One application. 5 lenders from our 50+ network. Funded in 24 to 48 hours.
Apply Now One application routed to where you qualify.
Every Apply button starts the same single application. Your chosen lender is prioritized first.
The purchase price is not the total. Tax is payable at registration rather than to the seller, and it is assessed differently depending on the province.
| Alberta and the territories | No provincial sales tax on vehicles. A private purchase is tax free. |
| Ontario | 13% RST on the greater of price paid or wholesale value, so a low negotiated price does not lower the tax. |
| British Columbia | PST only, no GST on private sales, and the rate rises with the vehicle's value. |
| Quebec | 9.975% QST on the higher of estimated value or price paid. No GST on private sales. |
| Saskatchewan | 6% PST, with an exemption available for some personal and farm use purchases. |
| Atlantic provinces | 15% provincial vehicle tax at registration. |
The lender's security is the vehicle, and a private sale removes the dealer's role in verifying and delivering it. Three things follow.
Fewer lenders participate. Not every auto lender will finance a private purchase, and the ones that do apply additional conditions.
Rates are generally higher than the equivalent dealer transaction.
The lender inspects more. Expect a mechanical inspection requirement, a lien search, and verification of the seller's ownership.
Against that, private sale prices are typically well below dealer retail, which frequently more than covers the rate difference.
In Canada a lien follows the vehicle, not the seller. Buying a car with an outstanding loan against it means the lienholder can recover the vehicle from you even though you paid the seller in full.
Run a provincial lien search before any money moves. In Ontario that is a UCC search, and other provinces have equivalents. It costs a small fee and it is the single most important protection in a private purchase.
Your lender will do its own search. Do not rely on it as your protection, because by then you may be committed.
Provincial transfer requirements differ, and the buyer generally pays tax on the greater of the sale price or the wholesale value.
Yes, through lenders that accept private-sale transactions, generally with a mechanical inspection and a lien search required before funding.
A provincial lien search on the VIN, before any money moves. A lien follows the vehicle, not the seller.
Generally yes, though the lower purchase price frequently more than offsets the difference.
In most cases, yes. It protects both parties and confirms the lien discharge.
