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used car

Buying a used car in Canada can be a smart choice if you’re on a budget or looking to save money. However, it’s important to do your research and take some precautions to ensure that you’re getting a good deal and a reliable vehicle. Here are some steps to follow when buying a used car in Canada:

  1. Determine your budget: Before you start shopping for a used car, it’s important to figure out how much you can afford to spend. Take into account the total cost of the vehicle, including taxes, registration fees, and insurance.
  2. Research the market: Look for cars that fit your budget and your needs. Check online classified ads, dealership websites, and used car lots to get an idea of what’s available in your area. Use resources such as CarFax or AutoCheck to get a vehicle history report.
  3. Check the vehicle’s history: Get a vehicle history report to see if the car has been in any accidents, has any outstanding liens, or has any other issues that could affect its value. The report will also tell you if the car has been stolen, written off, or has any outstanding recalls.
  4. Inspect the car: Before making a purchase, have a trusted mechanic inspect the vehicle to check for any potential issues or problems. This will help you avoid buying a lemon.
  5. Negotiate the price: Once you’ve found a car that meets your needs and has a clean history report, negotiate the price with the seller. Be prepared to walk away if the seller isn’t willing to negotiate.
  6. Complete the paperwork: Once you’ve agreed on a price, make sure that all of the necessary paperwork is completed. This includes transferring ownership of the vehicle, registering the vehicle with your province, and getting insurance.

By following these steps, you can find a used car that fits your budget and meets your needs while minimizing the risk of any potential issues or problems.

Do You Have to Pay Sales Tax on a Used Car?

Tax

The taxes and fees on a used car purchase in Canada can vary depending on the province or territory. Here is an overview of the taxes and fees that you may encounter when buying a used car in each province:

  1. Ontario: The tax rate for purchasing a used car in Ontario is 13% (HST). In addition, you will need to pay a registration fee of $32 for a private sale or $90 for a dealership purchase.
  2. Quebec: The tax rate for purchasing a used car in Quebec is 9.975% (QST). In addition, there is a registration fee of $53.75 for a private sale or $76.50 for a dealership purchase.
  3. British Columbia: The tax rate for purchasing a used car in British Columbia is 12% (PST and GST). There is also a $75 registration fee.
  4. Alberta: There is no provincial sales tax in Alberta. However, you will need to pay a $9 registration fee.
  5. Saskatchewan: The tax rate for purchasing a used car in Saskatchewan is 6% (PST). There is also a $55 registration fee.
  6. Manitoba: The tax rate for purchasing a used car in Manitoba is 7% (PST). There is also a $20 registration fee.
  7. New Brunswick: The tax rate for purchasing a used car in New Brunswick is 15% (HST). There is also a $20 registration fee.
  8. Nova Scotia: The tax rate for purchasing a used car in Nova Scotia is 15% (HST). There is also a $23.20 registration fee.
  9. Prince Edward Island: The tax rate for purchasing a used car in Prince Edward Island is 15% (HST). There is also a $15 registration fee.
  10. Newfoundland and Labrador: The tax rate for purchasing a used car in Newfoundland and Labrador is 15% (HST). There is also a $50 registration fee.

These taxes and fees are subject to change, so it’s always a good idea to check with your provincial government or a licensed dealership for the most up-to-date information.

How Much are Licencing Fees When Buying a Car?

Licencing Fees

The licensing fees when buying a car in Canada can vary by province or territory. Here’s a breakdown of licensing fees in each province:

  1. Ontario: The licensing fee for a passenger vehicle is $120, plus an additional $10 for a license plate. If you are purchasing a used vehicle, there may also be a transfer fee of $32.
  2. Quebec: The licensing fee for a passenger vehicle is $89.50, plus an additional $23.50 for a license plate. There may also be a transfer fee of $35.50 for a used vehicle.
  3. British Columbia: The licensing fee for a passenger vehicle is $75, plus an additional $18 for a license plate. There may also be a transfer fee of $18.
  4. Alberta: The licensing fee for a passenger vehicle is $93, plus an additional $22 for a license plate. There may also be a transfer fee of $9.
  5. Saskatchewan: The licensing fee for a passenger vehicle is $75, plus an additional $14 for a license plate. There may also be a transfer fee of $20.
  6. Manitoba: The licensing fee for a passenger vehicle is $45, plus an additional $10 for a license plate. There may also be a transfer fee of $35.
  7. New Brunswick: The licensing fee for a passenger vehicle is $67.80, plus an additional $10 for a license plate. There may also be a transfer fee of $20.
  8. Nova Scotia: The licensing fee for a passenger vehicle is $120, plus an additional $22.95 for a license plate. There may also be a transfer fee of $25.
  9. Prince Edward Island: The licensing fee for a passenger vehicle is $100, plus an additional $10 for a license plate. There may also be a transfer fee of $5.
  10. Newfoundland and Labrador: The licensing fee for a passenger vehicle is $120, plus an additional $16.25 for a license plate. There may also be a transfer fee of $17.

How Much Does it Cost to Certify a Used Car?

The cost to certify a used car can vary depending on the province or territory. Here’s a breakdown of certification costs in each province:

  1. Ontario: The cost to certify a used car in Ontario can vary depending on the mechanic or dealership you choose. Generally, the cost can range from $100 to $250, depending on the level of inspection required.
  2. Quebec: The cost to certify a used car in Quebec is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $50 to $150.
  3. British Columbia: The cost to certify a used car in British Columbia is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $50 to $200.
  4. Alberta: The cost to certify a used car in Alberta is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $100 to $200.
  5. Saskatchewan: The cost to certify a used car in Saskatchewan is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $75 to $150.
  6. Manitoba: The cost to certify a used car in Manitoba is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $75 to $150.
  7. New Brunswick: The cost to certify a used car in New Brunswick is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $50 to $100.
  8. Nova Scotia: The cost to certify a used car in Nova Scotia is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $100 to $200.
  9. Prince Edward Island: The cost to certify a used car in Prince Edward Island is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $50 to $100.
  10. Newfoundland and Labrador: The cost to certify a used car in Newfoundland and Labrador is not mandatory. However, if you choose to have the vehicle inspected, the cost can range from $50 to $100.

Things to Remember When Buying a Used Vehicle in Ontario

Test Drive

Buying a used vehicle in Ontario can be a great way to save money, but it’s important to do your research and take some precautions to ensure that you’re getting a good deal and a reliable vehicle. Here are some things to remember when buying a used vehicle in Ontario:

  1. Get a used vehicle information package: Before you buy a used vehicle in Ontario, you should get a used vehicle information package (UVIP) from the Ministry of Transportation. This package contains important information about the vehicle, including its registration history, accident history, and any liens on the vehicle.
  2. Have the vehicle inspected: Before you buy a used vehicle, you should have it inspected by a trusted mechanic. This will help you identify any potential issues or problems with the vehicle that may not be apparent during a test drive.
  3. Test drive the vehicle: It’s important to take the vehicle for a test drive to get a feel for how it handles and to identify any potential issues or problems.
  4. Check the vehicle’s history: Use the UVIP to check the vehicle’s registration and accident history, as well as to see if there are any outstanding liens on the vehicle.
  5. Negotiate the price: Once you’ve found a vehicle that meets your needs and has a clean history report, negotiate the price with the seller. Be prepared to walk away if the seller isn’t willing to negotiate.
  6. Complete the paperwork: Once you’ve agreed on a price, make sure that all of the necessary paperwork is completed. This includes transferring ownership of the vehicle, registering the vehicle with the Ontario Ministry of Transportation, and getting insurance.
  7. Beware of scams: When buying a used vehicle in Ontario, be wary of scams. Don’t wire money to a seller, don’t give out personal information, and don’t agree to meet the seller in an unusual location.

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.