Individuals living in Quebec have some good opportunities to buy a new or used vehicle. Like those in Ontario do. The question often arises as to whether there is any difference between these provinces. When one is doing this.

Buying a Car in Quebec

rules

There are options to buy a new vehicle in Quebec. There is also an option to buy a used vehicle in this province. This comes with choices of buying a used vehicle from a dealership. Or, buying the vehicle from a private seller. Either way, there are going to be some rules to follow.

Applicable Taxes

No matter who the source is that a vehicle is bought from there are going to be taxes payable in Quebec. Often buyers buy a vehicle at the retail price. Then the taxes that get paid to the Société de l’assurance automobile du Québec.

Sometimes the buyer does not register the vehicle right away. Even afterthought they have received the vehicle. They need to do this within fifteen days after the vehicle gets delivered. They need to address the tax issue. The law determines that the QST payable on the vehicle is due at the time the vehicle gets delivered. This means the buyer must pay this tax to Revenu Québec.

Dealer Sales

It is up to the dealer to determine what the QST is going to amount to. There is a formula they must use for this. First, they must look at the price the car is being sold for. Then they must determine what the value of the vehicle is by estimating this. Then whichever figure is higher this becomes the taxable amount. Now it is up to the buyer to pay this amount of tax which is the QST when they go to register the vehicle.

Private Sales

Sometimes individuals buy used vehicles from another individual rather than through a dealer. There is still tax that needs calculating. The seller has to show the price they are selling the vehicle for. Then they must present an estimated value. The higher of the two prices will dictate what the tax is going to get applied to. This is the QST at a 9.75%. The one break the buyer is getting here by buying a car this way is that they are not going to have to pay the GST.

Sales between Related Individuals

Sometimes family with sell a used vehicle to another family member. They will still have to pay QST on this. The tax gets paid on the price that’s agreed upon for the sale of the vehicle.

Registering a Vehicle Bought In Quebec

Purchased

Purchased From Dealer

Anyone driving their vehicle on Quebec roads must have the vehicle registered. With the SAAQ. Many individuals buy a new or used vehicle from a dealer. Then the seller will look after registering the vehicle.

Purchased from a Private Individual

In Quebec, both the buyer and the seller are required to attend the SAAQ service outlet. To complete the sale and registration of the vehicle getting sold. There are some important things to keep in mind when doing this.

  • The vehicle registration cannot get completed if either the one selling the car or the one buying has any unpaid fines. Which includes those under the Highway Safety Code. Or even if it is a traffic or parking ticket.
  • The vehicle also cannot get registered if there is damage to it from flooding.
  • It also cannot get registered for road use if the vehicle has been in storage for a year or longer.

The next step in the registration process is producing the following…

  • Driver’s licence or official photo ID for both buyer and seller.
  • Those under 18 have to have the proper consent form filled out by their parents.
  • Sometimes the individual buying the vehicle cannot go to get the vehicle registered. The individual doing it for them will have to provide power of attorney.
  • Payment will need to get made for the QST and the registration fee.
  • Proper insurance has to be in place. Which is the civil liability insurance that provides no less than $50,000. in coverage.

Buying a Used Car in Ontario

Much of the process of buying a used car in Ontario is similar to Quebec. Although there are some differences. Both seller and the buyer have some responsibilities.

The Seller

The seller has to provide the buyer with a Used Vehicle Information Package. This is not required in Quebec. But in Quebec, the seller has to go with the buyer to transfer and register the vehicle.

The seller also has to fully complete the Used Vehicle Information package. Then also has to fill out and sign the application for transfer.

Next, the seller has to be sure to take their licence plates off the vehicle that has been sold.

The Buyer

Has to receive and review all the information. That which is in the Used Vehicle Information Package.

The buyer has to confirm the testing history for the vehicle’s emission testing. Only if the vehicle is seven years or older.

Obtain the permit for the vehicle and get the application for transfer. Making sure this has been properly filled out and signed by the seller.

The buyer also needs the bill of sale.

Often the buyer is going to be putting plates on the vehicle. They also need the portion of the vehicle registration permit. That pertains to this.

The buyer has to register the vehicle within six days of the purchase.

Registering the Vehicle

registering

There are several documents that must be presented at the time of registration which are..

  • The completed owners permit
  • A safety standards certificate
  • The bill of sale
  • The Used Vehicle Info Package
  • Your driver’s licence
  • Proof of Insurance

Just like in Quebec the applicable taxes have to get paid. For Ontario buyers, it will be the RST if they are buying the vehicle from a private seller.

It is important that individuals buying vehicles in Quebec or Ontario understand the rules that pertain to each province.

Resources

https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/special-cases-gsthst-and-qst/transportation/road-vehicles/purchases-of-new-or-used-road-vehicles/
https://saaq.gouv.qc.ca/en/vehicle-registration/registering-vehicle/automobile-or-motor-home/car-or-motor-home-sold-between-individuals/
http://www.cbc.ca/news/canada/montreal/buying-a-used-car-tips-on-how-to-avoid-costly-mistakes-1.4296883
http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml#liens
https://www.ontario.ca/page/buy-or-sell-used-vehicle-ontario