Car-buying guide: How to buy a car in Canada

The time to buy a car is during slower business times and sales deadlines, as you’ll likely get a better deal. Avoid weekends and holidays, but capitalize during the day and at the end of a sales cycle. Additionally, at the end of the year, dealers will often sell off their old inventory to make room for new car models. Here are more tips for the best time to buy a new car in Canada.

The documents you need to buy a vehicle in Canada differ based on your province or territory and whether you’re buying from a dealer or private seller. In general, you will need a valid driver’s license, vehicle registration and proof of auto insurance. You may also require proof of income and a bill of sale. Refer to your provincial guidelines to learn what documents you need.

Buying a new car typically yields the lowest interest rate, which will help you get the best auto loan rate. A shorter loan term will also lower your rates, but it comes with higher monthly payments, so be sure you can afford it. Much of what goes into your auto loan will depend on economic factors out of your control, so focus on what you can control (down payment, debt, and a shorter loan) to get the best rate. Here are more tips for getting the best car loan rates.

No, you cannot legally drive a car in Canada without valid car insurance, including when you purchase a new vehicle. You should have active auto insurance before you take ownership of the car. Contact your car insurance company to start coverage on the new car before you plan to drive it home.

No, it is against the law to drive a vehicle in Canada without license plates. In some provinces, such as Ontario, you can purchase a temporary permit to drive a car home after purchase.

Both car registration and car insurance are mandatory in Canada; however, their purposes differ. Car registration means registering the vehicle in your name with your province or territory. Car insurance refers to financially protecting yourself in case of an accident, theft or damage to your vehicle.

Yes, non-residents and newcomers to Canada can buy vehicles, although there may be extra steps to take before purchasing. You’ll need a valid Canadian address and proof of identification. You may also need a valid Canadian driver’s license or an international driving permit to secure insurance. For more information, visit our newcomer’s guide to buying a car.