Buying and Selling Used Vehicles

Whether you’re buying or selling a used car, you have certain obligations to ensure you make a fair and economical transaction. Consult the following information on your rights and responsibilities.

Selling a Used Car

Under law, private sellers of most motor vehicles must provide buyers with a Used Vehicle Information Package (UVIP). This package contains:

the vehicle's registration history in Ontario;
vehicle lien information (i.e. whether there were any outstanding debts on the vehicle in Ontario up until two business days before the seller bought the UVIP);
average wholesale value on which the minimum tax owed is based and other information dealing with vehicle safety standards;
retail sales tax and forms for an affidavit;
bill of sale.

The UVIP costs $20 and is available from all Ministry of Transportation Driver and Vehicle Licence Issuing Offices.

Consumers can also order the package using their credit card by calling the Ministry of Government Services, Personal Property Security Registration Branch. From the Toronto area, call: 416-325-8847. From elsewhere in the province, use our toll-free line: 1-800-267-8847. There is also a TTY number, 416-326-8866, for the speech/hearing impaired.

Visit the Ministry of Transportation website for more information on buying, selling or transferring used vehicles.

Buying a Used Car

If you plan to buy a used car, it’s wise to take it to a licensed, independent mechanic to inspect for any potential problems before you make your purchase.

Personal Property Security Act search

Before buying a used car or other used goods of significant value, consumers should do a Personal Property Security Act search to protect themselves financially. A search may find that the seller or a previous owner has obtained a loan and that the lender may have rights in a used car that a consumer intends to buy. If so, the search results will allow the consumer to contact the seller to confirm whether or not the loan is still in effect and to obtain further details. If the loan has been repaid, the buyer should insist that the seller require the lender to promptly register a discharge. Do not enter into a sale until you have proof that this is the case.

If a lender has rights in the used car and a search is not done, the car could later be seized if the borrower fails to repay the loan. Consumers do not need to search when buying a used car from a registered motor vehicle dealer in Ontario unless the car is worth more than $15,000.

Where are searches done?

Searches can be done in person at 375 University Avenue, 2nd Floor, Toronto. Outside Toronto, contact your local land registry office to find the closest office. To find a land registry office near you, look in the Blue Pages of your local telephone book under “Land Registration.” You may also submit a search request by mail, using an enquiry request form available at any of the offices that handle Personal Property Security Registration (PPSR) searches.

Online, visit the access enquiry (and registration) services. You can pay by major credit card or through a deposit account set up by the Companies and Personal Property Security Branch.

If you have an approved credit card or a deposit account with the branch, you can also conduct a telephone search by calling 416-325-8847 or toll-free in Ontario at 1-800-267-8847. TTD users dial 1-800-461-8866, or 416-326-8866 in Toronto.

Vehicle Identification Number (VIN) search

There are two searches you should do when buying a car: against the VIN and against the name of the business or individual selling the car. As well, you may wish to search the names of any previous owners.

How do you do a VIN search?

The VIN is the identification number the manufacturer affixes to the vehicle, usually on the dashboard. The VIN should be obtained directly from the vehicle – the VIN on the vehicle permit may be incorrect.

If there is any difference between the two numbers, a search should be done against both. A searcher may select an identical VIN search or a similar VIN search. The identical VIN search will disclose only those registrations that set out the exact VIN searched. The similar VIN search will disclose registrations with a VIN that the Personal Property Security Registration (PPSR) system determines is similar, in addition to registrations with the exact VIN.