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Buying Your Child’s First Car? What Parents and First-Time Buyers Need to Know 

August 5, 2025
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As the new school year approaches, many parents are helping their teens or post-secondary students shop for a used vehicle. Whether it’s for daily commutes, part-time jobs, or visits home, a car can be a big step toward independence. But for first-time buyers, the process can be overwhelming, especially when it comes to making a safe and informed choice. 

Here’s what you need to know to protect your child and your wallet when buying a used vehicle in Ontario. 

Start with a Registered Dealer

One of the safest decisions you can make is buying from a registered dealer. Ontario dealers and salespersons have to be registered with Ontario Motor Vehicle Industry Council (OMVIC) and must follow the strict rules set out in the Motor Vehicle Dealers Act (MVDA). 

Under this legislation, dealers are legally required to make written disclosures about a vehicle’s past use and condition, including: 

  • If the vehicle was previously a taxi, rental, or police vehicle. 
  • Any damage over $3,000. 
  • Whether the vehicle has a branded title (e.g., salvage or rebuilt). 
  • Accurate odometer readings. 

These disclosures must be in writing, not just mentioned verbally. Verbal assurances, no matter how friendly or convincing, are not legally binding and may not protect you if problems arise after the purchase. Insist that all key information, including any conditions like having the vehicle inspected and approved by a trusted mechanic before finalizing the sale, are clearly written in your contract or bill of sale. 

Buying Privately? Know What’s Required

If you choose to buy from a private seller, it’s important to understand that you will not be protected by the MVDA as you would with a registered dealer. However, private sellers are legally required to provide a Used Vehicle Information Package (UVIP). This package contains essential information, including the vehicle’s ownership history, lien details, and more. 

In addition, OMVIC strongly encourages buyers, whether purchasing from a dealer or a private seller, to obtain a vehicle history report, such as a Carfax or a Used Vehicle Information Package (UVIP). These reports can help identify previous accidents, insurance claims, unpaid liens, or other red flags the seller may not disclose. They’re a small investment that could save you from costly surprises down the road. 

Get an Expert Opinion

Whether you’re buying from a registered dealer or privately, before you finalize the purchase, have the vehicle inspected by a trusted mechanic. A professional inspection can reveal hidden issues and help you avoid buying a car that may need expensive repairs shortly after. 

Use the checklist below to shop smart this back-to-school season

  • Registered dealers – the MVDA only applies when buying from a registered dealer. Check to see if they are registered using OMVIC’s dealer search tool at OMVIC.ca.
  • Beware of curbsiders (illegal, unregistered sellers). These sellers often sell vehicles that are previous write-offs with undisclosed accident repairs and/or have an odometer that has been tampered with.
  • Ask for a Used Vehicle Information Package (UVIP) (mandatory for private sales).
  • Get a vehicle history report (e.g., CARFAX).
  • Check branding status (e.g., salvage, rebuilt) in UVIP or history report.
  • Check that the odometer reading makes sense for the vehicle’s age and condition. If the mileage seems unusually low compared to the wear and tear, it could be a sign of odometer tampering. The vehicle history report will also confirm the mileage of a vehicle.
  • Check for previous use – ask if it was a rental, taxi, or fleet vehicle. 
  • Request proof of repairs or service records. 
  • Have the vehicle inspected by a trusted mechanic before buying.
  • Take the vehicle for a test drive, and try it on a variety of roads, including local streets and highways, to get a full sense of how it handles.

Ensure you receive written disclosures for: 

  • Any previous use (e.g., daily rental, taxi). 
  • Accidents or damage over $3,000. 
  • Any structural damage or repairs. 
  • Out-of-province history. 
  • Lien status (ensure it’s clear of debt). 
  • Never pay in full before receiving the vehicle.
  • Avoid cash-only transactions – use traceable payment methods.  
  • Get a bill of sale in writing (include vehicle details, price, HST, buyer/seller info). 
  • Double-check all-in price if buying from a dealer — the price must include all fees except HST and licensing.