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In the last few years, the launch of online car dealers made it easier to buy a car online in Canada. In a recent Finder survey, where more than 1,011 Canadians were asked about their 2023 spending plans, 9% of respondents selected an online dealership as their first choice for buying their next car.
If you’re interested in buying a car online, we can help. In this guide, learn about seven online car dealers in Canada, including where they operate, what benefits and features they offer, and how to pay for and get your car delivered without ever leaving your home.
We searched for car dealerships in Canada that offer an online process from start to finish, from browsing their inventories to delivering the car to your doorstep. We excluded online automotive marketplaces such as Carpages.ca and AutoTrader.
1. Clutch
Clutch offers a 210-point inspection and shows a visual depiction of any damage to its vehicles on the website so you know exactly what you’re buying from this online car dealer.
Serviced provinces: Ontario and Nova Scotia
Number of used cars: 300+
Types of cars available: Cars, SUVs, Jeeps, trucks (2012 or newer with 150,000km or less)
Trial period: 10 days/750 km
Warranty: 90 days/6,000 km for free
Negotiable prices: No
Free CARFAX report: Yes, just click “View CARFAX” on the listing you’re interested in
Delivery to your home: Yes, but you may need to pay a fee of $399 in some locations. Speak to Clutch to find out if you qualify for free shipping
Carnex is an Ontario-based online car dealer that specializes in electric vehicles, with the lowest ticket price starting at $50,000.
Serviced provinces: Ontario and surrounding region
Number of used cars: Currently, there are only 10 cars available (but inventory fluctuates based on supply/demand)
Types of cars available: Electric vehicles only
Trial period: 10 days/720 km
Warranty: 100 days/5,000 km for free
Negotiable prices: No
Free CARFAX report: No, but you can access a free 170-point inspection report on every listing, which highlights any previous accidents based on VIN
Delivery to your home: Free within 250km of Toronto
4. Autorama
Autorama is a physical dealership in Toronto, but this forward-thinking company is also set up to allow you to buy a car online in Canada. It offers both at-home and in-person car purchases and gives free cars to people in need with its Care to Share program.
Serviced provinces: Ontario
Number of used cars: over 200
Types of cars available: Cars, SUVs, minivans
Trial period: No trial period is available
Warranty: Paid warranty options only
Negotiable prices: Does not seem to support negotiating on prices
Free CARFAX report: Yes, available on each listing
Delivery to your home: Look for the “Buy from home available” stamp on the listing to find out if you can pay online and get the car delivered to your home
5. Car Canada
This online car dealer lets you shop for new and used vehicles online in the Ottawa area and enjoy virtual tours of each vehicle, at-home test drives and buy-from-home options.
Serviced provinces: Ontario (Ottawa area)
Number of used cars: Over 500
Types of cars available: Cars, SUVs, trucks, minivans, convertibles
Trial period: Not listed
Warranty: Not listed
Negotiable prices: No
Free CARFAX report: Not available online, but may be available through the dealer
Delivery to your home: Options to “Buy at home” and test drive vehicles at home
6. DriveAxis
This Ontario-based online car dealer is the direct-to-consumer portal for Axis Auto Finance. DriveAxis offers ‘best price’ guarantees, where they will price match plus give you an extra $500 if the website isn’t up to date with the latest dealer pricing.
Serviced provinces: Ontario
Number of used cars: Over 500
Types of cars available: Cars, SUVs, trucks, minivans
Trial period: 7 days
Warranty: Paid warranty options only
Negotiable prices: No
Free CARFAX report: Provided prior to finalizing purchase
Delivery to your home: Yes, but you may pay a delivery fee depending on where you live in Ontario
7. CarMonk
CarMonk is a car-buying platform owned by Consumer Genius Inc., which also owns other brands in the lending space such as Loanz and CarsFast.
Currently, its website is less developed than its competitors, but it offers similar services.
Serviced provinces: Ontario
Number of used cars: Less than 100 currently but numbers fluctuate regularly
Types of cars available: Cars, SUVs, trucks, minivans
Trial period: 7 days
Warranty: 90 days/5,000 km for free
Negotiable prices: No
Free CARFAX report: Yes
Delivery to your home: Yes, but you may pay a delivery fee depending on where you live in Ontario
What do I need to provide to buy a car online in Canada?
You’ll need the following documents or information to buy a car online:
Government-issued ID. Show ID when you buy a car online so that online dealers can verify your identity.
Personal information. Fill out an application with information such as your full name, address, phone number and other contact details.
Payment. Pay by cash, credit card or bank draft in most cases if you’re paying for your car outright.
Deposit or down payment. Provide a deposit or a down payment to purchase a car with financing. The financing can be in-house, through the online dealer, or from another car loan lender.
Bank account information. Supply direct deposit information to pay for your car or make your monthly repayments if you get in-house financing.
Insurance/registration. Online dealers will work with you to get your registration and temporary insurance, so you can drive your vehicle home.
What should I get from my dealer when buying a car online?
CARFAX report. Ask for a copy of the vehicle’s CARFAX report to prove that it hasn’t been involved in any accidents or thefts.
Inspection report. Request an inspection report from the online dealer, and make sure you inspect your car when it arrives to check for potential issues.
Maintenance records. Check if routine maintenance receipts for oil changes, air filters and other repairs are available. Many online dealers will collect this information from previous owners as a way to show proper maintenance and care for a vehicle.
What should I watch out for?
Watch out for the following potential issues when you buy a car with an online dealer:
Vehicle damage. Ask online dealers for an inspection report and carefully examine the vehicle when it arrives to check for mechanical or cosmetic damage.
Hidden fees. Watch out for set-up fees, delivery fees and other charges that may show up in the fine print when you check out.
High-interest rates. Watch out for high-interest rates with in-house financing, and compare various lenders to make sure you’re getting the best deal.
Trial period cut-offs. Check how long you have to “test drive” the vehicle and keep an eye on your mileage to make sure you don’t exceed allowable limits. That said, drive the car as much as possible within limitations to make sure it’s in good shape.
Lack of warranty coverage. Many online used car dealerships in Canada will give you a 90-day warranty. Think twice before signing with online car dealers that offer no form of protection.
Bottom line
While most Canadians still prefer to visit new or used dealerships, when buying a car, a larger number of Canadians are becoming more comfortable and more familiar with the online car buying process. In the recent Finder: Consumer Sentiment Survey Q2 2023 survey, more than 1,000 Canadians were asked where they planned to buy their next car and 9% opted for an online dealership.
To help with the process of buying a vehicle from an online car dealer in Canada, keep the following in mind:
Online car dealerships can be an easy and convenient way to purchase a vehicle if you know where to shop and what to watch out for before you buy.
Many online dealers let you pay for your car outright using cash, credit card, bank draft or external financing. You can also apply for in-house financing with most online dealers, or bring financing from a preferred car loan lender.
Once you pay, your car will be delivered to your house and you’ll often have a promo period to test drive the car before your payment is finalized.
Not exactly. Canada Drives helps customers get a car loan and then matches you with a local dealership where you can buy your car. It is not a direct car dealer with its own inventory of vehicles. Instead, you can think of Canada Drives as a car broker that helps connect you with financing and vehicles in your area.
Yes. Online car dealers in Canada have grown in number and market share over the last decade. These days, you can buy a car in Canada using a completely online process — which allows you to shop for a car online, make payments and get the vehicle delivered to your doorstep without ever setting foot inside a showroom or pounding the pavement researching vehicles.
Finding the best online car dealer in Canada means identifying what you need. For instance, some online car dealers specialize in specific models, while others focus on higher mileage or repair-shop resold vehicles. The key is to consider the type of vehicle you want and to research the online dealer that offers this type of vehicle. Once you know where to find the vehicle you want, online, it's time to consider what the online car dealer will offer. Some online dealers will let you view the CARFAX report for a vehicle, others provide a complimentary warranty, while others offer free delivery (or reduced delivery fees). The key is to find an online dealer that provides some sort of warranty or trial period of at least seven days, to give you an opportunity to confirm that the car you bought is what you wanted and expected.
This depends on your needs. When comparing online car dealers, you'll want to take a look at the types of cars they sell, location (so you don't have to pay extra for delivery fees), complimentary warranty and a trial period of at least 7 days.
Yes. When buying from an online car dealer you are not required to obtain financing through that dealer. Like all vehicle purchases, you can get a car loan from any type of lender, including an online car dealer, a bank, a credit union or an online car loan lender. In fact, you are better off securing your vehicle financing before you shop and finalize a car purchase. Not only does a prequalification help you properly budget, but it allows you to negotiate prices and perks, without fear of getting dinged with higher car loan interest rates.
While it's true that Carvana does not currently operate in Canada, there are several similar online car dealer platforms you can try instead, including Clutch and Canada Drives.
As a baseline, you may want to look for features such as a competitive price, a reasonable exchange program, a longer test drive period (7 days or more) and a decent level of warranty coverage (90 days is typical for online dealers). Pick and choose what's most important to you and select your dealer accordingly.
Yes, there are alternatives to Autotrader Canada. But to understand the alternatives, it's best to identify the three main categories of online car shopping:
General marketplaces, like Facebook and Kijiji Autos
Automotive marketplaces, like Autotrader Canada and CarGurus
When looking for an alternative to Autotrader Canada, you may want to expand your search to include general marketplaces, as well as online car dealers. This gives you the largest inventory to select from and increases your options for negotiating a better price along with better terms.
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.
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