Where to buy a car

It’s no surprise that nowadays you have more choices for where to buy a car than ever before. While it’s easy to think that heading to your local dealership is the only way to shop for a car, the internet has opened up many other options – some of which allow you to shop for and buy a car entirely from the comfort of your home.

So whether your goal is finding a good deal, choosing from a variety of makes and models or making your purchase as quickly as possible, you can explore a range of options here for where to buy a car in Canada.

Quick view: Where to buy a car in Canada

If you’re wondering where to buy a car – whether new or used – below are some popular options.

	Online	Dealership	Private seller	Auction
Cost	Often more expensive	Often cheaper	Often cheaper	Cheap
Speed of purchase	Depends how much you shop around	Can be time-consuming	Can be time-consuming	Very fast
Used cars available
New cars available
Test drives
Ease of purchase	Easy	Varies — depends on the seller	Varies — depends on the seller	Easy

The 6 best places for where to buy a car in Canada

1. Online
2. New car dealership
3. Used car dealership
4. Private seller
5. Auction
6. Demo vehicle

1. Buying a car online

Websites like the Canadian Black Book, autoTRADER.ca, Craigslist, Kijiji and Carpages.ca let you browse thousands of new and used vehicles from private sellers and car dealerships.

The biggest advantage of buying a car online is that it’s extremely convenient — you can compare a wide range of vehicles and prices without having to get off the couch, and without feeling pressured to buy. Of course, you’ll still need to visit the seller to inspect the car and take a test drive, but shopping online can remove a lot of the legwork and hassle of comparing your options.

However, one of the problems with going online for where to buy your car is that the vehicle may not match the ad posted for it online when you show up to inspect it. There’s also no way of knowing whether private sellers that list their cars online are trustworthy, so it’s important to get an inspection done before you buy, check the car’s history and make sure there’s no finance owed on it.

The 10 best places for where to buy a car online in Canada

You can read our full guide to where to buy a used car online in Canada here for more information on each of these options and how to decide which is the best option for you.

Buy a car online with Clutch

• Pre-qualify with no impact to credit
• Borrow from $7,500 with rates from 8.49%, terms from 12 - 96 months
• Get the vehicle delivered to your door

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2. Buying a new car from a dealership

If you want a shiny new set of wheels and that new car smell, visiting your local car dealerships is likely going to be your first stops when you’re thinking of where to buy a car. You can find dealerships for all major brands in cities and towns across Canada — it’s just a matter of visiting your top choices to start test-driving models.

Peace of mind is the biggest advantage of buying new. A new car is just that, new — you won’t have to worry about parts being worn down, and it’s much less likely to develop issues as quickly as a used car. You also don’t need to worry about service records, previous body damage or any outstanding finance from the previous owner.

Unfortunately, buying a new car from a dealership also means paying a premium price. You can get a car with all the latest features, a new-car warranty and any options you desire — but you’re always going to pay more than you would for a used vehicle.

Finally, buying face-to-face means dealing with sales staff. Car salespeople may not have the best reputation for honesty or integrity, so keep an eye out for the dodgy sales tactics some dealers use to prey on unwitting customers. You’ll also need to deal with the pressure of sales pitches at every dealership you visit.

3. Buying a used car from a dealership

A used car may not have the same level of glamour and excitement as a new vehicle, but buying used allows you to save thousands of dollars. You’ll also find plenty of well-maintained used cars that have been regularly serviced and treated with the utmost care throughout their lives, so it’s certainly possible to find excellent value for money.

The trouble is not all used cars have led trouble-free lives. Mechanical problems, poor servicing history and questionable repairs following previous accidents are just a few of the potential problems lurking just beneath the surface. Dealing with used car salespeople, who have a well-established reputation for dodgy sales tactics and questionable ethics, is another drawback.

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4. Buying a car from a private seller

The internet is not the only place to look for where to buy a car in a private sale. You could see a car advertised in the classifieds section of your local paper, or maybe just marked on the side of the road with a for-sale sign on the windshield.

Buying privately potentially allows you to score a great deal. When you find a mechanically sound car with all the features you want, you can haggle all you want with the seller and try to negotiate the best possible price.

However, you’ll need to watch out for several traps and pitfalls. A clear title isn’t guaranteed, and you could potentially be buying a stolen car. You also won’t get a warranty, so having it inspected by a mechanic is critical before you buy.

5. Buying a car at an auction

Buying a car at an auction is the quickest method for where to buy a car, and can come with significant savings compared to buying from a dealer. Although many auctions aren’t generally targeted toward private buyers, you can find a great deal if you know what you’re looking for.

You’ll typically get to inspect a vehicle before bidding, but test drives aren’t available. Some cars come with a limited warranty and others won’t — the auctioneer will announce this before bidding begins.

With this in mind, it’s important you research ahead of time and keep a cool head when bidding starts.

6. Buying a demo car

One final option worth considering for where to buy a car is looking into buying a demo car from a dealership or online platform. Demo models are usually vehicles that have been used as test-drive cars, but they can also be vehicles used by dealership employees or even used as loan cars.

Because demo cars can sometimes have thousands of kilometres on them and a little wear and tear, you can enjoy substantial savings compared to the cost of a new vehicle. And since they’re often used to show off the best a particular model has to offer, they commonly include a range of top-of-the-line features and extras.

Keep in mind you’re not buying a completely new vehicle, so checking the car’s history before you buy is crucial.

Compare car loans

Once you’ve decided on the best place for where to buy a car in Canada, it’s time to consider how you’re going to finance it. Below is our curated list of car financing providers to help you easily compare your options.

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Name	Product	APR	Loan Amount	Loan Term	Requirements	Long Table Description
CarsFast Car Loans		4.90% - 29.90%	$500 - $75,000	12 - 96 months	Requirements: Min. income of $2,000 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...
Loans Canada Car Loans		1.49% - 31.99%	$500 - $35,000	24 - 120 months	Requirements: Min. income of $1,800 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...
Clutch Car Loans		From 8.49%	$7,500 - No max.	12 - 96 months	Requirements: 3+ months employed, Max.1 bankruptcy, Ontario & Nova Scotia only		Go to site More Info	Compare	loading Fetching your data...
Carloans411 Car Loans		1.90% - 19.99%	$500 - $50,000	Up to 72 months	Requirements: Min. income of $1,600 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...
Canada Auto Finance		4.90% - 29.95%	$500 - $45,000	3 - 96 months	Requirements: Min. income of $1,500 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...
Splash Auto Finance		9.90% - 31.00%	$5,000 - $50,000	24 - 84 months	Requirements: Min. income of $2,200 /month, 3+ months employed		Go to site More Info	Compare	loading Fetching your data...

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Where is the best place to buy a car with bad credit?

If you have less-than-perfect credit or no credit at all, you still have options for where to buy a car. While you might have trouble financing a car through conventional loans from banks and credit unions, some lenders specialize in offering bad credit car loans.

Car dealerships and online car loan lenders are some of the best places to buy a car with bad credit. They cater often offer car loans to consumers who are dealing with bankruptcy, bad credit or no credit at all. You may encounter higher interest rates and fees for any loans you are approved for though.

Generally, borrowers with bad credit can qualify for rates that are as low as 10% up to 29.99% or more. The rate you can secure will vary depending on a handful of key factors, including the following:

• Your financial situation. Your income, how stable it is and your down payment are taken into account when lenders are deciding on your interest rate for a bad credit loan. They need to know you’ll have steady funds to stay on top of repayments.
• Your creditworthiness. Credit scores range from 300 and 900 in Canada. Where your credit score falls in this range helps lenders determine how much risk they’re taking on by offering you a bad credit car loan. Ideally, you’re staying on top of existing debt repayments before you apply to lock in a better car loan interest rate.
• Your loan needs. Lenders need to know how much you need to borrow, how long it’ll take for you to repay your loan and what type of car you’re purchasing (new vs old).

Overall, your go-to will be online lenders that offer bad credit car loans and dealerships that can provide in-house financing options. As always, do your research and compare loan options before deciding on the one with the lowest interest rates, favourable terms, and fewer charges and fees.

Guide to bad credit car loans

Where is the best place to buy used cars?

If you’re shopping for a used car to save some cash while still securing a great vehicle for your needs, you have a handful of options for where to buy a car:

• Dealerships. Don’t count dealerships out while you’re shopping for a used car. Turns out, dealerships will have a large inventory of used cars, including some that are gently used from a years-long lease, were traded in, or were used as car rentals or test drive vehicles.
• Online. You can shop online for a used car the same way you would with a new car. You have convenience on your side too, sorting through a wide range of vehicles without ever having to leave your home. You will have to meet with your seller to inspect the car before buying though.
• Auctions. Auctions are a great way to buy classic cars and rare finds, sometimes at a great steal. Make sure you thoroughly check the condition of any car before bidding to avoid ending up with a lemon that needs a lot of repairs.
• Private sellers. The most non-traditional route for buying a used car is to work with private sellers. You could see a vehicle for sale from a neighbour who has posted a sign in their car’s window or you could hear about a sale from a family friend. These private sales tend to come with lower prices, but you’ll need to be careful with what you’re buying.

3 tips for buying a car

No matter where you choose to buy a car, keep the following tips in mind to help you find the right vehicle at the right price:

1. Compare your options. Compare features, inclusions and prices across a wide range of vehicles. Visiting an auto show can help you check out models from several manufacturers all at once — saving you time.
2. Get an independent inspection. If you’re buying a used car, always get it inspected by a qualified mechanic. This can turn up any mechanical issues and help you decide if it’s the right car for you.
3. Read the contract closely. Always read any contract closely before signing it so you know exactly what you’re getting.

Bottom line

Narrowing down where the best place to buy a car is in Canada can save you time and money when you’re ready to choose your next ride. Putting in the effort now will help you find a reliable car with all the right features without breaking the bank. To get the most out of your money, you can also compare financing options for cars.

Frequently asked questions about where to buy a car

• Should I buy or lease a car?

  Leasing typically comes with lower monthly payments than a car loan, but when the lease is up, you have to give back the vehicle – you can't resell it. You may also have to pay for every kilometre that you drive over your yearly limit. On the other hand, when you buy a car, you can resell it later and maybe earn back some of the money you put into it.

  If you value having total control of your vehicle and being able to save up equity that you can cash in later, then buying may be the right option for you. But if you don't want the full responsibility of vehicle ownership and want to minimize your debt load, leasing could be a good choice. Learn more about your options in our guide to buying a car vs. leasing.

• Where can I find car auctions?

  Auctions held by the government, banks, the police and sometimes private parties are open to the public. Check ahead of time if you're unsure, since some private auctions are only open to licensed car dealers.

• What's the best time of year to buy a car?

  The end of the month is generally considered the best time to buy a car. But, for the best deals, you should try buying towards the end of the year during November or December, so you can cash in on holiday promotions and inventory clear-out prices.

• Can I buy a car if I have bad credit?

  Yes. While some lenders may be hesitant to work with you if your credit score is poor, there are lenders that work specifically with low-credit borrowers. You can look into getting an auto title loan or secured car loan, both of which require collateral and make you less risky to lenders.

  You can also look into getting a cosigner for your car loan. Having a cosigner's income and credit score on your car loan application could potentially improve your chances of getting approved for financing (assuming his or her income and credit score are better than yours).

  Learn more about your options in our guide to getting a car loan when you have bad credit.

• How can I calculate my monthly loan payment?

  You can use our monthly payment calculator by entering how much you want to borrow, your loan term and interest rate.

• How can I avoid pushy salespeople at the dealership?

  If you want to buy a car from a dealership, but hate the negotiation process, you might want to consider using a car-buying service. Car concierges and car brokers will shop for you and negotiate a deal on your behalf. You can learn more with our guide to car-buying services.