Buying a new car is not as simple as entering a dealership, picking a vehicle and driving away. There are numerous steps you must take before you can own a car. In Canada, each province has its own rules and regulations that you must follow. While the dealership can help you through the car buying process, it’s much better if you know what is required yourself.
In this post we’ll go through the procedure, intricacies and help you insure, register and finance your new car. We’ll begin from the west coast and work our way east.
British Columbia
In BC, most vehicles have 30 days to be registered, licensed and insured after purchase. Before a vehicle can be insured and licensed, it must first be registered with ICBC. Depending on your vehicle, the process may be different.
If your vehicle was registered by a person or a company in BC, then you can approach an Autoplan broker to update your information and acquire the licence and insurance.
Insurance at the most basic level is mandatory for all vehicles in BC. Speak to an Autoplan broker to help determine which plan would work best for you. You must tell your broker how exactly you are planning to use you vehicle and who will drive it.
Many dealerships in BC will help you handle the financing aspect of owning a car, but if you want to figure out how big of a loan you can get, try this handy Car Loan Calculator from CIBC.
Alberta
If you are buying a car in Alberta, insurance and registration is required by law. As an Alberta resident, you must register your vehicle with the Alberta Registry Agent. After your car has been registered, you will receive a licence plate.
In Alberta, insurance premiums and coverage vary depending on the company you are buying it from. You can get estimates from a few companies and come to a decision then, or you can visit the Insurance Bureau of Canada for more details.
If you need a car loan in Alberta, you can apply for credit. All you have to do is estimate the payment and apply at a company that helps car buyers, like Go Auto.
Saskatchewan
Insurance and registration are also required for car ownership in Saskatchewan. You have to pay a flat registration fee and then obtain a licence plate and a basic insurance package.
There are a number of motor licence issuers. Check out this search if you want to find one near you in Saskatchewan.
If you need a car loan, you can fill out an online application form – fast and easy. Car Loans Canada works with lenders that are more interested in helping you get a car and less about your credit history.
Manitoba
In Manitoba a Basic Autopac is mandatory for car owners. The Basic Autopac includes protection in the event of a personal injury, all perils collision or third-party liability claim. You can choose to upgrade.
To register a vehicle in Manitoba you’ll need proof of vehicle ownership, certificate of inspection by a Manitoba vehicle inspection station, and if the driver is below the age of 18, a written consent from parents or legal guardian.
If you need a clearer image of what financing a vehicle in Manitoba (Winnipeg) is like, check out this payment calculator to help you estimate your car loan.
Ontario
Before you can own a car in Ontario, you must register and insure it. To register, you must have a proper insurance, proof of ownership, license plate with the current validation sticker and guarantee that the vehicle meets appropriate safety and emission standards.
To get insurance for your vehicle you can approach a private insurance company. Your vehicle must be insured for third-party liability, covering at least $200,000. When you are driving your car or someone else’s you must carry the liability insurance card “pink slip” for the vehicle.
If you are a Canadian resident over the age of 18 and you are planning to buy a car where the monthly payment is no greater than 20 per cent of your monthly income and the amount is less than 10 times your monthly income, you can get approved for a car loan in Ontario. That is as long as your past bankruptcy has been discharged.
Quebec
Unless your vehicle is exempted under the Highway Safety Code, it must be registered. Depending on your vehicle, the fees for registration will differ. For more information visit Soiété de L’assurance Automobile Quebec.
The Automobile Insurance Act states that all cars in Quebec must have insurance that covers at least $50,000 in liability. There are numerous private companies that offer auto insurance. You can contact them individually to get quotes or you can check out this Auto Insurance Quote search, which calculates the lowest rate in the province.
Quebec has a competitive car loan market. There are many lenders out there that can help you finance your vehicle.
Newfoundland and Labrador
You are required by law to insure your vehicle in Newfoundland and Labrador. Your insurance coverage must include third-party liability as well as uninsured and unidentified automobile.
To register for a vehicle you must present a bill of sale, new vehicle information statement (issued by the manufacturer), vehicle registration application that includes your required information and insurance information to the Motor Registration Office.
If you have bad credit, you can still apply for a loan at Car Loans Canada, which works with you and your lenders to help you get the car you want. They are, of course, only an alternative since you can always work with a bank.
New Brunswick
In New Brunswick, individual insurers determine the rates of each vehicle, which are then reviewed by the federal and provincial government, in addition to the New Brunswick Insurance Board. You can compare the insurance prices on a site like LowestRates.ca.
To register your vehicle, new car owners can go to Service New Brunswick. There you need to present proper details like make and model, vehicle body type, vehicle serial or identification number, classification whether it is used or new and date of sale by manufacturer or dealer if the car is new.
Nova Scotia
All car owners in Nova Scotia are required by law to have insurance that covers third-party liability, direct compensation for property damage, uninsured and unidentified automobile and mandatory accident benefits. That is about $500,000 in liability coverage. You’ll need to buy the insurance from private non-government insurance companies in Nova Scotia.
Car owners will also need to register their vehicle and receive a permit – these are not the same in Nova Scotia. Registration is the proof of ownership and the permit allows the vehicle to be driven. You can get both at the Registry of Motor Vehicles Office.
Prince Edward Island
In PEI, car owners are required the minimum mandatory car insurance coverage of third-party liability, uninsured automobile and accident benefits. You can get your coverage at independent insurance dealerships in the province. Because the premium varies, you should compare the quotes on a site like LowestRates.ca.
To register your vehicle, you’ll need proof of vehicle ownership and pay a registration fee of $100 annually. You can do this online through the PEI government website.
Bottom Line
As you can see, car ownership in this country can be quite a process, especially if you don’t know where to start. Walking into a dealership ill-prepared can be costly. Do your research, see if you need financial assistance and then budget appropriately. We hope this post has given you a good direction.
Enjoy the great Canadian roads!
