Free Prince Edward Island Used Car Bill of Sale
PEI's used-car regime packs two firm rules into Canada's smallest province. The car must pass a Motor Vehicle Inspection (MVI) in the seller's name, or be sold marked "SOLD NOT INSPECTED" — without a valid sticker the buyer simply can't register. And the 15% Retail Sales Tax (RST) is assessed on the greater of the price or the Red Book wholesale value. Together they mean the safety gate is the seller's job and a low price does not lower the tax. The buyer's remaining work: the PEI PPSA lien search, CARFAX Canada for bridge-crossing history, and an odometer check — then Access PEI processes the transfer within 7 days.
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Prince Edward Island Used Car Bill of Sale — What You Need to Know
Tax Details
PEI taxes the used-car deal at 15% Retail Sales Tax (RST), not HST, on the greater of the declared price or the Red Book average wholesale value — so a bargain below book is taxed on the book value unless a written appraisal shows less.
Exemption: A used car passing to a listed family member is taxed only on the price actually paid, which can be $0, with the sworn family-transfer statement.
Inspection Requirements
The MVI is the used-car buyer's non-negotiable: done in the seller's name at an official Island station and currently valid before money moves — because without a valid sticker, registration is simply unavailable. A permit marked "SOLD NOT INSPECTED" means the buyer must get it inspected first.
Prince Edward Island Used Car Sale — Step-by-Step Checklist
- Ask for a current MVI in the seller's name — registration is impossible without a valid sticker, and a "SOLD NOT INSPECTED" permit moves the inspection cost to you.
- Record the true price — PEI taxes it or the Red Book value, whichever is higher.
- Run the PEI PPSA lien search.
- Pull a CARFAX Canada report — mainland vehicles cross the bridge constantly.
- Complete the transfer at Access PEI within 7 days.
Common Pitfalls
- Accepting "the MVI is basically done" — no valid sticker, no registration; make it a closing condition.
- Inventing a low price — PEI taxes the Red Book value anyway when it is higher.
- Skipping the lien search on island stock — financing follows vehicles over the bridge.
- Ignoring rust on a coastal-province car.
Pro Tip
PEI used cars: the seller owes you the MVI or a "SOLD NOT INSPECTED" permit, the tax follows the price or the book value, whichever is higher — your job is liens, history, and rust.