Cousin is giving me his 2002 Elantra for free, what do I tell MTO?

Updated September 26, 2009

got an alignment done this morning, the manager told me that they would charge $75.99 but said that my car required an extra hour so $75.99 x 2 x 1.13 = Yikes!
but I know these guys are 100% honest, been going to them when I needed something major done. 2 techs worked feverishly for an hour straight and I have to say that they've done a good job pointing the wheels straight.





As for safety, I needed, 2 x rear drum cylinders, 2 x front lower ball joints. Which I'll do on my own.








Beginning

My cousin had been the sole driver for the car since new. The car was purchased by his dad and was under his dad's ownership until August when the ownership exchange took place. So my cousin spends $1000+ to emission & safety it (new windshield, 4 tires, alignment & miscellaneous..) and a couple of weeks later, the car started having some serious engine issues.

He made a couple of visits to a garage, they kept the car for a couple days at a time and when none of the repairs actually fixed the issue (he still paid for sensor replacements + labour), his frustration grew and in the end signed an agreement to finance a new Kia Soul he's been eyeing since it came out.

Here's the deal.

Before using an OBDII reader, all I was told was that the engine would be idling around 3000RPM and the brake pedal felt very firm and very ineffective during braking. When I connected the OBDII, it started spitting out codes.

P0123 - throttle position tp sensor circuit high voltage
P0121 - throttle pedal position sensor switch a circuit range performance problem
P0303 - cylinder 3 misfire detected

The shop told him that even with new plugs, the engine still developed misfire and suggested putting in a used engine. I did some online Hyundai forum searches and the most probable cause seems to be a blown intake manifold gasket. But I don't know that for sure nor do I want to pay the dealer $70+ just to hear that there's a problem for a car that he no longer wants. (but I want it and I already have my own car so I got time to play with this car. I'll try spraying some Carb Doctor in the area where the intake manifold and the head meet for a leak detection as suggested from forums)

Even if my cousin gives me the car, "cousins" do not qualify for PST exemption and he's busy so is it possible for me to go into an MTO office, buy a UVIP for my cousin to use to sell me his Elantra for $1 and I pay the PST based on the Black Book Value? or does he have to goto an MTO himself and buy a UVIP?


Car Description:

2002 Elantra Auto A/C No Powerlock
190,xxx kms
E-tested & Certified within the last 5 weeks.


Update
It was the intake manifold gasket. Paid $31 at the dealer for a new gasket, took off the old one, put the new one in and the car runs like new!

You can can say the car was for $1.

But if you get a investigation for it, you can explain it to them then.

It is not a big deal, I have had family members transfer cars within immediate families saying it was $1. It is no problem if it is immediate family, blood cousins or something. If someone in you family paid taxes once already you shouldn't have to pay again if its truly a gift. But if you actually made money from it then yes you have to pay the tax, again its all subject to an investigation.

Don't worry just go for the $1 dollar option, nothing will happen, MTO will give you the black book bs but they can't charge it without investigation. They will have to go with the $1 until a investigation is completed. Also if your truthful then theres nothing to worry about, since you didn't pay any money to your cousin.

Also the vehicle has to pass safety and emissions before it can be transferable.

You will have to pay PST on the black book value, not on the $1 value. Unless you can prove the car only worth $1. To prove this you need an assessment report from a professional appraiser.

First you get insurance for the car. The owner signs over the ownership, you take the ownership + safety + emission + insurance paper to MTO, buy the OVIP and pay the PST+license, get the plates, done.

Your cousin does not have to go there.

How about transferring it from owner ->parent->sibling (your parent)->you(son)!

haha

Originally Posted by DragonZealot

You will have to pay PST on the black book value, not on the $1 value. Unless you can prove the car only worth $1. To prove this you need an assessment report from a professional appraiser.

x2 doesn't matter what you "tell the MTO", they are still going to go by the book value.

However another thing you can do is, since the car seems to have some problems, is transfer the car as unfit (I think you may have to have a mechanic declare this for you?). Then do the repairs and re-certify it. If you buy the car as "unfit", you don't have to pay the same tax as if it were in certified condition at the time of purchase, because it's not valued as high.

Yes, you can write it down for $1

You will pay taxes on $1 dollar

Value for that car in the Black Book is $0

Also the vehicle has to pass safety

A car can be sold not certified .

Brent

fyi

Tax exemption
You do not have to pay retail sales tax if:

You are a qualifying Diplomat or Status Indian. You can complete a transfer by showing your identity card.
You receive a vehicle as a gift from a close family member, such as:
Spouse
Parent or step-parent
Grand-parent
Son or step-son
Daughter or step-daughter
Grandson or granddaughter
Step-grandson or Step-granddaughter
Son-in-law
Daughter-in-law
Father-in-law
Mother-in-law
Note: Only one tax-free transfer per vehicle is allowed every 12 months within your close family.

For some transfers, such as gifts between close family members (describe above), are sales tax exempt if a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario is provided when registering your vehicle at a ServiceOntario Driver and Vehicle Licence Issuing Office.


btw, if you write it down for $1, you will still have to pay for the redbook value of the car.

my dad bought a 96 maxima for 3000 but the redbook value was 6000, he paid the tax on the 6000


How are the wholesale and retails values determined?

For personal vehicles, these values are based on the average amounts paid for vehicles of the same year, make and model. The values do not take into account optional equipment, vehicle condition, or the number of kilometres. These values can change from the date you pick up the Used Vehicle Information Package to the date of the vehicle transfer.

For passenger and light commercial vehicles (2,200 kilograms and under empty weight) 20 years or older, the retail sales tax is payable on the purchase price, replacement value for insurance purposes, or appraised value, whichever is more.

If you paid less than the Canadian Red Book value, you can get the vehicle appraised before changing ownership. If the appraisal supports a lower price than the Canadian Red Book, the buyer pays tax based on the higher value.

An appraisal or insurance document showing the vehicle's value must accompany the bill of sale.

If the vehicle transfer and tax payment based on the average wholesale value have been processed at the Driver and Vehicle Licence Issuing Office, an appraisal and an application for a tax refund must be sent to the Ministry of Revenue. Appraisal forms are available from Driver and Vehicle Licence Issuing Offices and Ministry of Revenue offices.

Note: if you are buying a vehicle from a licensed motor vehicle dealer, you must pay the Retail Sales Tax and the Goods and Services Tax to the dealer. If you are buying a vehicle privately, you are not required to pay Goods and Services Tax.

Originally Posted by ES_Revenge

x2 doesn't matter what you "tell the MTO", they are still going to go by the book value.

However another thing you can do is, since the car seems to have some problems, is transfer the car as unfit (I think you may have to have a mechanic declare this for you?). Then do the repairs and re-certify it. If you buy the car as "unfit", you don't have to pay the same tax as if it were in certified condition at the time of purchase, because it's not valued as high.

yea this is the best method.


when i bought my car, the seller insisted of "doing me a favour" probably b/c he's scared of retribution if the car fails..

anyway, i paid tax for 1$ as it was a gift. black book value is probably 200-500$ for my 92 toyota.

Originally Posted by slowtyper

How about transferring it from owner ->parent->sibling (your parent)->you(son)!

haha

His mom is my dad's sister so that won't work unless the wives have a piece of the car their hubbys own even if the green ownership paper only shows the hubby's name? I'm not married so I don't know what the sharing rules are lol.

And also my cousin already received the car from his dad so the 12month gifting period has just begun.

Originally Posted by motomondo

Yes, you can write it down for $1

You will pay taxes on $1 dollar

Value for that car in the Black Book is $0

I wish I could pay a mere 8 cent tax, I'll toss them a quarter just for good measure.

My dad good buddies with an appraiser and the appraiser asked if my dad wanted the 2002 toyota camry appraised at 1k my dad said ok.
Book value was 7k
He had no problems.

Originally Posted by slowtyper

How about transferring it from owner ->parent->sibling (your parent)->you(son)!

haha

+1

i should have done that when i bought my nissan maxima from my brother in-law

brother in-law -> his wife (my sister) -> me (brother)... could have saved several hundreds ...

So today my cousin gave me the UVIP and his signed ownership paper

Is there a deadline to the UVIP that requires the new owner to takeover the ownership? my cousin just said that I need to get the car re-safetied since it's past the 36day safety certificate period. (It was safetied August 01/2009) So I didn't make the 36-day period. How soon do I need to get the car registered under my name before the UVIP expires?

found it, it is 30 days.

Originally Posted by Tomy

anyway, i paid tax for 1$ as it was a gift. black book value is probably 200-500$ for my 92 toyota.

Lol I always thought you drove an ITR (with that avatar).