Whether you have lived in Canada for your entire life or are new to the country, buying a new vehicle is more than just walking into a car dealership, pointing at a car, and then driving away. Some steps should be taken to ensure you are not only getting the new car you want, whether that means a used car or a new one but also making sure you don't miss something that will come back to haunt you later.
If you are a newcomer to Canada, there are a few extra items on the vehicle buying checklist that need to be followed. And, if you are new to Canada, there’s a good chance you’ve never heard of us, FFUN Cars. Well, let us introduce ourselves. We are the new (awesome) way of buying a vehicle. We aren’t the traditional dealership with salespeople who waste your time haggling on a price. We offer options, like buying a vehicle online or in-store. That’s right, if you want, every step in the car buying process can be completed online, including getting qualified (you can do it in two minutes with us), shopping the available inventory, and completing the transaction. We also buy vehicles. But, we are more than all that. We consider ourselves an information portal for all things related to car buying. So, as part of being information gurus, we are going to lay out some things to consider before you set out to buy your first car in Canada.
Before we even get into the car buying process, it’s probably fair that we lay out what you will need to purchase and drive a car. Not that we are about convincing people not to buy a vehicle; after all, we are a car buying service, but since you are moving to Canada and there can be high costs associated with that, ask yourself if you even need a vehicle right away. If you are moving to a bigger city centre like Toronto, Calgary, or Vancouver, they all have amazing public transportation. If you can get away without having a vehicle, it might be worth waiting, as it will give you a chance to establish some credit history which ultimately helps you get lower interest rates on a car loan. But, remember, Canada is a vast country with wide open spaces, so unless you live in a city hub or don’t plan on leaving your house, a vehicle is a necessity.
Yep, You Need a Driver’s License
Good news. You don’t need to have years of driving experience as a Canadian driver to buy a car. Phew, got that out of the way as we didn’t want you to feel discouraged about trying to buy a car. On the other hand, you do need to have a driver’s license. It is not so much about needing a driver’s license as a first-time buyer in Canada to purchase your first vehicle as it is about needing one to get car insurance for the vehicle.
Car Insurance is Important
One could argue that you don’t need to have vehicle insurance to buy a car as a new immigrant to Canada, but at the same time, why would you be buying a new vehicle if you weren’t planning on driving it? That leads to our next point. Yes, to drive a car in Canada, you do have to have it insured. Full disclaimer, Canada (especially BC) is known for insurance companies having extremely high insurance rates. Luckily, you do not have to pay for all of your insurance up front, as you can set it up with a monthly payment schedule. The cost of insurance is based on your driving record that is attached to your driver’s license, and since you won’t have any driving history in Canada, take a deep breath and accept that your premiums will be higher than those who have been driving for years in Canada.
Vehicles Registration
We would love for the government to not know everything about our lives, but that isn’t going to happen when it comes to owning a vehicle, which means, you need to have vehicle registration. In Canada, it’s easy to register a vehicle and it’s great that the country requires it. It’s basically a link between the vehicle and the owners it has had. Anything that is reported on the vehicle is then recorded so you can always find the history of a vehicle by requesting or ordering a vehicle history report.
Onto Tips for Buying a Car
Buying a vehicle is one of the biggest purchases you’ll ever make and if you’re moving to Canada or just moved, it is most likely the first big purchase, and the last thing you want to do is make a mistake on what you buy. With that being said, you should always follow these tips - new Canadian or born and raised Canadian.
What Do You Need
Ask yourself what you need out of a vehicle and compare your needs to your wants to determine what is really important when buying your first Canadian car. Once you have established a list of must-haves, decide what type of vehicle will fulfill those needs, such as an SUV, sedan, minivan, or pickup truck.
Research Vehicles
Google is your friend. Use it, like seriously take advantage of it. You’ve already determined your needs and wants and what type of vehicle will be best suited for you. Now it’s time to research those vehicles. As part of your research, look at what specific vehicles usually sell for and check out various dealerships to see what their purchase prices are. If you are considering paying with cash, there is always the option of buying from a private seller - just take extra precautions. Or you can come to us, where we promise not to pester you and push something on you that you don’t need. How can we, the entire process is completed online, so there aren’t any pushy salespeople breathing down your neck?
In Canada, dealerships are always having promotions where they offer rebates on certain vehicles and special offers that go with a vehicle purchase, so be aware of these. Taking advantage of the incentives dealerships offer is a great way to save some money.
Test Drive
You won’t buy a pair of shoes without trying them on, so why would you buy a car without test-driving it? Always take the vehicle(s) you are considering for a test drive. Not a little one around the block; a long one where you have a chance to get a full feel for the vehicle. If you are buying a used car, we highly recommend you take it in for a pre-purchase inspection, especially if it doesn’t come with a warranty. We are such firm believers in test drives that we offer a 24-hour one on every vehicle. If you don’t like the vehicle, no problem.
Financing
Wouldn’t it be nice if we could all get vehicles for free? (BIG LOL to that) Unfortunately, that’s not how it works. Probably the biggest part about buying a vehicle (used vehicle or new) is paying for it. In Canada, it’s not required to purchase a vehicle with cash as there are lots of financing options available. You can lease a vehicle, finance it (car loan), or pay with cash. Financing or leasing a vehicle does require going through a lender and determining what you qualify for. The interest rate you get is based on your credit score, and since you are new to Canada, you probably don’t have any credit, which (unfortunately) means less desirable loan terms. On the bright side, a car loan is a great way to establish credit in Canada. Since you only pay interest on the amount financed and not the price of the vehicle, if you have a down payment that will help keep your monthly payments lower.
So you’ve got the gist of buying a car in Canada; now it’s time to get one. Since you are trying to figure out how Canadian life works, the last thing you want is a painful car buying experience. Well, start here, and it won’t be. Browse FFUN Cars’ inventory, enjoy a 360° virtual tour, check out the free CARFAX report (that’s a report that shows the entire history of the vehicle), complete the purchase online or in-store, and then drive away. Don’t forget, you can also do your financing online - we can even help with getting you approved!
