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When individuals are buying a car in Ontario, there are various costs that they are going to have to deal with. The fees when buying a car in this province are going to vary. Depending on how one buys their vehicle and whether it is new or used.

What are Licensing Fees When Buying a Car?

Buying a Car

When you are looking at licencing fees, it means that you need to pay to register and licence your vehicle. To drive it in Ontario. The cost is going to depend on whether you are registering a new or used vehicle.

How Much Does It Cost to Register a Car in Ontario?

For those that are buying new vehicles from a dealer, the costs of registering the vehicle are normally included in this. It means they will take care of the vehicle registration for you. If they don’t offer this service, then you will be responsible for registering the vehicle yourself.  For a new registration, you will have to pay for the registration. As well as your licence plates and your sticker. The fees can change at any time. Currently, they are at:

  • For the Vehicle permit $32.
  • If you need a new licence plate as well as the permit you will pay $59.
  • Then if you are just renewing your registration all you will need is a new licence plate sticker. The cost will depend on where you live in Ontario. If you are in Northern Ontario, you will pay $60. In Southern Ontario, it is double the price at $120.

All these prices can vary depending on the type of vehicle getting registered.

The Tax

Then in addition to this, there may be RST on top of this at the time of registration. A lot of people don’t realize that RST still exists in Ontario. Being as it was basically replaced with HST. However, RST is still applicable in a few circumstances. Such as for those buying a used vehicle. This tax is paid at the time of registration of the vehicle. The amount will be based on the value of the vehicle or the purchase price. Whichever is greater. The government has set the taxes this way to avoid underpaying of this tax. It prevents individuals from getting false sales slips that underestimate what the car was sold for. So the buyer doesn’t have to pay the applicable taxes.

Potential Extra Costs

Sometimes there are outstanding fines applicable to the name of the licence plate owner. These will have to get paid at the time of registration or renewal.

How Much Does it Cost to Safety a Car in Ontario?

Safety a Car

Some people don’t realize that when putting licence plates on a vehicle, it has to be proven that it is safe to drive. To be driven on the Ontario roads.  To prove this the individual registering the car has to provide a safety inspection certificate. This is not necessary if one is only registering the vehicle. But, if not plating it they do not need the safety inspection certificate at that time. You do not need to pay the ministry for the certificate. But you do have to pay for the safety inspection. Which will allow you to get the safety certificate which you need to produce.

How Much Does it Cost to Certify a Used Car?

To get the vehicle certified for safety, it has to get inspected at a government-approved facility. Many garages get qualified to carry out these sorts of inspections.  The government does not regulate how much these safety inspections will cost. Normally they are between $60. To $90. But that is just to inspect the vehicle. It does not include the cost of any repairs that are needed. Like those that would bring it up to the required safety standards.

Emissions Testing

Once a vehicle gets registered that is not the end of it. Every year the registration needs renewing. It may be that the vehicle will need an emissions test. This is the Drive Clean Test that is mandatory for vehicles seven years and older in Ontario. The ministry will notify the registered owner of the vehicle when this is necessary.  The costs for this test are going to vary. It can range from being free to additional costs. Depending on the type of vehicle and whether it is the initial test at the time of renewal. Or whether it is a retest. For vehicles that qualify for free testing, it must get done with six months. From the renewal date.

Dealership Fees

car dealership

There are a lot of individuals that buy their new vehicles through one of many Ontario car dealerships. Most often they will buy their car in a trusting manner. They will allow the dealership to add up all the costs and fees and then just sign on the dotted line. What they don’t realize is that there can be a lot of additional fees. Ones that get added in that are not expected, and this can boost the outcome of what needs to get paid.

Sometimes these fees are not paid at the time of purchase. They go on to the cost of the loan of the car they become far more expensive because now interest gets paid on them. What those in Ontario need to realize is that there are rules in Ontario when it comes to pricing by car dealers. They are required by law to produce all in pricing in their advertising.  This means the advertised price must include all fees.

Overall the costs of getting a vehicle on the road in Ontario is not all that high. But what has to be remembered it that there is going to be a need for proof of insurance. You will need to have this in place before you register the vehicle. This means that you will have to pay the premiums as per your arrangement with your Insurance Company. So, this is an extra cost that you need to account for.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.