7.7: Buying a Used Vehicle

• ​Where are you travelling?

• Do you expect a lot of heavy traffic?

• ​What type of car do you need?

• ​Do you use the vehicle for other purposes than driving?

• ​Max. amount that you can afford.

• ​Include HST, licensing fees, license plates

  Other costs to consider:

  • ​Depreciation — some cars tend to be worth more as they age than others

  • Fuel Economy — if you’re shopping for a used car in Toronto fuel efficiency can save or cost you a lot of money in the long run

  • Insurance — payments will vary according to your age, driving experience, and the vehicle

    Repair & Maintenance — some vehicles are more reliable and cheaper to repair

• ​Kelley Blue Book

• Edmunds

• Car and Driver

• Consumer Reports​

​You can look for used cars that are for sale in resources such as these:

• ​3rd Party Websites — websites like Kijiji and autoTRADER that show used vehicles for sale in your area from private sellers and dealerships

• ​Print Listings and Ads — magazines, newspapers, classifieds, and other

• ​Car Dealerships — check out a used car dealer’s website or even go to their physical lot to see what they have available​

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Each of these has their own advantages. 3rd party sites show more vehicles, but for cars from dealerships they won’t show as much information or be as up to date.

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• ​Once you’ve found a vehicle in your search that fits your needs and your budget, you can contact the seller and arrange to see it in person.

• This is your chance to talk to the seller or salesman more questions about the vehicle, see its history and important documents, and make sure that you’re not getting ripped off.

• You may want to bring a friend/relative that has expertise with cars

• You may also want to set up an inspection at a local mechanic to ensure that there are no major issues with the car.

• Some services offer onsite inspections.

• ​Give the vehicle a thorough visual inspection of the exterior, interior and engine to see if there are any signs of damage. If everything looks okay, ask to take it for a test drive to make sure that it feels comfortable and operates smoothly. If they do not let you inspect the car or take it for a test drive, consider that a red flag that they’re not being honest with you.

​Ask to see the proper documentation for the vehicle to make sure everything is legitimate. These should include the following:

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• Used Vehicle Information Package (UVIP) — has all the important details about the vehicle as well as its registration history and lien information

• ​Safety Standards Certificate — shows that the vehicle was deemed safe to drive under Ontario’s legal standards

  The UVIP is absolutely necessary, as it contains all the relevant paperwork to be filled out and signed in order to transfer legal ownership. The other two are not legally necessary, but without them there is far more risk and uncertainty for you as the buyer. Make sure you insist that they are done before you purchase the vehicle.

• ​If you are satisfied with the condition and documentation of the vehicle after inspection, you can begin the process to purchase it from the seller. This involves negotiating and paying an agreed upon price (and any payments), and making sure the proper paperwork is filled out and transferred.

​Once you buy your vehicle from the seller you are not yet finished, as there are some final steps you need to take to finalize your legal ownership. This includes registering the vehicle with the government and getting it insured. If you are buying from a dealership they will provide most of the forms and offer to do some of the work for you, for a fee. If you buy from a private seller you will most likely have to do much more yourself.

​Before you can fully register your vehicle with the government, you must have proof of insurance. What company you choose and how much you pay will vary, but there are certain things you must do in order to be valid in Ontario:

• Insurance must come from a company that is licensed by the province

• ​Must carry liability insurance card in your vehicle while driving it

• ​Your policy must include third—party liability for $200,000 in case the driver causes injury or death

​The rest of what is included in your policy is up to you to negotiate with the company. You can find out more about that process in our guide to getting car insurance.

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• Safety and Emissions Test Certificates — if the seller did not provide them then you will have to pay to have them done

• Driver’s License — should have a valid Ontario driver’s license already

• Completed UVIP Forms — see step 4.2

• Proof of Purchase — receipt from the purchase or Bill of Sale from the UVIP

• Original Vehicle Permit — should receive this from the seller

• ​You will need two license plates on the front and back of the vehicle

• Plates are valid to the owner and not the vehicle so you will have to get your own set after purchase

• Validation stickers must be renewed every one or two years and usually expire on your birthday

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Did You Know? You can pay extra to have your Ontario license plate personalized with an assortment of letters, numbers, and even one of 60 graphics. The only other restriction is that you can’t have a configuration that someone else already has registered.

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