A Newcomer’s Guide to Buying a Car in Ontario, Canada

When you move to a new country, starting over comes with many milestones to achieve. One of those milestones for us was buying a car in Ontario.

We started this journey by first obtaining a driver’s license, allowing us to drive legally in the province. After 1.5 years of living without a car, we finally decided to take the leap.

In this post, I’ll share the step-by-step process we followed to buy a used car in Ontario as newcomers. If you’re new to Canada and unsure where to start, this guide will help you navigate buying a car in Ontario with confidence.

1. Decide Between a New or Used Car

The first step in buying a car in Ontario is deciding whether you want a new or used vehicle.

We chose a used car for a few reasons:

  • Car insurance in Ontario is expensive, and we wanted to pay for the car upfront, focusing only on monthly insurance payments.
  • Our work permits were short-term, so taking on long-term debt wasn’t an option.
  • Used cars in Ontario are generally in good condition and a more affordable choice.

2. Set Your Budget

Once you decide on a used or new car, set a clear budget. This helps you narrow your search and ensures you’re financially prepared.

Your budget should include:

  • The car’s price
  • Taxes (13%)
  • License plates and registration

We also identified additional preferences like the make, mileage, and whether we wanted a manual or automatic transmission. In Ontario, most cars are automatic, which made our search easier.

3. Research Your Ideal Vehicle

There are two main options for buying a car in Ontario: through private sellers or dealerships.

For our search, we used platforms like Auto Trader, Kijiji, and Facebook Marketplace. 

These platforms allow you to set filters for price, mileage, and other preferences, making it easier to find your ideal vehicle.

Kijiji platform main page
Kijiji Platform Main Page

4. Schedule Visits and Inspections

Once you’ve pre-selected a few cars, contact the sellers to schedule a visit. This step is crucial to ensure the car is in good condition.

If possible, bring a mechanic to inspect the car. In our case, a friend with experience in auto repair helped us.

Schedule visits to check the car’s condition

During the visit, make sure to:

  • Test drive the car
  • Check the Vehicle Identification Number (VIN) against the documentation
  • Inspect the oil dipstick and tires

5. Review the Paperwork

When buying a car in Ontario, it’s important to carefully review all the paperwork before finalizing the purchase. After visiting the car or cars on your list, compare them to ensure you’re making the right choice.

Connect with the owner to confirm your decision, and make sure to check these documents beforehand:

  • Safety Standards Certificate (SSC): This document provides the results of a vehicle inspection. It includes a checklist of 36 points that must pass inspection for the certificate to be issued. While not mandatory, it’s a helpful way to confirm the car meets Ontario’s safety requirements. The SSC includes details such as the inspection company, vehicle specifications, and the inspection date. Keep in mind it’s only valid for 36 days.

Here is an example of the document:

Example of Safety Standards Certificate
  • Used Vehicle Information Package (UVIP): This is a crucial document when buying a car in Ontario, as it provides the car’s history. It includes:
    • Section 1: Vehicle Details – Specifications like VIN, plate number, make, model, and colour.
Used Vehicle Information Package (UVIP) example
  • Section 2: Current Owner – Confirms the seller is the rightful owner. You must confirm that this person is the person you are purchasing the vehicle from.
Current Registrant Example
  • Section 3: Ontario Vehicle History – This section lists previous owners, registration dates, and odometer readings.
Ontario Vehicle History example
  • Section 4: Lien Information – This section shows if there are any liens against this vehicle.
Lien Information Example
  • Section 5: Bill of Sale – A blank section for the seller to record details of the transaction, including price, date, and signatures. It is used as proof of payment from you to the owner.
Bill of Sale Example
  • Permit: This document has two parts: one for the vehicle and another for the license plate. Typically, this is the main document the owner has on hand. Negotiate with the seller to provide the SSC and UVIP if they aren’t already available. These documents ensure the seller is the legitimate owner and the car is properly registered.
Permit example

6. Finalize the purchase

After reviewing the documents, confirm the sale with the owner. Arrange for them to deliver the car to your home, as they’ll need to remove their license plates.

Unlike in some countries, where license plates stay with the car, in Ontario, the plates belong to the owner. You’ll need to purchase your own plates when registering the vehicle.

The seller must provide:

  • The UVIP, which should include the sale amount
  • A signed registration certificate (permit)

7. Get Car Insurance

Car insurance is mandatory when buying a car in Ontario. You’ll need it before you can legally drive. To get insurance, prepare your driver’s license and vehicle registration.

We purchased our car insurance online through Onlia.ca, as it offered the best price for our needs at the time. For our RV, we chose TD Bank. Be sure to compare rates to find a provider that works best for you.

8. Register Ownership

Once you’ve completed the purchase, you must register the vehicle within six days at Service Ontario. This step is essential for transferring ownership when buying a car in Ontario.

Bring the following to Service Ontario:

  • The signed permit from the seller
  • The UVIP showing the sale amount
  • Proof of car insurance
  • Your driver’s license

Service Ontario will provide your plates, a new permit with your name, and a tax breakdown (13% of the car’s purchase price).

Conclusion

Buying a car in Ontario is a significant milestone, especially if you’re new to Canada. By following these steps—from deciding on a car to completing the registration—you’ll be well-prepared to navigate the process with confidence. Remember to take your time, compare options, and ensure all paperwork is in order to make the best decision for your needs.

If you’re still working on getting your driver’s license, check out our guide on how to get a driver’s license in Ontario. Having a license is the first step to enjoying the freedom of owning a car in this beautiful province.

With your new vehicle, you’ll have the flexibility to explore Ontario and make the most of your time in Canada. Happy driving!