How to Buy a Used Car in Ontario? – An Ultimate Guide

How to Buy a Used Car in Ontario? - An Ultimate Guide


Are you in the market for a used car in Ontario? It might be difficult to purchase a used automobile, especially if it’s your first time. Where do you even start with so many choices and aspects to take into account? But rest assured that we have you covered. In this ultimate guide, we’ll walk you through everything you need to know about how to buy a used car in Ontario. From choosing the right vehicle to registering it and getting insurance, we’ll cover all the bases so that you can make an informed decision and drive away with the perfect car for your needs. So sit back, relax, and let’s dive into the world of buying used cars in Ontario!

How to Buy Used Cars in Ontario?

How to Buy Used Cars in OntarioHow to Buy a Used Car in Ontario? - An Ultimate Guide

Buying a used car in Ontario can be a daunting task, but with some research and preparation, it doesn’t have to be.

Here are some tips on how to buy a used car in Ontario:

  • Firstly, determine your budget and the type of car you need. Consider factors such as fuel efficiency, reliability, and safety features. Research different makes and models that fit your criteria.
  • Next, decide where you want to buy the car from – a private seller or dealership. Private sellers may offer lower prices but there is less protection for buyers if something goes wrong. Dealerships usually offer warranties and financing options but at a higher cost.
  • Before purchasing any vehicle, always inspect it thoroughly inside and out for any signs of damage or wear and tear. Take it for a test drive to ensure everything is working correctly.
  • Once you’ve found the perfect car within your budget, make sure all necessary paperwork is in order before finalizing the purchase. This includes ownership transfer papers, bill of sale documents etc.
  • Don’t forget about taxes and insurance costs associated with buying a used vehicle in Ontario! Do your due diligence by researching these expenses beforehand so that they don’t surprise you down the road.

Where to Buy a Used Car in Ontario?

When it comes to buying a used car in Ontario, there are several different places you can look.

  • One option is to check out local dealerships that specialize in used cars. These dealerships often have a wide selection of vehicles to choose from and may even offer warranties or financing options.
  • Another option is to browse online marketplaces such as Autotrader or Kijiji. These sites allow you to search for cars based on your specific criteria, such as make and model, price range, and location. You can also filter your search results by features like mileage, age of the vehicle, and whether it has been certified.
  • Private sellers are another popular choice for those looking to buy a used car in Ontario. Many people choose to sell their cars privately through classified ads or word-of-mouth referrals. While this can be a more affordable option than buying from a dealership, it’s important to do your due diligence before making any purchases.
  • No matter where you decide to buy your used car in Ontario, always remember to inspect the vehicle thoroughly before making any final decisions. Take it for a test drive if possible and ask questions about its history and maintenance records. By doing your research ahead of time and taking the time needed during the purchase process, you’ll increase your chances of finding the perfect used car for you!

How to Register a Used Car in Ontario?

Registering a used car in Ontario is an essential process that every car buyer must complete to legally drive their vehicle. The registration process involves transferring the ownership of the car from the previous owner to the new owner, obtaining license plates and validating insurance.

Here’s how you can register your used car in Ontario:

  • Firstly, obtain a Used Vehicle Information Package (UVIP) from ServiceOntario or online. This package contains information about the vehicle’s history, including accident reports and lien records.
  • Next, visit a ServiceOntario center with all necessary documents such as UVIP, safety standards certificate (if required), bill of sale, Original vehicle permit from a seller with completed transfer portion and proof of insurance coverage.
  • At the ServiceOntario center, submit these documents along with payment for registration fees and taxes based on your vehicle’s value. After submitting all required documents and payments; you will receive your license plates. You need to submit your documents within 6 days of purchase.
  • After receiving your license plates get them installed properly on the front & rear bumper following instructions provided by manufacturer guidelines
  • Finally don’t forget to keep copies of all registration paperwork for future reference

Used Car Taxes in Ontario

Used Car Taxes in Ontario

When you’re buying a used car in Ontario, it’s important to consider the taxes that come with the purchase. In most cases, you’ll need to pay both federal and provincial sales tax on your vehicle.

When you buy a used car from a used car dealership in Ontario, you’ll have to pay 13% HST (harmonized sales tax). The vehicle dealership must charge a 13% sales tax on all of its sales to be a registered GST/HST business; this tax is then paid to the CRA (Canada Revenue Agency).

The federal government charges a 5% Goods and Services Tax (GST) on all used cars sold in Canada. Meanwhile, the Ontario government charges an additional 8% Harmonized Sales Tax (HST) on top of that.

However, there are some exceptions to these taxes. For instance, if you’re buying a vehicle from a private seller rather than a dealer, you may be exempt from paying HST altogether. Additionally, certain types of vehicles like electric or hybrid cars may qualify for tax rebates or incentives.

It’s also worth noting that if you plan on importing a used car into Ontario from another province or country, there may be additional fees and taxes involved in the process. To avoid any surprises when it comes time to pay for your used car purchase, make sure you do your research ahead of time and factor in all applicable taxes and fees into your budget.

Used Car Insurance in Ontario

Used car insurance is an important aspect of buying a used car in Ontario. By law, all vehicles on the road must have valid insurance coverage. When buying a used car, it’s important to consider the type and amount of insurance coverage you need.

  • The first thing to keep in mind is that the cost of your insurance premium will depend on various factors such as your driving record, age, location and the make and model of the vehicle. That said, some types of cars are more expensive to insure than others due to their level of safety features or likelihood of theft.
  • When shopping for used car insurance in Ontario, it’s recommended that you obtain quotes from multiple providers before making a decision. Some insurers offer discounts for bundling policies or completing safe driving courses which could help save money on premiums.
  • When purchasing a used car with financing or leasing options through a dealership or lender, they may require certain levels of comprehensive and collision coverage as part of their car loan agreement terms. It’s essential to be aware of these requirements before signing any agreements so you can ensure adequate protection while avoiding unnecessary costs.

Tips and Tricks for Buying a Used Car in Ontario

 how to buy used car ontario

If you’re in the market for a used car in Ontario, several tips and tricks can help ensure you make a smart purchase.

  • At first, it’s necessary to conduct research. Don’t just rely on the seller’s description of the vehicle – look up independent reviews and ratings from reputable sources.
  • Next, be sure to ask for a vehicle history report. This can provide valuable information about any accidents or damage the car has experienced in the past. Additionally, consider having a mechanic inspect the car before making an offer.
  • When negotiating with the seller, don’t be afraid to walk away if you feel uncomfortable or uncertain about anything. Always keep in mind that there are substitutes.
  • Be aware of any hidden fees or charges associated with purchasing a used car in Ontario. This includes taxes, registration fees, and insurance costs.
  • Trust your instincts when it comes to buying a used car. If something seems too good to be true or you have reservations about the transaction, it may be best to move on and keep looking until you discover the ideal car for your requirements at a reasonable price.


Buying a used car in Ontario can be an overwhelming process, but with the right knowledge and preparation, it doesn’t have to be. By following this ultimate guide on how to buy a used car in Ontario, you’ll be equipped with all the information you need to make an informed decision.

Remember to always do your research before buying a vehicle and take your time during the purchasing process. Don’t forget about important steps like registering your vehicle and obtaining insurance.

With these tips and tricks, you are ready to embark on your journey of finding the perfect used car for yourself. Keep them in mind when searching for cars around different dealerships or private sellers.

FAQs on  how to buy used car Ontario

1. Can you drive a used car you just bought in Ontario?

You can drive a vehicle you recently purchased, to give you a quick response. However, there are some specifics you need to be aware of about Ontario’s requirements for auto insurance and registration.

2. How do I avoid paying sales tax on a used car in Ontario?

If the used car you’re purchasing in Ontario is 20 years or older, a qualified appraiser’s services are required. In Ontario, you don’t have to pay sales tax if you’re buying a secondhand car from a close relative, getting one as a gift, or if you’re a Status Indian.

 3. Do I need insurance to buy a used car Ontario?

Yes, before you may drive, you must have valid insurance. To complete your transaction, it is advised that you obtain evidence of insurance.

4. Do I have to pay tax on a used car from a private seller Ontario?

You must pay the provincial-federal Harmonised Sales Tax (HST) if you bought the used car from a car dealer. The Ontario government will still charge you a 13% provincial retail sales tax (RST) even if you bought your car privately and did not have to pay the harmonized sales tax (HST).

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