sale for your records.
How to Write a Bill of Sale Ontario
You can write a Bill of Sale Ontario or have someone write it for you. If you decide on the first option, make sure you include all the necessary information of the transaction.
If you’re hiring someone to write the used car Bill of Sale for you, they will typically take care of all these details. That’s usually a notary public.
People Also Ask
What paperwork do I need to sell my car privately?
There are a few things you need to have for private car sales:
- a Used Vehicle Information Package (UVIP)
- a Safety Standards Certificate from a licensed mechanic
- a Bill of Sale and an Application for Transfer
- If you want to give potential buyers even more peace of mind, you can also purchase a CARFAX report.
How do you write a Bill of Sale in Ontario?
When you want to transfer vehicle ownership in Ontario, you can write a Bill of Sale or hire someone to do it for you. If you decide on the first option, make sure you include all the necessary information of the transaction.
If you’re hiring someone to write the Ontario vehicle Bill of Sale, they will typically take care of all these details. That’s usually a notary public.
Do you pay tax on private car sales in Ontario?
If your transfer of car ownership in Ontario was made privately, the Ontario government would charge a buyer a provincial retail sales tax (RST) of 13%. So, there’s Ontario sales tax on used cars.
How much tax do you pay on a used car in Ontario?
If you purchase the used vehicle from a dealership, you will have to pay the HST—provincial-federal Harmonized Sales Tax.
If you buy privately, you won’t have to pay the HST, but you will still be charged a 13% provincial retail sales tax (RST).
Is a Bill of Sale required in Ontario?
Most people know you need a Bill of Sale for a used vehicle sale or purchase. However, many people don’t realize that this Bill of Sale Ontario is required by law.
