Buying a used car in Ontario: dealer vs. private sale

Buying a used car is a big purchase. In Ontario, the rules change depending on whether you buy from a registered dealer or from a private seller.

Buying from an OMVIC-registered dealer

Every dealer in Ontario has to be registered with the Ontario Motor Vehicle Industry Council (OMVIC). When you buy from a registered dealer, you get these protections:

• All-in pricing. The advertised price has to include every fee and charge. That covers freight, PDI, admin fees and anything else the dealer charges. Only HST and licensing can be added on top.
• Disclosure of material facts. The dealer has to tell you in writing if the vehicle was a daily rental, taxi, police or emergency vehicle. They also have to tell you if it has been in a collision with more than $3,000 in damage, or if it’s branded rebuilt or salvage.
• Access to the Compensation Fund. If a registered dealer doesn’t meet its obligations, eligible consumers may be able to make a claim to the Motor Vehicle Dealers Compensation Fund.

Buying privately

Private sellers have to give you a Used Vehicle Information Package (UVIP) from ServiceOntario. It covers the vehicle’s registration history, any liens and a wholesale/retail value. Private sales don’t come with the dealer protections above, so do your own homework:

1. Get a vehicle history report.
2. Have an independent mechanic inspect the car.
3. Make sure there are no liens on the vehicle, or you could end up responsible for the seller’s debt.

Certified vs. as-is

A certified vehicle comes with a Safety Standards Certificate, which shows it passed a safety inspection at a licensed station. An as-is vehicle has not been certified. It may need repairs before you can put plates on it. Dealers have to clearly identify as-is vehicles in their ads and in the contract.

The bottom line

Ask questions, get everything in writing and never feel rushed. A good dealer will be happy to show you the paperwork. For more on your rights, visit omvic.ca.