Ready to join the ranks of Canadian drivers cruising around in their own sweet rides? As a reader of WorkLiveInCanada.com , you already know that buying a car is a milestone event when immigrating to Canada.
But where do you start when it comes to shopping, purchasing, registering, and insuring a shiny new (or used) vehicle? Don’t worry, we are here to help you
Whether you need a trusty SUV for Canadian winters or a fun sporty coupe for weekend getaways, this comprehensive guide by WorkLiveInCanada.com will equip you with everything needed to buy and insure a car in Canada.
You’ll be behind the wheel and road tripping in no time once you know the scoop on budgeting, dealer negotiations, required paperwork, insurance coverage and more. Hit the open road with confidence once we cover all the key steps new Canadian drivers need to take.
Finding the Right Car
When shopping for a car in Canada, consider these factors:
Budget – Determine how much you can afford to spend by considering the purchase price, insurance, gas, maintenance, and financing costs if needing a loan.
New or Used – New cars have latest features and tech but higher prices. Used cars are cheaper but inspect carefully for problems.
Type – Choose a body type (sedan, SUV, truck, etc.) and features that suit your needs.
Fuel efficiency – Compare fuel economy ratings when choosing models to save on gas costs. Hybrid/electric cars have lower emissions.
Safety ratings – Pick models with high safety scores to better protect passengers in a crash.
Test drives – Test drive your top choices to assess comfort, performance, and fit. Bring along a mechanic for used cars.
Inspections – For used vehicles, have a certified mechanic inspect prior to purchase to identify any issues.
Research reviews – Read expert evaluations and owner reviews to identify the most reliable models.
Ask about incentives – Enquire about any rebates, low financing offers, or lease deals available from the dealer.
How to Buy a Car in Canada
Follow these steps when buying a car in Canada:
- Select the car model and trim that meets your needs and budget.
- Confirm pricing and availability at local dealers. Consider shopping outside your area to save money.
- Get pre-approved for auto financing so you can negotiate from a position of strength.
- Test drive the vehicle and bring to your mechanic for inspection before purchase.
- Negotiate the final price including any extras like winter tires, roof rack, etc.
- Review and understand the purchase contract thoroughly before signing.
- Submit required paperwork like driver’s license, insurance certificate, registration fees.
- Pay applicable taxes and fees such as GST/HST, PST, A/C tax, tire tax, air conditioning levy, etc. Rates vary by province.
- Register the vehicle and transfer ownership into your name.
Getting Car Insurance
Buying insurance is required before driving off the dealer’s lot. Here’s how to get covered:
- Compare quotes – Get quotes from at least 3 insurance providers. Rates can vary widely between companies.
- Consider coverage needs – Think about how much liability, collision, comprehensive etc that you need.
- Pick deductibles – Higher deductibles lower premiums but keep them affordable.
- Add extras as needed – Consider ridesharing coverage, rental reimbursement etc. if needed.
- Check discounts – Ask about multi-policy, safety feature, alumni, telematics discounts.
- Provide required documentation – Have driver’s license, vehicle registration, purchase bill, and other proofs ready.
- List all household drivers – Insurance must cover regular drivers of the vehicle.
- Pay annually – Annual premiums are cheaper than monthly installments.
- Review policy – Understand covered risks, limitations, deductibles before paying.
With research and comparison shopping, you can find the right car and get it properly insured before driving in Canada. This ensures you comply with legal requirements and have financial protection on the road.
