How to Buy a Used Car in Ontario

The UVIP is a mandatory document when selling a used vehicle privately in Ontario. It costs approximately $20 and is ordered through ServiceOntario by the seller.

It contains: vehicle registration history, current and outstanding liens, written-off or stolen vehicle status, and the fair market value range for the vehicle. Always request a UVIP from a private seller before purchasing.

When buying from a licensed dealer, the UVIP is handled differently — but you should still ask about lien status and write-off history, both of which appear on the CarFax report we provide with every vehicle.

A CarFax report shows accident history, number of previous owners, service records, odometer readings at each service event, and whether the vehicle was used as a rental, taxi, or fleet unit.

Red flags to look for: salvage/rebuilt title, multiple accidents, odometer rollback indicators, or gaps in service history with high mileage between entries.

At GSMotorsinc, we provide a CarFax report with every vehicle as a standard part of the buying process — ask to see it before your test drive.

A pre-purchase inspection (PPI) is a thorough mechanical assessment of the vehicle by a qualified technician. For a private purchase, take the car to an independent mechanic before signing — typically costs $100–$150 and is always worth it.

When buying from GSMotorsinc, our 150-point inspection covers engine, drivetrain, brakes, suspension, electrical, HVAC, safety systems, interior, and exterior. You receive a copy of the report with every vehicle.

When buying from a registered dealer, HST (13%) is charged on the purchase price. However, when you have a trade-in, HST is only charged on the net difference — saving you money.

When buying privately, no HST is charged on the transaction. However, when you register the vehicle, you pay RST (Retail Sales Tax) at 13% of the higher of the purchase price or the average wholesale value from UVIP — so you can't under-declare a private sale price.

Buying from a dealer with a trade-in often results in more HST savings than buying privately — especially on higher-value vehicles. See our Trade vs Sell guide for a detailed example.

OMVIC (Ontario Motor Vehicle Industry Council) regulates all registered motor vehicle dealers in Ontario. When you buy from an OMVIC-registered dealer, you have important consumer protections under the Motor Vehicle Dealers Act (MVDA).

Key rights: the dealer must disclose if a vehicle was previously used as a daily rental, taxi, police vehicle, or had structural damage. They must provide accurate information about the vehicle's history. Misrepresentation can be grounds for unwinding the transaction.

If you have a dispute with a registered dealer, you can file a complaint with OMVIC at omvic.on.ca. Private sales have no such protection — another reason to buy from a registered dealer.

Most buyers finance their vehicle purchase. Key things to understand: APR (Annual Percentage Rate) is the true cost of borrowing including fees; the loan term affects monthly payments and total interest paid; and your down payment reduces both.

We work with a network of lenders for all credit types — from prime rates for strong credit to second-chance financing for buyers with past credit challenges. Use our payment calculator to estimate your monthly cost.