Selling your car? Key items to include in an agreement of sale.

CAA Auto Advice June 30, 2020
Seller handing over the ignition key of a car to a buyer.

Selling one's own car can be rewarding and frustrating at the same time. On one hand, you’ll have the chance to make a few extra bucks compared to the amount offered on a trade-in at a dealership. On the other hand, you must deal with the seemingly never-ending stream of people coming to check out your vehicle; some of whom will undoubtedly waste your time.

But don't give up! Eventually you’ll find the right buyer who's willing to buy at a fair price. With that part of the transaction agreed upon, it's now up to you to prepare all the items required for a legally-binding agreement of sale.

The Used vehicle information package (UVIP).  

In Ontario, the private seller of a used vehicle is legally required to provide the buyer with a Used vehicle information package (UVIP).  While designed to protect the buyers’ rights, this package contains a lot of information that protects the seller too. Once completed, the documents in this package confirm all the details of the vehicle being sold including model year and engine size. There will also be a history of the vehicle's past registration, information on any liens and details for tax purposes. At the end is a bill of sale section for the seller to record their name, the buyer’s name and address, the date and purchase price.

Additionally, the seller will need to complete and sign an Application for Transfer.  You can find this on the back of your vehicle ownership permit. And don't forget to obtain a certificate that verifies the vehicle meets safety standards (if required).

Your license follows you, not the vehicle.

It's equally important to know what you don't need to include in an agreement of sale; namely, anything to do with the license plates. Those tags stay with the driver, not the car, so be sure to remove them before it goes off to a new home. The seller also keeps the "plate portion" of the vehicle permit. Remember, you’ll need this if you want to register those plates on another car or get a refund for any remaining time left on the registration stickers.

Lastly, before selling a used vehicle, be sure to run it through a car wash and take a few minutes to remove all of your personal items. 

CAA's team of Auto Advice experts provides members with free consultation and advice on a variety of automotive topics including valuable information when it comes to selling a used vehicle. Our team of Auto Advisors can also provide you with real-time car valuations to help you price your car appropriately. Give us a call at: 1-866-464-6448 or connect through email at: autoadvice@caasco.ca