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Carproof used-car-buying-guide Document Transcript

  • 1. USED CARBUYING GUIDEEverything you need to know beforeyou buy your next used vehiclewww.carproof.com
  • 2. Who is CarProof?CarProof is a Canadian provider of vehicle history reports – a critical toolwhen you’re buying or selling a used vehicle. A CarProof vehicle historyreport establishes trust and transparency between a used car buyer anda used car seller by removing the guesswork about a vehicle’s past –replacing it with impartial, accurate and real-time data.When you’re buying a used vehicle, CarProof gives you full insight into what’s happenedto that vehicle over the course of its lifetime – allowing you to make your decision withcomplete peace of mind.CarProof searches across North America for acomplete picture of a vehicle’s past, including:• If the vehicle was in any reported accidents• Where the vehicle has been registeredand what the vehicle branding in thosejurisdictions is• Was it a U.S. vehicle? If so, was it properlyimported?• Enforceable cross-Canada lien search• Odometer records and moreVisit our Car Advice section onwww.carproof.com for more tips andinformation to help you navigate the used carbuying process and beyond! From advice onhow to sell your vehicle to ways to prep yourcar for a road trip, CarProof is a resource youcan count on throughout your vehicle’s lifetime.You can also find us on socialmedia on our Facebook, Twitter,YouTube and LinkedIn pages.What does CarProof tell you?www.carproof.com
  • 3. Table of contentsWhat’s the Right Used Car for You?.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Where to Research a Used Car. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Where to Find a Used Car.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3How to Get a CarProof Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410 Questions to Ask Before You Buy Your Next Car.. . . . . . . 5-6How to Inspect Your Car’s Interior and Exterior.. . . . . . . . . . . . . 7-810 Ways to Avoid Used Car Fraud.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-10How Much Fuel Will Your Car Consume?.. . . . . . . . . . . . . . . . . . . . . . . 11How to Do a Proper Test Drive.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12How to Negotiate Your Used Vehicle Purchase.. . . . . . . . . 13-14Why a Pre-purchase Inspection is Important. . . . . . . . . . . . . . . . . . 15Finalizing a Private Used Car Sale.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16All information provided in this guide is for information purposes only. CarProof is not responsible for, and expressly disclaims allliability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the guide.
  • 4. ?What’s the RightUsed Car for You?When you’re searching for anew used car, deciding whichvehicle is right for you willdepend on your needs, yourbudget and your personalpreferences. Here’s a list ofquestions to consider:• Will this be your primary vehicle or do you haveanother car that will be used equally or moreoften?• What type of driving will you be doing with thevehicle – short trips around town or long dailycommutes?• Do you have a certain vehicle year or mileagein mind?• Do you have a preference when it comes tomake, model or colour?• How many passengers do you need toaccommodate on average?• Do you need extra space in the trunk orvehicle to haul additional items?• What major features are most important toyou? You’ll want to rank the following factorsto see what matters most: safety ratings fuel economy size of the vehicle number of doors maintenance and insurance costs all-wheel drive overall price driving experience interior space vehicle power resale value• What accessories or options would you likethe vehicle to have?• How price sensitive are you? Do you havea set budget that you’ll need to stick tothroughout the process?This will give you a better idea of your vehiclewants and needs. From there, you can begin toresearch the type of vehicle you’re looking forand begin the shopping process.1
  • 5. h Seek out reviewsFriends and family are great resources for usedcar advice. Before you settle on one particularvehicle, ask your friends why they chose thevehicles they did and pay attention to the factorsthey considered.There are also several online resources youcan use to source more information:• ConsumerReports.orgThis is an independent and non-profitorganization that puts together completeratings and recommendations on vehicles inCanada.• Autos.caYou can view new and used car reviews,Canadian consumer reports and informationon pricing, car specs and more.• Transport CanadaSee if past or current recalls exist forthe particular make and model you’reinterested in.h Learn more about pricingThe value of a vehicle depends on the conditionof the car and what’s happened to it over itslifespan. You need to consider factors like theage of the car, the mileage, the wear and tearboth inside and out, how well it was cared for,any flaws or mechanical issues it may have, thecar’s accessories and added features and anyrecent updates made to the car.There are a few different online resources youcan check out to see what other people arecharging for a specific make and model:• Canadian Red Book• Canadian Black Book• autoTRADER Value FinderWhere to Researcha Used CarNow that you have an idea of what type of vehicle you’relooking for, it’s important that you spend time researchingthe makes and models that you’re interested in. Here’s aguide to help you kick off your used car research.Did You Know?CarProof has partnered withsites like autoTRADER, Kijiji andAuto123.com so dealers and sellerscan post CarProof reports in theirvehicle listings. You can view theCarProof report for free whenevera seller has posted a report.2
  • 6. • Online listing sites: There are plenty ofonline vehicle listing sites where you canbrowse both dealer and private listings tosee what cars are available in your area.Sites like autoTRADER.ca, Kijiji Autos andAuto123.com all offer the option to view anavailable CarProof report for the listing orrequest one from the seller.• A public auction: You may have heard of theauto auctions that car dealers attend and useto source vehicles to fill their lots. Many autoauctions also designate specific dates wherethey open the auction process to the public.• The local newspaper: The communitynewspaper might have a car classified sectionin print and online.• Online or print buying guides: Dependingon your location, you may have access toan online or print buying guide with vehiclelistings.Where to Finda Used CarDid You Know?CarProof has over 200 years ofcombined industry knowledge.Take a trip to your local car dealeror check out their website to seewhich cars they have on their lot.Here are a few places you can check out to find a usedcar that fits your needs:3
  • 7. Ordering a CarProof vehicle history report is a simple and easy process that will provide youwith the important information you need to buy or sell a used car. A CarProof report will tell youif the vehicle you’re interested in has been in accident, if there’s an outstanding lien, as well asregistration, branding and service details. All of this information can be obtained in three easysteps, in less than five minutes:1 Get the vehicle’s VIN. You canfind the vehicle identificationnumber (VIN) on the driver’sside of the vehicle’s dashboard,on the inside of the driver’s sidedoor or in vehicle documentslike the ownership, insurancefiles or service records.2 Visit www.carproof.comand click on our order page.You’ll need to have the VINas well as a valid Visa orMasterCard.3 Check your inbox. Within aminute of submitting your order,you’ll receive your vehiclehistory report by email.How to Get aCarProof Report1B7HF16Y7SS44322If you have any questions about your report,please visit CarProof’s FAQ section or Glossary.You can also contact CarProof’s Customer Experience Team by calling1.866.835.8612 or emailing support@carproof.com.4
  • 8. What’s the condition of the car and the current mileage? Has anythingon the car ever been replaced or updated?Find out about any known issues with the car, any flaws in the appearanceas well as new updates. These details will let you know how much moneyyou can expect to invest in the vehicle down the line.Why are you selling the car?The seller might be ready for an upgrade or perhaps the car’s size doesn’tsuit their lifestyle anymore. It’s good to know the reason behind this changebecause you might run into the same issues.Who did you buy the vehicle from, when did you buy it and where from?Discover details about how the car was driven, who the previous ownerswere and what’s happened over the lifespan of the car. Learn if the car waspurchased from a dealership or a private seller and if it’s spent time in adifferent province or country.Did the car have regular oil changes and maintenance?If maintenance, service records or receipts are available, ask to see them.Do you have a CarProof report?Get the CarProof report to seethe full details on the vehicle’shistory. If they don’t have oneavailable, ask for the vehicleidentification number (VIN) ofthe vehicle so you can purchasea report yourself.Purchasing a used vehicle can at first seem like an intimidatingexperience, but if you know the right questions to ask andhave the right information, you can navigate the process easilyand with confidence. Here’s a list of questions you should askthe seller before you commit to buying.10 Questions to Ask BeforeYou Buy Your Next Car12345Printthese two pages andtake them with you toensure you rememberthe 10 questions!5
  • 9. Can I see the VIN, the vehicle ownership and youridentification?Confirm that the seller is in fact the legal owner anddouble check that the registration information matcheswith the car’s VIN. Check your CarProof report as wellto be sure the VIN and vehicle details in the report matchup with the vehicle you see in front of you.Is there any of the original manufacturer’s warranty left on the vehicle?If you’re looking to purchase a newer used vehicle, then the car may stillhave some warranty left on it.How long of a test drive can I take?Aim to spend up to 30 minutes on a test drive so you can evaluate how wellthe car runs.Can I take the car for an independent inspection?It’s important that you take the car to a mechanic fora pre-purchase inspection so you can get an expert’sopinion on what’s happening with the car under thehood.Can we fix this problem before purchase? If during your vehicleinspection, or through your mechanic’s inspection, you discover a flawthat can be fixed, see if it’s possible to get this done before you purchasethe vehicle.6789106
  • 10. Suspension: Make sure the caris located on flat ground andcheck that the vehicle is level tothe ground.Paint/exterior: Inspect thevehicle’s exterior for rust, paintchips, rough spots, cracks andsections of paint that don’t match.Look for panel gaps: Watchfor large or small gaps betweenthe door panels, the trunk andhood panels as this could meana panel has been replaced orrepositioned.Windshield: Examine theglass for any chips, cracks orscratches.Trunk: Is the trunk largeenough to suit your needs?If you’re frequently luggingaround a stroller or oversizedsports equipment, bring thesemeasurements along to ensurethese items will fit.Keys: Double check that theseller has two sets of keys forthe vehicle and test the key inall of the door locks and thetrunk lock.Under the hood: Although it’sbest to leave this area up toyour mechanic during the pre-purchase inspection, you cancheck here for any obvious rustspots or cracked hoses.Doors: Open all of the doorsto ensure that they are inworking order. Are they big (orsmall) enough for you and yourfamily’s needs?Measure: If you’re planning topark your car in a garage or in asmall parking spot, bring alongmeasuring tape so you’ll know ifthe car fits.Tires: Check the tires forcracks or bald spots. Theyshould be worn evenly andthe brand and size of each tireshould match. Ask the seller ifa spare tire is included with thecar.VIN: Make sure the VIN islocated on the right side ofthe vehicle’s dashboard whenyou’re looking through thewindshield from outside of thevehicle. It can also be foundon the inside of the driver’sside door, near where the doorlatches. Write this numberdown because you’ll needit to run a CarProof report ifthe seller hasn’t provided onealready.Outside lights: Confirm that allof the lights on the vehicle areworking and aren’t cracked,missing or filled with moisture.This includes:Headlights (daytime,nighttime and high beams)Hazard lightsFog lightsBrake lightsLicense plate lightTurn signalsBack-up lightsHow to Inspect YourCar’s Interior and ExteriorWhen you’re looking to buy a previously-owned car,the appearance of the vehicle can be a great indicatoras to what’s happened to that car during its lifetime.Here’s a list of areas and features to check when youvisit your potential new car:1B7HF16Y7SS44322Outside the carPrintthese two pages andtake them with you soyou know what areasof the car to check!7
  • 11. Seats: Take the time to sit in each of thevehicle’s seats and consider the following:• Are the seats easily adjustable and do allof the controls work?• Do you like the look and feel of the seats?• Are there any burns, holes, stains, spots orscratches?• Does your family fit in the backseat and howcomfortable would they be during a long car ride?• Will the backseat accommodate your car seat?Inside lights: Are all of your interior lightsand controls fully functioning? This includesheadlights (daytime, nighttime and high beams),ceiling and interior lights, glove box lights andmirror lights.Manuals and information: Does the vehiclecome with a manual? Can you access anymaintenance or service logs from the previousowner?Dashboard: Record the odometer readingand compare it to the car’s listing. Does thedashboard display any warning lights?Controls and accessories: Try out every controland switch to make sure they are in properworking order. Consider checking:the windshield wipers and fluid controlheater/air conditioningvents and airflow settingsmirror adjustmentsGPSdoor and window lockspower windows or roll-up handlestereopower outletsfront window and rear window defrostspeakershornclocksteering wheel tilt adjustmentsunroof controlsreleases for the hood, trunk and gas capSmell: Does the car have an odour? A hangingair freshener could be masking a smell.inside the carBy giving the inside andoutside of the car a detailedexamination, you’ll be betterinformed about what’shappened during the lifespanof your vehicle. Armingyourself with these details willhelp you in your quest to findthe car that’s perfect for you.8
  • 12. You should always question a deal that seems too good to be true.If the price seems too low or the seller does something that sets off your alarm bells,walk away from the sale.Beware of curbsiders.A curbsider is an unlicensed individual, dealer or retailer who buys up vehicles andinstead of registering them under their own name, will post the same vehicles forsale with a mark-up. The curbsider might misrepresent the real condition of the caror hide major issues.Get the CarProof report.This report provides you with the complete history of the vehicleincluding accident information, registration details, cross-Canadalien information and full U.S. history. Ask the seller for a report orbuy your own to ensure you know the full story behind the vehicle.Check out the dealer.If you’re buying your used car from adealership, then look into the dealer’sbackground and reputation. Each provincehas a governing body that issues dealerlicenses, a requirement in order to legallysell vehicles in Canada.10 Ways to AvoidUsed Car Fraud42139As with any major purchase, you need to do your duediligence before buying a used car to make sure the vehicleis right for you and to avoid any scams. Here are 10 tips tohelp ensure you get a great deal and a great car:
  • 13. 7658910Look for liens and stolen cars.The CarProof report will tell you if there are enforceable liens fromanywhere in Canada on the car. A lien is an ownership interestthat a vehicle owner grants to a party, as security or collateral fora loan. A CarProof report can also tell you if a vehicle is markedas actively stolen.Verify the seller’s identity and the VIN.Ask your seller for proof of identity and check that the seller’sname and address matches up with the owner information onthe vehicle registration form. This is also a good time to doublecheck the make, model, year, colour, license plate and vehicleidentification number (VIN) of the car against the registration form.Check for odometer rollbacks.Have a look at the actual odometer – do all of the numbers line up and is there anyevidence of sabotage (scratches, cracks) in and around the odometer? Does the wearand tear of the vehicle show more use than the mileage would indicate?Double check the condition of the car.Give the inside and the outside of the car a thorough inspection and take a test drive tomake sure the car is in the same condition that the seller is advertising.Don’t pay before you get the vehicle.Never agree to pay for the vehicle upfront or send money via wire transfer. If theseller requests a third-party escrow service, investigate the service to make sure it’slegitimate, as many online escrow sites are fraudulent.Take the vehicle for a pre-purchase inspection.Get an independent, licensed mechanic to give thevehicle a detailed inspection. Bring your CarProofreport with you as you’ll want to verify that anydamage was properly repaired.10
  • 14. For many consumers, fuel consumption is a majorconsideration in the used car purchasing process.Many manufacturers use miles per gallon (MPG) to advertise the fuel efficiency of a vehicle. ForCanadian consumers who follow the metric system, it can be difficult to convert the MPG rating tolitres/100 kilometre (L/100 km), making average fuel consumption a confusing number. In order tomake this process easier, here is a formula to convert L/100 km into MPG and MPG into L/100 km:If you’re looking for a vehicle with the best fuel efficiency, keep in mind that the lower the L/100 kmrating, the lower the fuel consumption. On the other hand, remember that the higher the MPG, thebetter the fuel consumption. Buyers should also be aware that fuel consumption ratings can differbetween the U.S. and Canada.In order to make sure you’re selecting the vehicle that’s right for you, you’ll also want to knowapproximately how much you can expect to pay for gas each year, based on your vehicle use. InCanada, the average person drives approximately 20,000 km per year, with a mix of 55 per cent citydriving and 45 per cent highway driving.You can use the followingformula to estimate yourfuel use for the entire year.By multiplying this numberby the average fuel cost inyour region, you can comparethe expected annual fuelcosts for the variousvehicles you’re interested in.How Much FuelWill Your CarConsume?Fraction ofcity drivingFraction ofhighway drivingXXXX+100100Annual distancetravelled (km)Annual distancetravelled (km)City fuel consumptionrating L/100 kmHighway fuel consumptionrating L/100 kmL/100 km = MPG =282.48MPG282.48L/100 km11
  • 15. h Bring a friend or family member alongwith you to the dealership. Take along an extraperson to help you spot any red flags throughoutthe process and have them take notes for youduring the test drive.h Decide which features are important toyou. Outline which features you require in yournext used car and bring a checklist with you toreview on your drive to see how well that vehiclemeasures up.h Plan your test drive route. Try out the vehiclein different environments such as stop and gotraffic, highway driving and smooth and bumpyroad conditions to see how the car reacts toeach surface.h Get a feel for the vehicle before you leavethe lot. Get in and out of the car a few times– is the entrance uncomfortably high or low?Play around with the car’s accessories beforeyou hit the road so you aren’t distracted duringthe drive. You’ll want to check the following:• Can you comfortably reach the radio,temperature and mirror controls?• Do the pedals and seat adjustments suityou?• Are the accessories you’ll use on a dailybasis working? ie. lights, vents etc.• How long does the heat and air conditionertake to reach the maximum temperature?h Drive it realistically. Try accelerating,decelerating, passing and merging. What’sthe engine’s power like? Does it acceleratefast enough for you? Or does it have extrapower that you don’t think you need? Doesthe vehicle upshift and downshift smoothlyand at the correct time?h Evaluate how the car feels. Is the steeringwheel comfortable for you? Is it sensitive to thetouch or is there a lag when you turn? Does thevehicle require constant adjustment while youdrive? Make a variety of left and right turns tosee how the car reacts.h Hit the brakes. Take the vehicle to a safesetting where you can test out the car’s stoppingpower. Brake both hard and soft – did the car’santi-lock brake system kick in as promised? Didthe car pull to one side or did you have to pushthe pedal to the floor? These will be things you’llwant to bring up to the seller and your mechanicduring a pre-purchase inspection.h Put it in park. At some point during the drive,try parallel parking the vehicle. This will give youanother perspective on the angles of the car andthe potential blindspots you could face on a dailybasis.Don’t rush through the process.A good test drive can take up to30 minutes so take your time.You’re making a big commitmentand the test drive can reallyinfluence whether or not you wantthe car.h Try it again. There are certain elements of thevehicle that you won’t experience in the daylight.Ask the seller if you can drive it again at night totest out the car’s headlights and experience howit drives. Also, don’t be afraid to take the carfor another spin if you have more questions or ifanother family member wants to weigh in on thevehicle.How to Do aProper Test Drive12
  • 16. $Take into account other factors that influence the selling price.You’ll want to consider: age, the mileage, the wear and tear both inside and out, howwell it was cared for, any flaws or mechanical issues it may have, the car’s accessoriesand added features and any recent updates made to the car.Get the CarProof report.A CarProof report will tell you if the vehicle has ever been inaccident, if there are any outstanding liens on the car as well asgives you insight into the registrationand branding history.Take the car for a pre-purchase inspection.Get an independent, licensed mechanic to givethe vehicle a detailed inspection. Bring yourCarProof report with you as you’ll want to verifythat any accident damage was properly repaired.Remember the sales tax.Don’t forget to consider any provincial taxes andextra fees when you’re calculating the final costof the vehicle.How to Negotiate YourUsed Vehicle PurchaseYou’ve found a vehicle that is right for you, and you’re readyto talk with the seller about a potential agreement. When itcomes to negotiating the price, the key is to settle on a dealthat benefits both parties. Here are some things you shouldkeep in mind before you commit:Do your research.Check out the Canadian Red Book, the Canadian Black Book,use AutoTrader.ca’s Value Finder tool or check out listing sitesand classified ads to see what the average price of that makeand model of vehicle is.4521313
  • 17. Know your budget.Before going in to the sales office or meeting with a private seller, determine what amountis the highest price you’re willing to pay for that particular vehicle.Ask the tough questions.If the CarProof report does reveal that the vehicle has beendamaged, check to make sure the vehicle has been properlyrepaired. Don’t be afraid to bring up any other flaws you find.Consider value-adds.Sometimes another opportunity to get more value for the price you pay is through add-ons. Examples of this are things like under-coating, or other services. If these are itemsyou like or might have purchased anyway, then they could be a great thing to ask about togain more value for your purchase price.Be respectful.Don’t give the seller a lowball offer – you’ll risk insulting the seller and they probably won’twant to negotiate with you any further.Have confidence in your offer.When you make your offer to the seller, say it with confidence. Don’t mutter it, or say it ina way that makes your price seem like an uncertain question. Be assertive and state theoffer in a way that shows the seller you’re serious.Check your emotions.When you’re bartering back and forth with the seller, don’t get angry, pushy or arrogantand take caution if you find the seller acting this way. Keep in mind that the goal of thenegotiating process is to find a fair price that both you and the seller can be happy with.Don’t rush the decision.If the seller makes a counteroffer and you’d like to think about it,that’s OK. However, know that the seller may have other potentialbuyers and you could risk losing out on the car if you wait.Be prepared to walk away.There are plenty of options out there when it comes to buying a used car. Don’t get tooattached to the vehicle if you and the seller can’t come to a deal.67891011121314
  • 18. What is a PPI?A PPI is performed by a qualified and licensedmechanic or auto technician, who will give thevehicle a thorough inspection to determine thecosmetic, mechanical and safety condition ofthe car. The mechanic will pinpoint any currentand existing conditions as well as highlightpotential issues that could arise in the future.By learning more about what’s happeningunderneath the hood, you’ll either feel moreconfident that you’re making a great investmentor you’ll discover that there are a few hiddenconditions that could give you more leveragewith price negotiations.The PPI usually costs around $100 to $200,depending on the service centre and the extentof the inspection, and can take anywhere from45 minutes to two hours, depending on the car.The technician will examine the exterior of thecar, the interior, under the hood and will alsoinvestigate the under carriage. Many qualityservice centres also conduct a test drive tosee what’s happening with the car when it’sin motion.Where can I get one?If you’re buying from a dealer, then manydealerships can conduct the PPI onsite. Theyshould also be open to you taking the vehiclefor an inspection by an independent mechanic.As a consumer, it’s your right to have a PPI andusually a non-binding offer to purchase and arefundable deposit are considered acceptablepre-conditions to an inspection.If you’re getting the inspection done offsite, oryou’re dealing with a private seller then ideally,you’ll want to take the vehicle to a mechanicthat you already have a great relationship with. Ifyou don’t have a go-to service centre, then youcan ask the dealership for recommendations.CAA has a list of preferred partners as does theAutomobile Protection Agency (APA). The APAalso has an inspection form on its website thatyou can print off and take into the shop.A pre-purchase inspection is the final step tomaking sure the car you’re considering is theright vehicle for you. By arming yourself withinformation from a PPI and a CarProof report,you can be confident about the history of thevehicle as well as its current state.Why a Pre-purchaseInspection is ImportantDid You Know?CarProof reports can be purchasedas part of Canadian Tire’s VehiclePre-purchase Assessment package.Once you’ve found the car that you think is “the one,” it’s tempting to rushthrough the buying process so you can get into the driver’s seat as soon aspossible. But before you fully commit, there’s one more important step youneed to make and that’s to take the car for a pre-purchase inspection (PPI).15
  • 19. finalizingthe saleEverything you need to know - by province
  • 20. You’ve done your homeworkand researched what type of caryou want. You’ve met with theprivate seller, gone for a test drive,asked all the right questions andtaken the car for a pre-purchaseinspection. Now you’re readyto buy, so how do you go aboutfinalizing the sale?Each province across Canada has differentregulations. We’ve compiled the steps andinformation that you need to know, as wellas provided links to the appropriate websites.When in doubt, it’s always best to contact yourprovincial government to make sure you and theseller have covered your bases.h british columbiaIn order to transfer the ownership of a usedvehicle in British Columbia, the seller must pickup a Transfer/Tax Form from an Autoplan broker.To prepare the car for sale, the seller shouldremove the license plates from the vehicle aswell as the insurance and registration, tearingoff the vehicle registration portion and signingthis portion.The buyer receives the signed registration andgives payment to the seller. Once the seller ispaid, both parties can fill out the Transfer/TaxForm. It’s recommended that the seller and thebuyer go together to take the registration andthe Transfer/Tax form to an Autoplan broker. Atthis point, the buyer can register the vehicle,license it and insure it all at the same time.If the buyer and seller don’t switch theregistration of the vehicle right away, the buyercan drive the newly purchased vehicle with theirold plates for up to 10 days from the date ofpurchase as long as: a) The vehicle the buyer is switching plates tois registered in B.C. b) The buyer has sold or disposed of the oldvehicle. c) Both vehicles fall into the same category(ie. passenger vehicles). d) The plates are valid B.C. license plates. e) The buyer carries the signed Transfer/Tax Form for the vehicle, the originalregistration, the still valid insurance papersfor the buyer’s old vehicle and proof thatthe buyer sold the old vehicle.Keep in mind that in the Lower Mainland orFraser Valley, a vehicle may have to pass anAirCare emissions test before it can be insuredor registered. Visit the AirCare website for moreinformation.For more information, visit the InsuranceCorporation of British Columbia website.Finalizing a PrivateUsed Car SaleDid You Know?CarProof is the only real-time vehiclehistory report available in NorthAmerica.
  • 21. h albertaWhen buying a used vehicle in Alberta, both thebuyer and the seller need to fill out a Bill of Sale.This will include the date of the sale, addressand identification information about the buyer andseller, the year, make, model and VIN (VehicleIdentification Number) number, odometer reading,the total price, how it is being paid for and anypromises or statements about the vehicle, suchas warranties or claims about the condition. Boththe buyer and the seller may want to keep a copyof the Bill of Sale for reference purposes.Most sellers will require you to leave a deposit.The remainder of the payment is usually in theform of a money order or bank draft. Be awarethat signing a sales offer and leaving a depositrepresents your commitment to purchase and islegally binding. The seller has the right to keepthe deposit if the deal is not completed in orderto cover his or her costs. If this is a concern toyou, include in your offer a note that the depositis fully refundable in the event that the dealdoesn’t go through.To register the used vehicle, the buyer will needthe proof of ownership (Bill of Sale), a validAlberta insurance ‘pink card’ and identification.An inspection certificate from AlbertaTransportation is required for all first time Albertaregistrations of used vehicles (and used vehiclesreturning to Alberta that were last registered inanother jurisdiction). There are some exceptionsso it’s always best to check with a ServiceAlberta registry agent.If the buyer currently has valid Alberta licenseplates, they may transfer them to the newvehicle. They can use their previous plates on thenewly purchased vehicle for up to 14 days fromthe date on the Bill of Sale. During this graceperiod, the buyer must carry proof of ownership,insurance and valid registration for the licenseplate being transferred to the vehicle.For more information, visit the Service Albertawebsite. You can also check out the AlbertaTransportation website.h SaskatchewanIn Saskatchewan, all retail sales are final. As abuyer, keep in mind that unless clearly statedverbally or in writing by a seller, there is nocancellation period for returning a vehicle.The seller must provide the buyer with the‘Transfer of Ownership’ or ‘Vehicle IdentificationCertificate’ that’s attached to the seller’sregistration certificate, along with a Bill of Sale.The buyer can use the license plates from theiroriginal vehicle on a new vehicle for up to sevendays when they buy a new or used vehicle inSaskatchewan. Before that time expires, thebuyer should take the completed Transfer ofOwnership form and the Bill of Sale to a MotorLicense Issuer.The Motor License Issuer will let the buyerknow if they are required to pay PST on thevehicle. PST does not apply to the purchaseof eligible used light vehicles on which tax hasbeen previously paid in full. The buyer can alsodetermine if PST is payable on a particularvehicle by using Saskatchewan GovernmentInsurance’s free online Saskatchewan VINsearch.For more information, visit the SaskatchewanGovernment Insurance website.h ManitobaIn Manitoba, the seller must provide the buyerwith a signed Transfer of Ownership Document,a valid Certificate of Inspection (COI) and a Billof Sale that is signed by both parties and has theyear, make, model and VIN (Vehicle IdentificationNumber) as well as the purchase price and thedate it was bought.The buyer will want to check to make sure theyare buying from the legal owner as the registeredowner and the legal owner aren’t always thesame person. Only the legal owner has theright to sell or dispose of the vehicle. The legalowner’s name is on the right-hand side of the
  • 22. registration card. The registered owner’s name ison the left-hand side of the registration card.Most buyers will have to register and insure thenewly purchased vehicle with Manitoba PublicInsurance (MPI) before driving it. It’s best for thebuyer to check with MPI before to ensure theyhave necessary coverage.If the vehicle was manufactured before Sept. 1,2007, the vehicle may fall into Manitoba’s Most-at-Risk vehicle category. In order to reduce theamount of vehicles that are stolen in Manitoba,since 2008 the provincial government hasmade it mandatory for approved immobilizersto be installed in Most-at-Risk vehicles. Theseinclude vehicles that are used in Winnipeg orused to commute to Winnipeg, ones that havebeen stolen or that someone has attemptedto steal and vehicles that are being importedinto Manitoba from another jurisdiction. Beforeregistering a “Most-at-Risk” vehicle, the buyermust show an Immobilizer Installation Certificate.If the vehicle is newer, then this might not beof concern to the buyer as Transport Canadarequired all automakers to install this device onnew vehicles manufactured after Sept. 1, 2007.If the buyer is purchasing a vehicle that is in adifferent registration class from their previous car(i.e. they sold their car and they’re now buying atruck for their gardening business) then the buyerwill need to get new license plates or a specialsticker to put on their license plates when they’retransferring registration and insurance from onevehicle to the other. The class can be found onthe front of the Vehicle Registration Card, at thetop left. If the vehicle is in a different class, thenthe buyer must report the change to an Autopacagent before driving in order to receive the newregistration and the special sticker.If the vehicle is in the same registration, the buyercan transfer the license plates from their currentlyregistered vehicle to their new one. The buyerhas seven days after the day they disposed oftheir old vehicle to register their new replacementcar. During this seven day period, the samecoverage on the old vehicle will apply to the newone. If this coverage is insufficient, it’s best toregister the new vehicle immediately.When a buyer purchases a vehicle privately, thebuyer will be charged retail sales tax when theyregister the vehicle. This tax is based on the fairmarket value of the vehicle; either the purchaseprice or the average wholesale price, whicheveris greater.For more information, please visit the ManitobaPublic Insurance website.h OntarioIn Ontario, every privately sold vehicle must beaccompanied with a Used Vehicle InformationPackage (UVIP) from the Ontario Ministryof Transportation. This package contains adescription of the vehicle, the VIN, year, makeand model, retail sales tax requirements, a billof sale and tips on vehicle safety standardsinspections. The seller must show this packageto the buyer as it plays a role in finalizing the saleof the vehicle.The seller has to give the vehicle permit, thecompleted and signed Application for Transfer(found on the back of the ‘vehicle portion’ of theregistration permit) and the completed Bill ofSale from the UVIP (with their name, signature,date and purchase price) to the buyer.The seller keeps the license plate (Ontario uses aplate-to-owner registration system which meansthey stay with you) and the plate portion of thevehicle registration permit. The seller can then letthe Ontario Ministry of Transportation know thatthe vehicle has sold.The buyer has to register the used vehicle withinsix days of the sale. To do so, they have to takethe UVIP, the vehicle permit and the Applicationfor Transfer to the Driver and Vehicle LicensingOffice. Here, the buyer will pay the retailsales tax, based on the purchase price or thewholesale value (whichever is greater). The buyerwill also pay the licensing fees for the plates and
  • 23. permit. The buyer can attach plates they alreadyown (they need to bring in the plate portion oftheir vehicle registration permit), and validatethem with a sticker or purchase new plates withproof of identity that verifies their legal name,date of birth and signature.The buyer has to provide proof of insurance anda Safety Standards Certificate if the vehicle is tobe plated.If the vehicle is registered, plated and in the DriveClean Program, then the buyer has to presentthe vehicle emissions report. To find out if avehicle needs an emissions test, a buyer or sellercan visit the Ministry of the Environment’s DriveClean website or call 1-888-758-2999.For more information, please visit the OntarioMinistry of Transportation website.h QuebecIn Quebec, in order to finalize a private vehiclesale, the buyer and seller should sign a contractto make things official. This isn’t mandatory,but it’s advisable. CAA Quebec provides itsmembers with standard contracts, but Bill of Saleforms can also be found online.In the Civil Code of Quebec, a term called latentdefects is used to define “warranty of quality”when making a sale. This states that when a saleis conducted privately between two people, theseller must declare any latent defects. These aredefects that make the property for sale “unfit forthe use for which it was intended or which sodiminish its usefulness that the buyer would nothave bought it or paid so high a price if he hadbeen aware of them.” This warranty applies tothe property sold as well as accessories. Thislaw also requires that the buyer report a latentdefect to the seller in writing within a reasonableamount of time after discovering the defect.The buyer has three years to bring proceedingsagainst the seller if the seller refuses to settle thematter to the buyer’s satisfaction.The Quebec Automobile Insurance Corporationrecommends that when conducting a privatevehicle sale, both the seller and the buyer go toa SAAQ service outlet where both parties willbe required to show identification. If the seller isselling the vehicle but can’t make it to a serviceoutlet, they can send someone on their behalfafter assigning them Power of Attorney.When the buyer goes to register the vehicle, theywill be responsible for paying Quebec Sales Taxon the actual purchase price or the book value,as found in Guide Hebdo, less $500 – whicheveris higher. If the vehicle is over 10 years old andcan’t be found in the Guide Hebdo, then thebuyer will pay QST on the purchase price.For more information, please visit the CAAQuebec website and the Quebec AutomobileInsurance Corporation website.h Newfoundland and LabradorWhen buying a used vehicle in Newfoundlandand Labrador, both the buyer and the seller needto fill out a Bill of Sale. This must include the dateof the sale, the buyer’s name and driver’s licensenumber, the year, make and model of the vehicle,the plate number and serial number, the purchaseprice and the name and signature of the seller.If HST was collected by the seller, then the Billof Sale will also need to include the seller’sHST registration number. A Bill of Sale can befound on the reverse side of the current vehicleregistration permit or a separate document canbe used. Both the buyer and seller may want tokeep a copy for reference purposes.Did You Know?CarProof shows accident history fromevery province, including provinceswith public insurance.
  • 24. The seller of a used vehicle is required to notifythe Motor Registration Division within 10 days ofthe sale of a motor vehicle. The seller can find aNotice of Sale on the reverse side of the vehicleregistration permit for this purpose. Failure tosubmit this within 10 days is an offence andthe seller could be fined. The seller could alsoreceive traffic fines that should be issued tothe new owner or the seller could be financiallyresponsible for an accident if the new ownerdidn’t obtain insurance.The buyer is required to transfer the ownershipof the vehicle within 10 days and failure to do thiscould also result in a fine.When the buyer registers the vehicle with theNewfoundland Motor Registration Division,they’ll need the seller’s vehicle registration permit(the seller must be the registered owner of thevehicle), a Bill of Sale and/or a sworn affidavit(a sworn affidavit from the buyer and seller isrequired when the purchase price of the vehicleis below the wholesale Red Book value, avehicle valuation guide), a completed and signedinsurance declaration (found on the reverse sideof the seller’s vehicle registration permit) and amotor vehicle safety inspection certificate.The buyer will be required to pay a transfer fee,provincial sales tax on the purchase price or theRed Book (a vehicle valuation guide) value of thevehicle and any outstanding fines on the buyer’srecord.For more information, please visit theNewfoundland Motor Registration Divisionwebsite.h Nova ScotiaIn Nova Scotia, in order to finalize a private usedvehicle sale, the seller must sign the reverseof the Certificate of Registration (Transfer ofOwnership). The seller must also fill out thesection headed Transfer of Title Certificate ofSale (Part 1) and give this to the buyer.In addition to this, the seller has to sign theNotice of Sale portion of the Certificate ofRegistration and indicate who the vehicle wassold to. The seller should then return the Noticeof Sale to the Registry of Motor Vehicles.When a used vehicle is purchased privately,the vehicle must display a valid Motor VehicleInspection issued within 30 days prior to the dateof the sale in the name of the seller, showing atwo year expiry date for “type 1 vehicle” or aone year expiry for a “type 2 vehicle” from thetime of inspection. The Motor Vehicle Inspectioncan also be obtained by the buyer prior to thetransfer. Another option is for the buyer to obtaina letter from the Registry of Motor Vehicles at thetime of transfer, providing an additional 10 daysto get a valid Motor Vehicle Inspection. If theseller and buyer complete a “Sale of Vehicle NotSafety Approved” form, a vehicle permit may notbe issued until a valid Motor Vehicle Inspectionsticker is obtained in the name of the buyer.Within 30 days of the date of purchase, the buyermust complete an Application for Certificate ofRegistration (Part 3, found on the Certificate ofRegistration from the seller), including the taxdeclaration in order to register the vehicle. At thetime of registration, the buyer is responsible forpaying HST (the tax is based on the Red Bookvalue, a vehicle valuation guide, of the vehicleor the purchase price, whichever is greater),the transfer fee and the registration fee to theRegistry of Motor Vehicles.The plates stay with the seller – they can bereassigned to a new vehicle or returned to theRegistry of Motor Vehicles. The buyer can attachtheir own plates (as long as they’re valid) andthe vehicle will be registered to the new ownerfor up to 30 days from the date of the sale. If it’snot registered by the new owner within this timeframe, the vehicle’s registration will expire untilit’s re-registered.If the buyer doesn’t have plates to attach, they canobtain a temporary permit from the Registry of MotorVehicles, which will be valid for up to 30 days.For more information, please visit the ServiceNova Scotia website.
  • 25. h New BrunswickIn New Brunswick, in order to transfer theownership of a vehicle from a seller to buyer,the seller must sign the back of the Certificateof Registration. The buyer’s name, addressand date of birth are required on the transferdocument and the buyer must present theCertificate of Registration to any issuing office.In order to register the vehicle in their name, thebuyer must present the Certificate of Registrationto a New Brunswick license issuing office. Thisis the point when the buyer will be required topay sales tax on the vehicle as well as any otherapplicable fees.The buyer must refrain from driving the vehicleuntil the registration certificate is recorded in thenew purchaser’s name.For more information, please visit the NewBrunswick Department of Public Safety,Motor Vehicle Branch website.h Prince Edward IslandIn Prince Edward Island, in order to transferthe ownership of a vehicle from the seller to thebuyer, the seller must fill out and sign the back ofthe registration marked vehicle permit. The sellermust also complete the Notification of Transferform on the registration permit and mail it withinseven days of the transfer date to the Register ofMotor Vehicles in P.E.I.The buyer has seven days from the date oftransfer to change the registration of the vehicleto their name. When doing so, the buyer mustpresent the Vehicle Permit (signed by theprevious owner), the Bill of Sale or receipt, theMotor Vehicle Inspection Form (in the presentowner’s name or buyer’s name) and a validinsurance card. P.E.I. requires that all vehiclesand trailers undergo an annual inspection andyou can find more information on the inspectionprogram here.The buyer will be charged sales tax based on theRed Book value (a vehicle valuation guide usedby Canadian government, dealers, insurance,financial institutions and appraisers), the Bill ofSale or an appraisal, whichever one is greater.For more information, please visit the PrinceEdward Island Department of Transportationand Public Works website.h NunavutFor more information, please visit Nunavut’sDepartment of Economic Development andTransportation website.h Northwest TerritoriesWhen buying a used vehicle in NorthwestTerritories, both the buyer and the seller need tofill out a Bill of Sale. This must include the dateof the sale, the buyer’s name, the buyer’s licensenumber, the seller’s name, the make and modelof the vehicle, VIN number, odometer reading,the purchase price, any terms or conditions andthe signature of the seller. Both the buyer andseller may want to keep a copy of the Bill of Salefor reference purposes.The seller must sign the back of the Certificate ofRegistration and give this to the buyer.Did You Know?A buyer should always request aCarProof report from the seller of aused car. If the seller does not providea report, ask for the car’s VIN so youcan buy your own CarProof report.
  • 26. The Bill of Sale (or another document containingthe exact same information) must be presentedby the buyer to register the vehicle undertheir name, along with valid insurance for thenew vehicle, proof of residency, and the oldregistration signed by the seller. At this point, thebuyer will sign the Bill of Sale.For more information, please visit the NorthwestTerritories Transportation website.h YukonIn order to purchase a used vehicle from aprivate seller in the Yukon, the buyer and sellermust complete, sign, and date a Bill of Sale. This,along with proof of insurance (a faxed copy willsuffice) should be presented to a Motor Vehiclesoffice in order to switch the registration over tothe buyer’s name.For more information, please visit theGovernment of Yukon’s Motor Vehicleswebsite.CarProof’s Customer Experience Team isavailable Monday through Saturday to help answerany report questions you might have.Email us at support@carproof.com or call 1.866.835.8612.
  • 27. www.carproof.com