How to buy a used car in Alberta

Alberta has its own set of rules and regulations for how to buy a used car. Find out more about how to navigate the used-car buying process in Alberta and get province-specific information all in one place so that you don’t miss out on any important details.

What should I know about buying a used car in Alberta?

The documents required when buying a used car in Alberta varies between private sellers and dealerships.

Buying a used car in Alberta from a private seller

You’ll need a standard bill of sale, which is an original document that certifies the transfer of property. The bill of sale must include:

• Both the seller and buyer’s full name and address
• Vehicle identification number (VIN)
• The vehicle’s make, model, series, style, colour and year
• How much the vehicle costs
• The date of purchase and date of agreement
• Both the seller and buyer’s signatures

• Optional information on the bill of sale

  • Odometer reading at the time of sale
  • Contact information (phone or email, etc.) for all people involved
  • Any liens currently on the vehicle
  • Payment method (cash, bank transfer, cheque, money order, etc.) and
  • Any payment terms and whether or not the vehicle was paid for in full at the time of selling
  • Where the vehicle was most recently registered
  • Signatures of witnesses to the sale
  • Any special conditions of the sale

Other documents and steps to consider when buying a used car from a private seller

• Check their ID and vehicle registration certificate, which is proof that they own the car.
• Get a vehicle information report from Alberta Motor Association (AMA). This contains information such as registration dates and locations, odometer reading and number of liens in Alberta.
• Search the Personal Property Registry if you want details on the liens in Alberta.
• Get a CARFAX report, which details the vehicle’s history. This contains information such as liens, service records, odometer reading and accident history. (A CARFAX report checks for liens nationwide within the past year. An AMA report checks for number of liens in Alberta, while a Personal Property Registry report gives detailed information on the liens in Alberta.)
• Get a safety inspection from a Motor Vehicle Inspection facility if it’s a salvage or out-of-province vehicle.
• Get an inspection done by a trusted mechanic.
• Check if the car was reported as stolen by visiting the Canadian Police Information Centre database.

Buying a used car from a dealer

If you’re buying a used car from a dealer in Alberta, you’ll need the following:

• Comprehensive bill of sale. This provides details about the car and sales agreement to protect you from unauthorized, surprise costs. All fees and charges must be included on this. It should include buyer/seller information, vehicle information, payment information, vehicle history (which includes car inspection) and trade-in information.
• Deposit agreement. This contains details about the deposit, down payment or partial payment you paid.
• Consent to start work. If applicable, you’ll need to give consent via an email, phone call or text message before the dealership does any work on the car.

Used car tax in Alberta

If you’re buying a used car from a private seller, you do not pay any tax. If you’re buying a used car from a dealership, you’ll pay 5% GST.

Registering a used car in Alberta

Visit a registry agent to register your used car. You’ll need the following:

• Bill of sale
• Proof of insurance
• ID, such as your driver’s licence
• Inspection report if it’s a salvage car or out-of-province car

Must read: Car loans to finance a used car

Steps to follow before buying a used car in Alberta

1. Settle on a budget

Decide how much you can reasonably afford to spend on a car before you start shopping. On top of how much the car you want costs, you should think about additional car expenses such as interest, sales tax, insurance, registration, maintenance and gas costs. You may want to aim to spend less than 10% to 15% of your income on buying a used car in Alberta.

Expenses to consider when buying a used car in Alberta

Consult the table below to make sure you can afford the cost of buying a used car in Alberta:

Expense	Typical cost in Alberta
Purchase price	$1,000 to $40,000
Interest rates	APR typically between 8% and 10%
Sales tax	5% at dealerships, 0% for private sales
Car insurance	$700 to $2,000 per year
Scheduled maintenance	$500 to $700 per year
Emergency repairs	$50 to $6,000
Gas	$50 to $200 per month
Registration	Around $90 per year
Actual costs will vary based on your driving record and what type of car you have

2. Decide where to buy your car

You can buy a used car from a dealership, private seller or online broker in Alberta. The provider you go with will affect the process you need to follow to carry out your purchase.

• Dealer. You’ll usually pay more if you shop with a dealer because there’s less risk involved and it can be more convenient.
• Private seller. You may pay less with a private seller, but it can take more time to compare cars and there’s a higher chance that you’ll end up with a lemon.
• Broker. You can easily compare prices with an online broker, but it may be more difficult to know if you’re shopping with a legitimate seller when you settle on a price.

• Where to buy a used car in Alberta

  Seller	Where to find	Pros	Cons
  Private seller	Sites like Craigslist, Kijiji or Facebook Marketplace	Cheaper Large inventory	Higher risk of fraud or of buying a defective vehicle More work to shop around Difficult to get financing
  In-person dealership	Find a dealership near your location in Alberta	Lower risk of fraud with legitimate dealers Dealership may provide financing Test drive several cars at once	More expensive Limited inventory (only what’s on the lot)
  Online car broker	Sites such as Auto Trader, Canadian Black Book and Carpages.ca	Large inventory Easier to get financing Easy to compare cars	Potential for hidden fees Greater chance of fraud with online dealers
  Online dealer	Sites like Canada Drives	Browse used cars online and get your chosen car delivered to your door “Test own” for 1 to 2 weeks Potentially lower vehicle prices than in-person dealerships	Prices are usually non-negotiable Limited to the dealer’s own inventory

  Must read: Compare the best used car websites in Canada

3. Decide how to pay for your used car in Alberta

Think about whether you want to get financing or use your own savings to pay for a car. Be aware that you can usually only get financing when you shop with a dealership or auto broker (and not typically with a private seller). If you go the financing route, you may want to get pre-approved for a loan before you start shopping so you know how much you’ll have to spend.

• Different ways to pay when buying a used car in Alberta

  You can pay for your used car in Alberta with the following types of financing:

  • Pay with your own savings. Use your savings to pay for your car so that you don’t have to pay interest on a loan.
  • Take out an auto loan. Apply for financing with the bank or a private lender and pay it back over a set term with interest.
  • Apply for dealership financing. Get financing directly from the dealership if you want the convenience and don’t mind paying higher interest rates.

Financing options for buying a used car in Alberta:

Steps to follow when buying a used car in Alberta

4. Compare your options and negotiate prices

Compare car listings online and reach out to private sellers and dealerships to see if they’re willing to negotiate on price. You may be able to ask your seller to price match with similar cars (same mileage/condition) by sending them ads you find online. Follow these tips to negotiate used car prices in Alberta.

• Tips to negotiate used car prices

  • Price match in advance. Get prices for similar cars online and see if your seller will price match a better deal elsewhere.
  • Get pre-approved for financing. Apply for financing before you shop and get pre-approved so that you know how much you have to spend.
  • Know when to walk away. Decide how much you’re willing to spend and don’t be afraid to keep shopping if the seller won’t compromise on price.

5. Schedule test drives and inspections

Test drive and inspect your used car to make sure it’s in good working order. This can involve checking essential components such as the engine, tires, steering and electrical systems.

You may also want to schedule an inspection with a licensed mechanic, check the vehicle identification number (VIN) and/or request a vehicle inspection report before buying a used car in Alberta.

• Mandatory used car inspections in Alberta

  Most car inspections are voluntary in Alberta, but you’ll be required to get an inspection in the following situations:

  • Out-of-province vehicle inspection. You’ll need to get this type of inspection if you’re registering an out-of-province vehicle for the first time in Alberta.
  • Salvage vehicle inspection. You need to get this type of inspection if the used car you want to register in Alberta was previously written off by an insurance company.

  If a vehicle is designated as non-repairable, it can’t be registered and can only be sold as scrap or dismantled for parts.

Steps to follow after buying a used car in Alberta

6. Pay for your car

You’ll need to pay for your vehicle with your savings or with financing. For savings, you’ll usually pay in cash or with an Interac e-Transfer or bank transfer. For financing, your bank or lender will deposit the money into your account and you’ll use this to pay for your car. You’ll then need to repay your loan with regular monthly payments over an agreed-upon term (usually 3-5 years).

• Tax considerations for used cars in Alberta

  You won’t need to factor in tax when buying a used car in Alberta except for when you buy from dealerships (which charge 5% GST). Unlike other provinces, you won’t have to pay taxes when buying used cars from private sellers in Alberta.

7. Get your car registered

Registration in Alberta currently costs around $90. To register a used car in Alberta, you’ll have to go to a registry agent near you with the following documents:

• Government-issued ID. Show your licence or other government-issued ID.
• Proof of ownership. Present proof of ownership such as a lease, bill of sale, probated will or letter of administration.
• Proof of insurance. Submit proof of valid insurance for the vehicle that includes the name of the person requesting the registration.
• Mandatory inspections (as required). You’ll need to submit any mandatory inspections such as out-of-province or salvage vehicle inspections.

8. Organize insurance

The average cost of car insurance in Alberta is $1,316, but you could pay anywhere from $700 to $2,000 per year to insure your car. You’ll need the following documents to get insurance:

• Government-issued ID. Show your licence or other government-issued ID.
• Proof of ownership. Present proof of ownership such as a lease or bill of sale.

How to choose a used car that fits your needs

Look for a car with the following features to make sure you get a vehicle that fits your needs:

• Fit for purpose. Buy a car that makes sense for your budget and lifestyle and that will accommodate your passenger and storage needs.
• Low mileage. Make sure your used car has low mileage (usually 120,000km or less) to avoid getting stuck with large maintenance bills.
• Spotless vehicle inspection. Get an inspection and ask for old maintenance records to make sure your used car is in good condition and was well taken care of.
• Priced to sell. Check sites like Kelley Blue Book and Canadian Black Book to figure out how much your car should cost and don’t pay more than that.
• Passes a VIN check. Use a site like CarMax to check the vehicle identification number for the car you want to buy to make sure the sale is legitimate.
• Eligible for financing. Double-check that the car you want to buy is eligible for financing if you plan to borrow money for buying a used car in Alberta.

How to buy a used car in Alberta if you live out of province

You’ll need to follow some additional steps if you’re from another province but want to buy a used car in Alberta.

• Get an out-of-province inspection. You’ll usually need to get an out-of-province inspection for any used car you bring into your province from Alberta.
• Fix identified issues. You’ll typically have to pay to fix any issues flagged in the inspection before you can register your used car in your province.
• Provide paperwork. Present proof of ID and ownership (such as a bill of sale) to register your vehicle in your own province.
• Pay taxes. Pay the taxes required by your province to import a vehicle from Alberta (usually between 5% and 15%, depending on the province).

Dive deeper: Buying a car out of province

Bottom line

Learn more about the steps you should take before, during and after buying a used car in Alberta. Learn where to buy a car, how to secure financing, what to consider when you’re ready to buy and how to lock in registration/insurance in Alberta. You can also consult our used car checklists to make sure you have everything you need to get the car you want.

Frequently asked questions

• Should I put a deposit on a used car in Alberta?

  You can, but it’s not advisable. This is because sellers in Alberta aren’t required by law to return your deposit if you decide not to purchase a used vehicle. However, you can ask your seller to provide you with a formal document that says the deposit is refundable if you want cover against any losses.

• What is the best time of year for buying a used car in Alberta?

  You may be able to find good deals on used cars at the end of the year, on Black Friday and around May long weekend in Alberta.

• How much tax will I need to pay for a used car in Alberta?

  You’ll need to pay 5% tax if you purchase a used car from a dealership. Your purchase will be tax-free if you buy a used car from a private seller.

• Do I need insurance before buying a used car in Alberta?

  You don’t need insurance to buy a used car in Alberta, but you will need it to drive your car home. For this reason, you may want to ask someone to drive you to the insurance bureau so you can get all of your paperwork in order before you drive the used car you buy. You may also be able to arrange temporary insurance with some insurers in advance.

• What is a curbsider and how do I avoid them?

  Curbsiders are non-registered car sales businesses that don’t have an Alberta Motor Vehicle Industry Council licence. You won’t get consumer protection if you buy a vehicle from a curbsider so it’s best to avoid them. You can usually spot them if they post multiple ads for different vehicles as a private seller.