Everything You Need To Know About Vehicle Ownership In Ontario
Owning a car in Ontario can be pretty convenient. It helps you get to work or school a lot quicker. However, it brings along a lot of responsibilities as well.
Buying and selling vehicles is very common, and it is undoubtedly a lengthy process. Moreover, if a used vehicle is in question, there is the ownership transfer as well. Many people get confused when it comes to paperwork, registration, and insurance. All of this usually calls for unnecessary costs! This article will discuss different aspects of car ownership, so make sure to stick around and learn more on this topic!
However, if you need any additional information or assistance, surex.com/Insurance/auto-car/toronto is the place to visit!
What is Vehicle Ownership?
Before we discuss the aspects of vehicle ownership in Ontario, we need to understand what that actually means. Every owner must receive a green paper, which is actually the permit. The permit signifies that the vehicle is now in that individual’s possession.
There are two ways to obtain this permit:
1. Buy your car from a dealership
2. Transfer the ownership from another owner to yourself.
The permit contains certain information about you and the vehicle. For example, your name and address, the model of your car, the number of your license plate, and the vehicle identification number (VIN.)
You must have this piece of paper with you at all times while driving. There might be severe consequences if you get pulled over, and you do not have a permit to provide to the officers.
Remember that if you purchase a used vehicle from another owner, both you and the seller are responsible for transferring the ownership. Once you do that, the car will legally be yours!
Vehicle Registration
Many people think of ownership and registration as interchangeable. However, that’s not the case. Vehicle ownership means that you have purchased a vehicle, and it now belongs to you. On the other hand, vehicle registration serves to make a connection between the car and the owner. This information might be used to detect potential criminal acts or for taxation.
Once you register your vehicle, the authorities will be able to identify it based on the engine number and chassis. You will receive a registration card that you must provide to the officers whenever they ask for it. Driving an unregistered vehicle in Ontario is illegal, so always make sure to register your car on time!
When you purchase a vehicle through a dealership, they generally do the registration process for you. However, if you buy a used car with a previous owner, the registration will be your responsibility.
Car registration is an annual obligation in most countries. You have to pay a particular amount of money, which is determined based on different factors. For example, the model of your car, accidents in the previous year, and so on.
In most countries, you will be issued a new sticker every time you register your car. This sticker must be put on your vehicle so that the officers can see whether your car is registered or not!
Leasing Vs. Ownership
There is a huge difference between leasing a vehicle and owning it. When you own a car, it means that you have already paid for its entire value. It is entirely yours, and you are allowed to drive it when and however you please.
On the other hand, getting a lease on a car means that you are only paying for one part of its overall value. That part is for the period that you choose to drive it.
Furthermore, a lease comes with a lot of restrictions as well. You will not be able to change or customize anything on the vehicle, and you must be extremely careful with it. If you wish to have more freedom, buying a car might be a better solution for you!
What About the Cost?
Buying a car is one of the most expensive purchases you will make in your lifetime. However, it won’t be the only bill you have to pay for your vehicle. Unfortunately, owning a car can be quite expensive. You have to pay for gas, repair costs, registration, and so on.
Generally, the ownership permit costs less than $30, but the purchase itself can be pricey. Still, instead of spending money on a cheap vehicle that will break down all the time, consider buying a vehicle that will not constantly be at the mechanics. This will help you save repair costs that can be pretty high sometimes. It is better to spend that extra grand and get a high-quality car than to waste a ton of money to fix a lower-priced one.
Another thing to keep in mind is that the longer you drive your car, the more it depreciates. Therefore, make sure to purchase a vehicle with a good resale value so that you can sell it for a decent amount later on.
Also, you should know that large vehicles are generally more expensive to purchase and maintain. Try to avoid them if you’re looking for an affordable purchase! And finally, note that owning a vehicle brings along new taxes. Depending on where you live and the vehicle you own, they can either be higher or lower.
Vehicle Ownership Transfer
If you decide to purchase a used vehicle, you and the previous owner will have to transfer the ownership from the seller to the buyer! Basically, the buyer’s name will replace the previous owner’s name on the permit. This process requires filling in a lot of paperwork, handing in all necessary documents, etc.
You must transfer the ownership to the new owner within the first 14 days of possessing the car. Not changing the ownership permit can result in legal consequences for the seller.
Every time the new buyer violates the traffic rules, the person whose name is on the permit will be blamed. Therefore, please do the paperwork and transfer the ownership as soon as you can!
Endnote
Owning a vehicle involves a lot of work, irrespective of whether you’re buying a used or a new car. Furthermore, it is not all about the initial purchase. Having a car means that you have to maintain, register, and insure it as well. All of this can be pretty pricey.
Remember that if you buy a used car, you need to transfer the ownership if you want to be the official owner. Be responsible and finish every part of the process on time!