Where should you buy a car: dealer, private seller or auction?

A licensed dealer is regulated, while a private sale or an auction needs more checking from you. In every case, check the vehicle’s history and any liens before you pay.

1. In Ontario, buy from a dealer registered with OMVIC (the vehicle sales regulator). A registered dealer has mandatory disclosure duties, and a compensation fund protects you if something goes wrong.
2. In B.C., the VSA (Vehicle Sales Authority) regulates licensed dealers. In other provinces, ask which body regulates dealers before you buy.
3. In a private sale, watch out for a curbsider (an unlicensed dealer posing as a private seller). Buyers from a curbsider are not protected by OMVIC, so if a problem appears you are on your own.
4. Ask for the VIN (vehicle identification number) and get a vehicle history report before agreeing a price. In Ontario, a private seller must give you a UVIP.
5. Search your province’s personal property registry by VIN for liens. Do not buy until the seller clears the lien and proves it in writing, so you do not pay for a car that still carries a debt.
6. If you want a government auction, GCSurplus sells vehicles to the public and only registered users can bid. Read the sale terms carefully before bidding, because a bid is a commitment.

Caution: Once you sign the contract you are bound by its terms, and the dealer may keep your deposit if you change your mind.

Bottom line: A licensed dealer is regulated, while a private sale or an auction needs more checking from you. In every case, check the vehicle’s history and any liens before you pay.

Last reviewed: 29 September 2026