Buying a used car from relative in BC

[FraserB]

So I need some pointers on buying my sister's car from her.

Car is currently registered in BC, but she is going overseas for school and wants me to sell it for her as my parents don't know a ton about cars. I figured it would be easier to have her sell it to me for $1 next week when she's home, I get the OPI done and then sell it in Alberta. Then just wire her the money, minus any costs for selling.

Now, when I look at the web, it appears that I would have to pay tax on this if she gifted it to me or provide a reason why it's being sold below market value. There also seems to be some BS stipulation that paperwork needs to be handed in at some BC government office?

Any ways to get around all this?

[Sugarphreak]

...

[mrsingh]

The tax is paid in BC if you register it there. I brought my 4Runner from there last year, it had been registered to my uncle since it was new. I got a transportation permit issued and filled out a bill of sale. I used that to drive the vehicle back and registered it in AB with the old BC registration forms and the bill of sale, after it had its OPP.

You can call ICBC and explain what you are trying to do - family member gifting the car to you, and they will tell you how to get around the tax issue.

[FraserB]

She's using it to bring stuff back here. I guess she could re-register it in Alberta, then sell it to me.

[mrsingh]

If it is going to be here, have her write up a bill of sale and go with you to the registry. Then you can the avoid her paying registration costs and then you having to do the same again. Check with the registry on the rules around this though, you will still need an OPP of course, but you should be able to bypass ICBC this way. I believe that after this is complete, she will just need to inform ICBC that the car is sold out here and return their plates.

[FraserB]

^ Yeah, that's basically what we're going to do. She'll drive it back, get the OPI, registration and insurance set up, then sell it to me. ICBC wants the plates and proof or registration and insurance, then they apparently reimburse for any unused portion of insurance.

[clem24]

Why even bother with the $1 bit? Just write up a bill of sale with fair market value and signed by both parties. No cash needs to change hands.

The only real problem I see with this is that this transaction becomes shady for the next buyer registering it under you name will mean it shows up on searches.

[edit]Might even be simpler than that.

In BC, you can apply to exempt PST if re-registering in BC if the car is gifted from a related individual:

www.sbr.gov.bc.ca/documents_library/forms/0319fill.pdf

But since it's coming to AB with no PST, you probably just need a gift letter (i.e. notarized letter from your sister stating she gifted the car to you, you take it and register it, done).

http://www.registryexpressinc.ca/vehicle-registration.html