After a long search, you’ve finally found the perfect car! There’s just one problem – it’s in a different province. Follow our step-by-step guide to figure out what you’ll need to do when buying a vehicle out of province and getting it back to where you live.
Can I buy a vehicle out of province?
You can buy a vehicle out of province, but it won’t be as simple as buying one in your province of residence. You’ll need to travel to inspect the vehicle or arrange to have it inspected by a third party. You’ll also need to factor in the process of transporting your vehicle back home as well as the costs of transferring the title and registration.
It’s also important to be aware of what it takes to register an out-of-province vehicle where you live (since regulations are different for each province). Different provinces will require you to pay different taxes and they may also require you to undergo emissions testing or a vehicle inspection prior to registration.
The 7 steps for buying a vehicle out of province
Click to expand the sections below to find out more about the process for buying a car out of province:
You’ll usually want to inspect and test drive the car you’re looking to buy in person if possible. If you can’t go in person, you may want to pay a little bit extra to get a third-party inspection from a licensed shop before you buy to make sure the vehicle you want is in good shape. Conducting a thorough inspection will give you information about what condition the car is in as well as how likely it will be to hold up over the long term.
You’ll want to check the title of your new vehicle with the local Department of Motor Vehicles to make sure that it does indeed belong to the person who’s selling it to you. As a rule of thumb, the vehicle you purchase will also need to have a clear title and can’t be marked for salvage or rebuild. If you fail to check this information, you could run into trouble when you attempt to register your vehicle.
You may want to use a company like CARFAX to get more details about the history of the vehicle using the car’s VIN number. This can give you pertinent information such as whether your prospective car has been in an accident, is listed as stolen or is attached to any leases or loans that are still outstanding.
It will also give you a full rundown of the sales history for the car and an accurate odometer reading. You can also run a VIN check with the Insurance Bureau of Canada to get more information on the status of your new vehicle.
You have two options for purchasing your vehicle when you’re ready to go ahead with the sale. You can buy it outright with cash or compare car loans from a number of lenders to get the financing you need to buy a car out of province. You can also get a personal loan to pay for your vehicle if this makes more sense for your financial situation.
You’ll usually need to drive your vehicle back home after buying it. Just be aware that you won’t be able to drive the car until you set it up with temporary registration and insurance. This involves visiting an insurance agency in the province where you purchase the vehicle.
They will give you a temporary license plate registration sticker and insurance (usually just for a couple of days) to get the vehicle home and insure it in your province of residence. You can skip this step if you decide to have your car shipped or have the seller drives it over for you.
After buying a car out of province, you’ll need to transfer the title and register your vehicle where you live. Each province has its own set of requirements that you’ll need to fulfill to get your vehicle registered. You’ll have to pay for any registration fees, inspection tests and repairs out of your own pocket – which could run anywhere from a few hundred to thousands of dollars. Since you won’t be able to drive your car until these steps are completed, make sure to budget for those extra expenses when deciding if you can afford to buy a vehicle out of province.
For example, in BC, your vehicle will need to pass a full inspection and get an emissions test – which could cost anywhere from $50 to over $100 – before you can register it. If your vehicle fails any part of the inspection, you’ll have to pay for the necessary repairs or upgrades before you can get it registered in BC. The same goes for out-of-province vehicles being registered in other provinces including Ontario, Alberta and Manitoba.
There are a number of ways to get your car home once you’ve purchased it. Many people will simply drive it home themselves after purchasing temporary insurance. You may also be able to ask the seller to drive it over for you. It’s also possible to have your vehicle professionally shipped if you’re willing to pay for the service. The last two options may be a good fit if you don’t want to get temporary insurance out of province.
Representative example: Buying a car out of province as an Ontario resident
Corey lives in Ottawa, Ontario, but wants to purchase a vehicle in Gatineau, Quebec (just across the river). After doing some research, he finds a 2013 Kia Forte that he’s interested in through a private sale. He heads to Gatineau to inspect the vehicle and checks the VIN and the accident history to make sure the car is in good shape. He also schedules a third-party inspection of the car, which comes back clean.
When he’s satisfied, he applies for financing from an online lender and is approved for $6,500 (the price of the vehicle). He pays for the vehicle in cash and goes with the current owner to an insurance agency in Gatineau. The agency provides temporary one-day insurance and transfers the registration into Corey’s name. Corey then drives the vehicle back to Ottawa and begins the process of registering and insuring it in Ontario.
Overall costs for Corey to purchase the vehicle
The costs below are a representative sample of what Corey might have to pay for buying a car out of province in Ontario. This sample includes the unique cost of buying a car in another province (temporary registration and insurance) as well as the standard costs of buying a car as an Ontario resident.
Purchasing the vehicle: $6,500 (loan + 6.5% interest)
Getting temporary registration and insurance: $75
Acquiring a safety standards certificate: Costs vary by motor vehicle inspection station, but you may find rates between $80 and $200
Updating or fixing issues with the vehicle: Costs vary and can include anything from needing new tires to getting a windshield crack repaired
Vehicle registration and licence plate in Ottawa: $59
Paying HST on vehicle price: $845
Insurance in Ottawa: $1,200 to $1,800 for one year
Sales tax when buying a car out of province as an Ontario resident
Whether you buy a new or used car that’s outside Ontario, 13% HST will apply to your purchase. If you buy a used car from a private seller in another province, you don’t pay HST to the seller, but you do pay it when you register as the new owner of the vehicle. When you buy a new or used car at a dealership that’s in another province, talk to the sales rep to clarify whether Ontario’s HST has been incorporated into the purchase price. Some dealers will arrange this, while others may expect you to cover the difference yourself.
What to consider when buying a car in another province
Consider this list of expenses if you’re thinking of buying a car in another province. This list includes costs you would incur even if you buy a car within your province.
Purchasing the vehicle. You may be able to pay for your vehicle outright to save money on interest. If you can’t do this, you should expect to factor in between 6% and 30% interest on the money you borrow to buy your out-of-province car. The rates you get will depend on factors like your credit score and the car you’re interested in.
Getting temporary insurance and registration. If you intend to drive your vehicle home, you’ll need to get it temporarily insured and registered for it to be legal to drive. This can cost anywhere from $50 to $300, depending on where you buy the car and how long it takes you to get it home.
Transporting your new car home. Depending on where you intend to buy your vehicle, you’ll need to pick it up or have it shipped to your province of residence. These costs can be minor or major, based on the distance you need to travel. You’ll usually pay a very high price to ship your vehicle home.
Getting a safety inspection. You could end up paying a few hundred dollars to get a safety inspection on your vehicle as a requirement for bringing it in from out of province. You may also have to pay for any repairs that are required before the inspector is willing to pass your vehicle so you can get it registered.
Registering and insuring your vehicle. Registering and insuring your vehicle in your province of residence can cost hundreds or even thousands of dollars. You’ll often pay between $60 and $150 to register your vehicle. You’ll then have to pay for a year of insurance upfront (which usually costs over $1,000).
Paying for GST/HST. You’ll have to pay a sales tax of between 5% and 13% on any vehicle you register from another province. This can add hundreds or thousands of dollars to your overall bill, so you should be sure you have the money set aside to cover your taxes.
How much tax do I have to pay on a vehicle purchased out of province?
You may have to pay HST or GST taxes in your home province after buying a car in another province. You should check with the registration office in your home province to find out more about how much this will cost and whether you may be eligible for an exemption. Car sales tax rates may differ depending on whether you’re buying from a dealership or private seller.
You can use the table below as a guide when budgeting for the car sales tax you’ll have to pay to register a vehicle bought in a different province.
Province or territory
Car sales tax rate
Alberta
0 – 5%
British Columbia
7 – 20%
Manitoba
7 – 12%
New Brunswick
15%
Newfoundland and Labrador
15%
Northwest Territories
0 – 5%
Nova Scotia
15%
Nunavut
0 – 5%
Ontario
13%
Prince Edward Island
15%
Quebec
9.975 – 14.975%
Saskatchewan
6 – 11%
Yukon
0 – 5%
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Bottom line
You should try to crunch the numbers to see if buying a car out of province makes good financial sense for you. If you’re saving a significant amount of money on the vehicle or it has special features (such as low mileage or it’s a rare vehicle), then it could make sense to buy it in another province. You’ll just need to be prepared to spend a little bit more to get it home.
Frequently asked questions
You’ll need to consider factors such as how you’ll pay for your car (loan or cash), how you’ll get your car home, how you’ll pay taxes, whether you need an inspection as a condition of registration and how much it will cost to insure or register your vehicle in your home province.
You can get your vehicle home by driving it yourself, asking the seller to drive it to you or by getting it shipped. You may want to look into how much each of these options costs to see which one makes the most sense for your personal situation.
You can typically apply for a loan in your province of residence and then get the cash in hand to pay for your vehicle in another province. With a personal loan, you can easily borrow what you need for the vehicle as well as any extra expenses you may incur for bringing it in from out of province. Getting a car loan that uses your vehicle as collateral to secure the loan may be a little bit more difficult since you’ll only be able to borrow it for the amount of the car.
If you want to skip the headache, you may also be able to secure financing directly from a dealer in another province. This will let you drive off the lot with most of your expenses covered and temporary registration automatically included in your purchase price. Then, you’ll just need to get your car back to your province of residence to get it registered and insured.
When you factor in taxes, Alberta is the “cheapest” because it does not charge a provincial sales tax (PST). So if you live in Alberta, you only have to pay the 5% federal tax for a new or used car that you buy at a dealership and no tax for a used car you buy at a private sale. However, if you live in another province such as British Columbia or Ontario and buy a car in Alberta, you are still required to pay the taxes of the province you live in.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
Learn how to calculate how much car you can afford based on your salary and budget.
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