Grading Your Vehicle

  Explanation of Agreed Value 

  Buying and Selling a Used Car in Ontario

Please use the following information
as a guide to the condition of your vehicle.

Grading Your Vehicle

#1 Top Show Vehicle
Restored to current maximum professional standards of quality in every area, or maintains perfect original components operating and appearing as new. A 95-plus point show car that is not driven. In national show judging, a car in No.1 condition is likely to win top honours in its class. In a sense, it has ceased to be an automobile and has become an object of art. It is transported to shows in an enclosed trailer, and, when not being shown, it is stored in a climate-controlled facility. It is not driven. There are very few No.1 cars.

#2 Excellent
Well-restored, or a combination of superior restoration and excellent original. Also, an extremely well-maintained original showing very minimal wear. Except for the very closest inspection, a No. 2 vehicle may appear as a No. 1. The No. 2 vehicle will take the top award in many judged shows except when squared off against a No. 1 example in its own class. It may also be driven 800-1,000 miles each year to show, on tours, and simply for pleasure.


#3 Very Good
Completely operable original or "older restoration" showing wear. Also, a good amateur restoration, all presentable and serviceable inside and out. Plus combinations of well-done restoration and good operable components, or a partially restored car with all parts necessary to complete it and/or valuable NOS parts. This is a "20-footer." That is, from 20 feet away it may look perfect. But as we approach it, we begin to notice that the paint may be getting a little thin in spots from frequent washing and polishing. Looking inside we might detect some wear on the driver's seat, foot pedals and carpeting. The chrome trim, while still quite presentable, may have lost the sharp mirror-like reflective quality it had when new. All systems and equipment on the car are in good operating order. In general, most of the vehicles seen at car shows are No. 3s.

#4 Good
A drivable vehicle needing no, or only minor work to be functional. Also, a deteriorated restoration or a very poor amateur restoration. All components may need restoration to be "excellent," but the car is mostly useable "as is." This is a driver. It may be in the process of restoration or its owner may have big plans, but even from 20 feet away, there is no doubt that it needs a lot of help.

#5 Restorable
Needs complete restoration of body, chassis and interior. May or may not be running, but isn't weathered wrecked, and/or stripped to the point of being useful only for parts. This car needs everything. It may not be operable, but it is essentially all there and has only minor surface rust, if any rust at all. While presenting a real challenge to the restorer, it won't have him doing a lot of chasing for missing parts.


#6 Parts Car
May or may not be running, but is weathered, wrecked and/or stripped to the point of being useful primarily for parts. This is an incomplete or greatly deteriorated, perhaps rusty, vehicle that has value only as a parts donor for other restoration projects.


#7 Scrap
This vehicle does not drive. It may be worn out, rusted or smashed. It is deteriorated to the point  that the cost of the parts and labour required to restore this vehicle to highway standards is prohibitive. It would be better to crush this vehicle that to attempt to restore it.

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Explanation of "Agreed Value"

* Nobody ever wants to have a loss involving their "Special" vehicle, but unfortunately it does happen. There are a number of specialty insurance markets for both stock original, restored vehicles, as well as unique programs for customized vehicles and street rods. Most of these specialty programs provide direct damage coverage for your vehicle on an "Agreed" value basis using an endorsement known in the insurance industry as "Ontario Policy Change Form" (OPCF) "19A".

* Make sure that you specifically ask your insurance company about the "19A" endorsement and if they offer it. If they offer it you should consider taking advantage of it. ( It must be "19A", not 19 or any other letter or number before or after "19A).

* All of these specialty programs require vehicle owners provide, at the owner's cost, a current, professional evaluation report on the vehicle prior to the getting insurance coverage. 

* These evaluation reports should be updated every three to five years, or more frequently depending on market volatility, or when components have been added or upgraded. It is always recommended that if you are satisfied and pleased with the appraiser who completed your vehicle's first evaluation, you should return to that appraiser for the update.

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Information on Buying and Selling a Used Car in Ontario, Canada

According to Ontario law, private sellers of most cars, trucks, vans, self propelled motor homes and motorcycles must buy and give to potential buyers a Used Vehicle Information Package.

The Used Vehicle Information Package Includes:
* Description of the vehicle
* Ontario vehicle registration history
* Odometer information
* Outstanding debts (link to liens) on the vehicle
* Wholesale and retail values for the vehicle's model and year, if available
* Retail sales tax requirements
* Bill of sale
* Tips on vehicle safety standards inspections

When You Sell a Car in Ontario, the Seller Must:
* Buy a Used Vehicle Information Package.
* Read it carefully to make sure the information is correct.
* Show the Used Vehicle Information Package to any interested buyers.
* Keep your license plates and the “plate portion” of the vehicle registration permit once you sell your vehicle.

When the Seller Finds a Buyer, They Must:
* Record your name, signature, name of buyer, date and purchase price on the “Bill of Sale” in the Used Vehicle Information Package.
* Complete and sign the Application for Transfer. The Application for Transfer is on the back of the “vehicle portion” of the registration permit.
* Give the Used Vehicle Information Package and the “vehicle portion” of the registration permit to the buyer.
* Keep your license plates and the “plate portion” of the vehicle registration permit.  You will need the permit if you decide to register your license plates on another vehicle.

The Seller Retains his/Her Own License Plates:
* Ontario has a plate-to-owner registration system. This means the license plates stay with you, not the vehicle.
* Remove your plates and keep them for your next vehicle.
* Before you attach your plates to another vehicle, visit a Driver and Vehicle License Issuing Office to register the plates to the other vehicle.
* If you do not plan to get another vehicle you can return the plates and the plate permit to any Driver and Vehicle License Issuing Office for cancellation.
* If your plates have not expired, you can apply for a refund on any remaining full months of plate validation. There is a processing fee of $5.00 for each refund.

Information on Buying a Used Car, Truck or Motorcycle in Ontario:
* Even a well-made vehicle deteriorates if it is not properly maintained.
* Do not be blinded by the reputation of a particular make or model.
* Always inspect a vehicle in the daylight.
* Carefully check for extreme wear of the upholstery, seats, brake and accelerator pedals. New pedals may signal the car has had a lot of use.
* Look closely at the exterior. Waves on the body could mean bodywork or that the vehicle has been in an accident.
* Take it for a road test that includes driving at different speeds and on different road conditions. The test helps evaluate the steering, brakes, shock absorbers and front-end alignment.
* Ask about the vehicle’s accident history. If there have been accidents, get a written summary of the accident information.
* Ask for the Used Vehicle Information Package.
* Take the vehicle to your mechanic or to a diagnostic centre for a check-up before buying.
* Have an appraisal come and inspect the vehicle and give and independent opinion on the car or truck.

A Potential Buyer Should:
* Make sure the Vehicle Identification Number on the vehicle matches the Vehicle Identification Number on the vehicle permit
* Get the vehicle permit with the completed Application for Transfer from the seller.
* Get the “Bill of Sale” from the seller.
* Make sure the seller fills out their name and signature, date, and purchase price.
* Bring the plate portion of the vehicle permit. (if you are attaching your plate to the vehicle)
* Ask to see the Used Vehicle Information Package. If you buy the vehicle, make sure the seller gives you the package.
* Have an appraisal come and inspect the vehicle and give and independent opinion on the car or truck.

OK, I Bought a Used Car or Truck, Now What?
* As the new owner, you must register your used vehicle within six days of the sale. Here is how:
* Bring the Used Vehicle Information Package and the vehicle permit with the completed Application for Transfer to a Driver and Vehicle Issuing Office
* Pay the retail sales tax.  At the time of the transfer, the Driver and Vehicle License Issuing Office collects the tax. The amount of tax is based on the purchase price or the wholesale value, whichever is greater
* Pay the licensing / fees for plates and permit
* Present proof of insurance (if you are going to put plates on the vehicle).
* Get a Safety standards certificate if the vehicle will be plated and operated on the roads.  This is not required for trailers or mopeds or off-road vehicles or snowmobiles.
* If your vehicle is registered, plated and in the Drive Clean program, show the vehicle emissions report. To find out if your vehicle needs to pass an emissions test, call the Ministry of the Environment’s Drive Clean Call Centre toll free: 1-888-758-2999.
* If this is the first time you have registered a plate or vehicle with this ministry, present proof of identify (verifying legal name, date of birth and signature).
* If you are registering plates that you already have, bring the plate portion of your vehicle permit with you to the Driver and Vehicle Issuing Office

A Note on Car Insurance:
You must have motor vehicle insurance to legally drive in Ontario. Whether you are attaching plates, renewing registration or buying a temporary permit, you must have insurance. Private companies sell insurance. You must have third party liability insurance of at least $200,000. This covers you in case you injure or kill someone or damage someone’s property. Collision insurance to cover the damage to your own vehicle is a good idea, but not required by law. Yes. You must carry the pink insurance card for the vehicle that you are driving (this includes your own or someone else’s vehicle). You must show this card when a police officer asks for it. If you do not, you can receive a fine of up to $400. When driving someone else's vehicle, make sure the insurance covers you as a driver.

The information on this page is provided as a guide to persons buying or selling a car in Ontario.
Questions? Call the Driver and Vehicle Licensing Call Centre directly at: 
Toronto Area: 416-235-2999
Toll Free: 1-800-387-3445
or visit their website at this link:
 http://www.mto.gov.on.ca/english/dandv/vehicle/used.htm
Please visit that website for updates to the policies from the MTO.

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