Buying pre-owned car in Ontario, Canada
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Buying a used car is a great way to get a vehicle for much cheaper than a new vehicle. For most newcomers and students this might be the best option since they are usually tight on the budget. There are many quality and good condition used cars available in Greater Toronto Area. In this post, I will share my personal seven tips/steps to buy a used car.
Step 1: Do your homework
It is always a good idea to plan before start looking for used vehicles that are for sale. This will help you to make the rest of the process much easier. This includes you to make a list of your preferred cars and setting the budget. Do not forget to keep some money aside for safety certificate, transferring ownership and buying license plate sticker.
Other things to cover: –
Type of car – hybrid vs electronic vs gas. Depending on budget e-car might not be an ideal option.
Reliability – I have personally noticed that Honda, Nissan, and Toyota usually have better reliability than brands.
Cost of insurance – Most car with modern safety and anti-theft features tend have to slightly cheaper insurance.
Fuel efficiency – This is self explanatory, cars with smaller size will have better fuel efficiency.
Step 2: Do Research
If you have time, try reading reviews about the model and year of the car that you planning to buy. This will help you learn about features and also some known issue that specific model might have.
Step 3: Searching for car
In Canada, there are several resources available to search for your preferred car. Most common ones are dealer websites and some 3rd party such Kijiji, Facebook marketplace, AutoTrader.ca etc. Buying directly from private buyer might interest most new immigrants.
Step 4: Connecting seller and book a test drive
Once you have found a vehicle in your search that fits your needs and your budget, you can contact the seller and arrange to see it in person. This is your opportunity to inspect the car, validating the documents and ask seller about the history of the car.
Take a car for test drive. Always turn off the music and listen for sounds carefully. Test the brakes. Open the bonnet and inspect for any signs of oil leakage.
In case if you have any doubts, it is highly recommended to take the car to mechanic for further inspection. It might cost $50 to $100 for mechanic but will definitely saves hassle in long run.
Step 4: Review the legal Documents.
Ask to see the proper documentation for the vehicle to make sure everything is legitimate. Most important document is Used Vehicle Information Package (UVIP) which has it contains a description of a vehicle and its Ontario history.
Always remember to match the information on UVIP with advertisement.
Step 5: Buying car and paperwork.
If you are satisfied with the condition and documentation of the vehicle after inspection, you can begin the process to purchase it from the seller. This involves negotiating and paying an agreed price and making sure the proper paperwork is filled out and transferred.
Once the final price and payment method have been chosen, there is some final paperwork to fill out and documents to exchange.
- UVIP — the seller must give you the package after the sale has been completed
- Vehicle Permit — part of the Application for Transfer in the UVIP that the seller and buyer must sign
- Bill of Sale — seller must fill out their name with a signature, the date of purchase, and the selling price.
After completing above paperwork, take your car for Safety Standards Certificate (SSC). Once SSC is done, call your preferred insurance company to get a quote. These two documents will be required for next step.
Step 6: Registering car with ServiceOntario
You must register your name as the new owner of the vehicle within 6 days of the purchase.
To register the vehicle, you need to visit a ServiceOntario centre and bring the following:
- proof of insurance
- your Ontario Driver’s Licence
- used vehicle information package (UVIP)
- bill of Sale (you can use the bottom of the used vehicle information package, as there is a section specifically for this)
- Safety Standards Certificate (SSC), if applicable
- owner’s permit with the completed Application for Transfer portion on the back
- odometer reading information.
- Full legal ownership of the vehicle transfers to the buyer once the ownership is signed.
reference: https://www.ontario.ca/page/buy-or-sell-used-vehicle-ontario
Step 7: Congratulations on buying first car!
You have the car you wanted, you paid a reasonable amount for it, and you have full legal ownership to use it. Please remember to keep a copy of the pink slip from insurance company in car.
