When buying a used car in Ontario, you should receive a number of documents. For private sellers, do your research, ask for a Carfax report, and always use caution. These individuals often misrepresent themselves as private sellers, while also failing to disclose mechanical problems with the vehicle or turning back the odometer.īecause curbsiders can end up costing you thousands, always shop with a used car dealer that's licensed by the Ontario Motor Vehicle Industry Council (OMVIC). Beware of CurbsidersĬurbsiders, or the Canadian term for an unlicensed car salesman, are problematic throughout Ontario and the rest of Canada. Once you buy the vehicle, you'll owe a 13% harmonized sales tax (HST) on the motor vehicle, regardless of whether you purchase from a private seller or a dealer. If you paid less for the vehicle than the Red Book value, the Red Book value still determines the taxes you pay. The Red Book value also comes in the Used Vehicle Information Package, or UVIP, that you receive from the seller. ![]() To determine your tax rate, the Ministry of Finance uses the Red Book value of the vehicle. ![]() These taxes are confusing if you've never purchased a vehicle before, so here's a quick breakdown to understand them (and prevent shock when seeing the final price of the car). Buying a used car in Ontario comes with its own set of tax considerations when you're the buyer.
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