Question 1

How do I check for a lien on a used car in Canada?

Accepted Answer

Run a PPSA (Personal Property Security Act) search through your provincial registry. Each province has its own lien registry — Ontario, BC, Alberta, and most other provinces all have online search tools that return results in minutes for a fee of about $10–$15. In Quebec, the equivalent is the RDPRM (Registre des droits personnels et réels mobiliers). Always search before handing over any money.

Question 2

Should I get an inspection before buying a used car privately?

Accepted Answer

Yes. Hire an independent mechanic — not one recommended by the seller — for a pre-purchase inspection (PPI). A PPI typically costs $100–$200 and can reveal thousands of dollars of hidden problems. Ask the seller if you can take the car to a mechanic of your choice. Refusal is a red flag.

Question 3

What documents should I get from the seller when buying a used car?

Accepted Answer

You need: a signed bill of sale, the vehicle registration certificate signed over to you, and a lien release if there was an outstanding loan. In Ontario, the seller is legally required to provide a Used Vehicle Information Package (UVIP). In BC, the seller must complete the APV9T transfer form with you. Keep all documents for your records.

Question 4

How much is transfer tax when buying a used car privately?

Accepted Answer

It depends on the province. Most provinces charge PST/RST on the sale price, but Ontario and some others charge on the higher of the sale price or the average wholesale book value. Alberta has no PST, making private car purchases cheaper there. BC charges PST at 12% for cars under $125,000. Pay the tax at your provincial registry when you register the vehicle.

Question 5

Can I drive the car home after buying it privately?

Accepted Answer

You need valid insurance before driving. Contact your insurer before completing the purchase — you can often bind coverage for the new vehicle quickly. You will also need to register the vehicle in your name within the period required by your province (typically 6–14 days). Drive directly home without stopping unnecessarily until the registration is transferred.

How to Buy a Car Privately in Canada

Protect yourself before you buy