How to Sell a Car in Ontario: What You Need to Know in 2026

Selling your car privately in Ontario typically nets you significantly more than a dealer trade-in would offer, but it also means handling the paperwork yourself, and Ontario has a few rules that catch first-time sellers off guard, particularly around what happens to your license plates and who’s responsible for getting a safety certificate. Getting these details right protects you from liability after the sale and helps the transaction go smoothly for both sides.

This guide walks through every step of selling a car privately in Ontario, from pricing it and getting your Used Vehicle Information Package to handing over the keys and reporting the sale to the province.

Step 1: Price Your Car Realistically

Before listing your car, check what similar vehicles are actually selling for, not just what they’re listed for, since asking prices and final sale prices can differ meaningfully. Look at recent completed sales on major Canadian marketplaces for your exact make, model, year, trim, and mileage, and factor in your car’s condition, accident history, and any outstanding maintenance needs.

Keep in mind that the buyer will owe 13% RST on whichever is higher between your agreed sale price and the vehicle’s wholesale value from the Canadian Red Book, which is a common source of confusion during price negotiations.

If your car is heavily worn or damaged, a professional appraisal can be used to justify a lower taxable value than the Red Book figure.

Step 2: Get Your Used Vehicle Information Package (UVIP)

Ontario legally requires sellers to provide buyers with a UVIP before completing a private sale. This document includes:

• The vehicle’s year, make, model, colour, body type, and other identifying details
• Registration history and number of previous owners
• Any liens registered against the vehicle
• The vehicle’s wholesale and retail values used to calculate RST
• A bill of sale section you’ll fill out together with the buyer

Order your UVIP before you start actively showing the car to buyers, since serious buyers will expect to see it, and having it ready signals that you’re a legitimate, organized seller.

Step 3: Understand the Safety Certificate (It’s Not on You)

This is one of the most common points of confusion in a private sale: a Safety Standards Certificate is not required from the seller in Ontario. The certificate confirms a vehicle meets Ontario’s minimum mechanical safety standards, and it’s the buyer’s responsibility to arrange one before they can register the vehicle and get plates in their name.

That said, having a valid safety certificate ready can make your car easier to sell, since buyers often factor the cost and hassle of arranging one into their offer, or hesitate to buy a car without one at all.

If you choose to get one done before listing, expect roughly 90 minutes for a full inspection covering brakes, steering, lights, tires, suspension, and a road test, at a cost that varies by inspection station since prices aren’t standardized.

A safety certificate is valid for 36 days after issue, so timing it close to your expected sale date matters if you go this route.

Step 4: Complete the Bill of Sale

While Ontario doesn’t require a standardized template, and a bill of sale can be handwritten or printed, it should include:

• Vehicle Identification Number (VIN), make, model, year, and engine/fuel type
• Body type and colour
• Purchase price and date of sale
• Seller’s full name, address, and signature
• Buyer’s full name, address, and signature

Many sellers use the bill of sale section included directly in the UVIP rather than drafting a separate document, since it covers the same required information and keeps everything in one package for the buyer.

Step 5: Remove Your License Plates

This is the detail that surprises the most first-time sellers: in Ontario, license plates are tied to the person, not the vehicle. When you sell your car, you keep your plates; they do not transfer to the buyer or stay with the car.

• Remove your plates from the vehicle before the buyer drives away, even if they’re paying and picking it up on the spot.
• Keep the plate portion of your vehicle permit (the green ownership document), which corresponds to your plate number.
• Give the buyer the vehicle portion of the permit, along with the UVIP and bill of sale.
• Transfer your plates to a new vehicle at ServiceOntario if you’re replacing the car, or surrender them if you’re not.

If you let a buyer drive off with your old plates still attached, you remain legally and financially responsible for any tickets, tolls, or accidents involving that vehicle until it’s properly registered in the buyer’s name, regardless of what any private agreement between you says.

Step 6: Cancel or Transfer Your Insurance

Contact your insurance provider the same day you complete the sale to cancel your policy on that vehicle, or transfer it to a replacement vehicle if you’re buying another car.

Driving away without insurance coverage removes a key piece of your ongoing liability tied to the vehicle, and most insurers will prorate a refund for any remaining coverage period once you provide proof of sale.

Step 7: Report the Sale (Optional but Recommended)

Ontario doesn’t strictly require sellers to formally report a private vehicle sale to the province the way some other jurisdictions do, since the buyer’s registration of the vehicle in their own name is what officially updates ownership records.

That said, keeping a signed copy of the bill of sale and a note of the date and buyer’s information protects you if any dispute or liability question comes up later, particularly around outstanding tickets or the vehicle’s condition at the time of sale.

What Buyers Will Need to Do After the Sale

Understanding what happens on the buyer’s side helps set expectations during the transaction:

• Get a Safety Standards Certificate if the vehicle doesn’t already have a valid one
• Register the vehicle and pay 13% RST at a ServiceOntario centre
• Obtain their own license plates, since yours don’t transfer with the car
• Arrange their own insurance before driving the vehicle, which is required before the vehicle can be registered

FAQs

Do I need a safety certificate to sell my car privately in Ontario?

No. A Safety Standards Certificate is the buyer’s responsibility, not the seller’s, and it’s needed for the buyer to register the vehicle and get plates, not for you to sell it. Some sellers choose to get one anyway to make their listing more attractive, but it isn’t a legal requirement to complete the sale.

Do my license plates go with the car when I sell it?

No. Ontario plates are registered to the person, not the vehicle, so you keep your plates when you sell your car. Remove them before the buyer takes possession, and either transfer them to a new vehicle or return them to ServiceOntario.

How much does a UVIP cost, and who pays for it?

A UVIP costs $20 and is the seller’s legal responsibility to provide to the buyer. It’s a one-time cost per sale, whether you order it online through ServiceOntario or purchase it in person at a ServiceOntario centre.

Does the buyer or seller pay sales tax on a private used car sale?

The buyer pays 13% RST when they register the vehicle at ServiceOntario, calculated on whichever is greater: the agreed purchase price or the vehicle’s wholesale value from the Canadian Red Book. The seller doesn’t collect or remit this tax directly.

Is selling a car privately in Ontario tax-free for me as the seller?

Generally yes, if you’re an individual selling your own personal vehicle rather than operating as a business. The 13% RST applies to the buyer at registration, not to you as income or sales tax on your end, though your specific situation can vary if you sell vehicles frequently enough to be considered a dealer.

What happens if I sell my car to a family member?

Vehicle transfers to a qualifying family member (spouse, parent, grandparent, sibling, or child) can be exempt from the 13% RST if the transfer is properly documented as a gift with the required sworn affidavit. The UVIP, bill of sale, and plate rules described in this guide still generally apply to the transfer itself.

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