How to Buy a New Car in Canada

Provincial laws in Canada governing the buying and selling of cars are slightly more stringent than similar laws in the United States. Potential buyers must understand the legal and consumer process to get the best deal on a new car while simultaneously navigating federal and provincial laws.

Instructions

1

Research the new car that you plan to buy in Canada. Choose a vehicle that meets your personal or family needs. Use information from consumer advocate and research groups, such as the Consumer Union (publishers of "Consumer Reports" magazine), which rates cars on factors such as comfort, handling, safety features and fuel economy. Other third-party companies, such as Edmunds and JD Power, review new car models and award those that meet their standards.

2

Calculate a budget for your new car. If you are a U.S. resident purchasing a car in Canada, you may be able to save a significant amount of money off the car's sticker price due to the currency exchange rate and the strength of the U.S. dollar. Also, determine whether you will need financing. Various Canadian banks, including the Royal Bank of Canada and the Bank of Montreal (see Resources), offer car loans to Canadian citizens. If you are a U.S. citizen, you will not be able to procure financing from a Canadian financial institution and should instead contact the U.S. lending institution of your choice.

3

Visit a Canadian car dealership in person. Prepare to do a lot of legwork because Canada, unlike the United States, does not allow vehicles to be purchased via the Internet. Locate the car model of your choice and test drive it to ensure that it is the right car for you. Pay attention to the way the car responds to your driving habits, as well as how it feels when driven in differing circumstances (e.g., in city traffic versus out on an open road). Note important factors such as how easily the car brakes or turns and how well insulated it is from road noise.

4

Ask that the "buyer's right to cancel" is included in your contract agreement with the Canadian car dealership when you do purchase a car. Canadian law does not require this, though most dealerships will include it if you request it. This allows you to return the car should you change your mind about the vehicle shortly after purchasing it.

5

Purchase auto insurance. Canadian federal law requires that all car owners purchase car insurance. Most major insurance firms, such as TD Trust (see Resources), sell affordable Canadian car insurance.

6

Keep all receipts, contracts and vehicle identification numbers (VIN) in case you want to sell your car in the future. Most Canadian provinces, including Ontario and British Columbia, require car owners to provide a provincial vehicle package to prospective buyers that includes such information.