Tips for Buying a Used Car in Canada
From Adviceopedia
If you are in the market for a vehicle, check out these tips for buying a used car in Canada listed below. They can help you avoid getting scammed when you want to replace your set of wheels.
Advice and Tips for Buying a Used Car in Canada
Check the Safety Features
The used car you are considering should have working anti-lock brakes. If airbags are standard for the model year of the car, they should be intact.
How Many Miles?
The mileage on the vehicle is an important consideration. The average driver can be expected to put between 12,000-15,000 miles (19,312 - 24,140 kilometers) on his or her car in a year. Use these figures to give you an idea of how old the car is.
Check the Vehicle Inside and Out
A thorough inspection is a must before you make an offer to purchase a used car. Check the vehicle inside and out. You need to know exactly what you are getting before the sale is finalized.
Ask About the Car's History
Canadian used-car buyers can check out the history of the vehicle they are considering buying by visiting Carfax.com. If you have the Vehicle Identification Number (VIN), you can find out:
- Whether the vehicle has ever been involved in an accident
- If the car was ever used as a taxi or a rental car
- Service history
- Results of emissions tests
Go for a Test Drive
The only way you will get an idea of how a particular vehicle handles is by actually driving it. Take the car out onto the road to make sure it runs well. You will want to test it both in town and on an interstate or highway to make sure it runs smooth at higher speeds.
Have Your Mechanic Check Out the Car
A number of used-car buyers will arrange to have their own mechanic inspect the vehicle before completing the sale.
Consider Buying from a Licensed Dealer
One good tip for buying a used car in Canada to keep in mind is that if you buy your car from a licensed dealer, you have up to $20,000.00 in legal protection if the car is found to be stolen or has an outstanding lien registered against it. They may also be able to protect the buyer against undeclared damage to a vehicle. Keep in mind that if you buy from a private individual, you are getting the car "as is."
Check out the Car Dealer with the Better Business Bureau
Your local Better Business Bureau can provide information about a car dealer's record with other customers. You can also access the BBB's records online.
Buy From Someone You Know
Do not buy the car from someone you know. In a sociology and economic aspect of the transaction, yes, it will save you money in the short run, but harm the relationship between you and the person you made the deal with in the long run if the car has problems later on.
Look After the Paperwork
Once you have found a used vehicle that you would like to purchase, make sure the title to the vehicle is transferred to you as the new owner. You will need the Vehicle Registration form and a Transfer/Tax form.
The Transfer/Tax form includes the following information:
- Description of the Vehicle
- Price
- Buyer and Seller's Names/Addresses
- Date of Purchase
Both parties also need to sign the Transfer/Tax form.
Pay Tax on the Your Purchase
If you purchase your used car from a dealer, you will be required to pay both a Goods and Services Tax (GST) of 5% of the purchase price. No GST is payable if you buy from a private seller. When you go to the Ministry of Transportation to register your plates, you will be required to pay a Provincial Sales Tax. The amount of tax owing will vary, depending on the province.
Buy Insurance
Don't forget to contact your insurance company or broker to arrange for insurance for your new vehicle.
