How do I check which vehicles a tour operator really owns versus leases?
Request a list of every vehicle with its registration, ownership papers and any lease or loan agreement. Then confirm the details against the documents themselves, not the seller’s memory, and ask whether any vehicle is registered to a person, a related company or a lender.
Begin with a simple schedule. Ask the seller to list each vehicle, its year, its make, who holds ownership and how it is financed. Request copies of registration documents, lease agreements and loan statements. Check that the names on the papers match the business you are buying.
Look for surprises. A vehicle may be registered to the owner personally, to a related company or to a lender with a claim on it. Ask your lawyer to search for security interests, so you know whether a vehicle is free of claims. Ask what happens to leases when the business changes hands, and whether the lessor must consent.
Next, think about condition and use. Request maintenance logs and inspection records, and ask how many vehicles are in daily service. A fleet that looks large on paper may include units that rarely run. Finally, compare the schedule with the financial statements. Leased vehicles should appear as costs, and owned ones as assets. If something does not match, ask why. The inventory guide describes how assets are listed. Ask the seller which vehicles they would replace first and how that is planned, so you see what future spending is already expected.
Key takeaways
- Match every vehicle to its registration, lease or loan papers.
- Have a lawyer search for claims against owned vehicles.
- Ask which leases need the lessor’s consent when ownership changes.
Related reading
15 pages on the same subject.
Buying
- Expert answerHow do I check what diagnostic equipment a vet clinic owns versus leases?
- Expert answerHow do I check an electrical contractor’s commercial versus residential job mix?
- Expert answerHow do I check how many massage therapists at a clinic work as contractors versus staff?
- Expert answerHow do I verify a jewellery store’s consigned versus owned inventory?
- GuideWhat changes legally and in due diligence when buying an existing franchise location versus opening a new one in Canada?
- Expert answerDo contracts and leases transfer to me in an asset purchase?
- Expert answerHow do I check a used car lot’s inventory records against the vehicles on site?
- Expert answerHow do I tell if a body shop is equipped for newer vehicles?
- Expert answerHow do I transfer vehicles and their insurance when I buy a business in Ontario?
- Expert answerWhat happens to customer vehicles in the shop when a garage is sold?
- Expert answerWhat supplies and vehicles come with a maid service?
- Expert answerHow do I find out which tour operators send a charter bus company its work?
- Expert answerHow do I check a caterer’s delivery vehicles and hot-holding equipment?
- Expert answerWhat should I check about a security company’s patrol vehicles and radios?
- Expert answerHow do I check the rooms and adjusting stations at a chiropractic clinic during a tour?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.