How to Gift Someone a Car in Ontario
There are a few times in life when someone really feels truly free. As kids, a common stand out moment of freedom is when someone gives you your first bike. You realize you can now travel farther and faster than ever and have the means to go where you want (within reason). What’s even better is when someone gives you a car. With the open road in front of you, there are so many places to go and so many people to meet or reconnect with.
If you’re feeling generous with a car you find yourself not needing, and you’d like to give someone the gift of a car in Ontario, it’s not as simple as just handing over the keys. Good news is, we’ve built you a guide on how to gift a car in Ontario and how you can spare the recipient from having to pay the Required Sales Tax (RST) based on the car’s value in the Canadian Red Book.
Who Can Receive a Car Free of RST in Ontario
The list generally involves relatives like siblings, parents, children, grandchildren, a spouse, step-parents -grandparents, -children, and -grandchildren.
Here's how you do it.
First, pay off the car. It’s important to note, someone can’t take over the payments for you.
Arrange auto insurance for the recipient. You can’t transfer the car without proof of insurance in the name of the recipient.
Complete a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario. Both you and the recipient must sign the form in front of a lawyer or notary public to make it official and legal.
Find your Vehicle Ownership Permit.This is the green piece of paper you probably left at the bottom of your glove box. Look at the bottom to find the transfer portion and bring it with you to a Service Ontario office near you.
Obtain a Safety Certificate. The car you give someone must meet minimum safety standards. You can acquire this document by having the vehicle inspected at any mechanic that is licensed as an inspector by the Ministry of Transportation Ontario.
Interestingly, such an inspection isn’t required if you give a car to your spouse. You both just have to complete the Spousal Declaration Form.
Complete the plate transfer declaration. This document is formally titled the Spouse Declaration and/or Plate Transfer Declaration. Download it, fill it out, and then take it with you to Service Ontario.
Go to Service Ontario to Complete the Transfer. This is where a little money may be involved. You’ll need to pay for a permit and collect your new license plate sticker.
When visiting a Service Ontario, you will need to show the attendant:
- Your Driver’s License.
- The Driver’s License for the person receiving the car.
- Proof of insurance for the recipient.
- Your Sworn Statement of Family Gift Form signed by both you and the recipient, and notarized.
- The transfer portion of your Vehicle Ownership Permit.
- The Safety Standards Certificate or Spousal Declaration Form.
- Your Completed Plate Transfer Declaration.
Or Skip the Hassle and Sell Your Car Online
If all this leg work has made you feel overwhelmed, you can always sell your car fast, safe and easy to CashforCars.ca. You just fill out our offer form or get an offer by phone by calling 800-261-9854. We’ll pick up your car in 24 to 48 hours, take care of all the paperwork and complete the title transfer. Leaving you the time decide what you’ll do with that extra space in the driveway and the money you’ll get as soon as we pick up the car.
