Since the pandemic, many people have shifted to buying cars online instead of shopping with a traditional dealer. Learn more about how to buy a car online in Canada and compare some of the best places to shop. Follow our 7 easy steps to buying a car online and having it delivered to your doorstep.
7 steps to buying a car online
1. Pick a platform for buying a car online
Online dealers
Online car dealers offer an inventory of certified used vehicles, so you can shop for a car online and have it delivered to your house. Most online dealers also offer warranty coverage and a free trial period or money back guarantee to make sure you like the car. Haggling on prices is usually not allowed and vehicles are typically newer than 2012.
Online automotive marketplaces
These are digital platforms that let you compare the prices of multiple cars from different dealerships, all in one place. All you need to do is input the features you want in a car and you’ll be matched with a list of suitable vehicles. Some platforms offer “Buy from home” options so you can shop completely online.
Browse the inventory based on key parameters such as vehicle year, make, model, mileage, transmission and more.
Online dealers provide instant access to comprehensive info about the car by including the CARFAX report and inspection report.
These reports are typically not available with online car brokers like AutoTrader.
3. Reserve the car you’re interested in or proceed to purchase
Open the website and choose the ad for the car you want. Click to purchase and indicate if you’ll pay in full or if you want to finance the car (see below for an example from Canada Drive’s website).
Some dealers may require you to pay a deposit to hold the vehicle. Clutch, for example, requires a $100 deposit.
4. Fill out the online application
Fill out an application with online dealers in less than 10 minutes. Your application may take longer if you need financing.
Automotive marketplaces such as AutoTrader may require a more extensive application.
5. Set up financing (if not paying in cash)
Fill out an application for car financing and determine your monthly payment.
With financing, you’ll pay a set interest rate on a regular monthly payment over a set number of years until your loan is paid off in full.
6. Buy the car and have it delivered to your doorstep
Buy the car and have it delivered in 1 to 3 business days with online car dealers. You may need to pay a delivery fee depending on where you live.
You can also choose to pick up the car from the facility.
Before delivery, most dealers will arrange insurance and registration for you.
Have your driver’s licence ready and your documents in place when buying from an automotive marketplace.
7. Test own your car for a specific time
Many online dealers offer trial periods between 7 and 14 days (with limits on mileage). Some also offer exchanges for 30-60 days.
Return the car if you’re unhappy with it. The online dealer will pick up the car.
Some conditions apply – for example, the car can’t be modified, in an accident or past a certain mileage.
Pros and cons of buying a car online in Canada
Pros
Take advantage of these benefits when buying a car online in Canada:
No aggressive sales tactics. Shop the online inventory from your own home and pick the car you want on your own terms.
Return and exchange period. Test drive your vehicle and return it within 7-14 days with online dealers. Some automotive marketplaces may not offer a return period.
Complimentary warranty. Get a 30- to 90-day warranty depending on the online dealer.
Thorough car inspection. Rest easy knowing the car you buy will come with a full inspection and CARFAX report in most cases.
Delivery to your door. Browse the online inventory for a car and have it delivered straight to your doorstep.
Hassle-free. Skip multiple test drives and long drawn-out interactions with sellers by buying your car directly from an online dealer.
What to watch out for when buying a car online
Watch for these drawbacks when buying a car online in Canada:
Newer used cars only. Most online dealers only offer vehicles that are 2012 or above. You may be able to get older cars with an online marketplace.
Non-negotiable prices. Most online inventories come with set prices so you can’t haggle down.
No test drives. You won’t be able to test drive multiple cars at one time like you can with an in-person dealer.
What documents do I need to provide to shop for a car online in Canada?
Government-issued ID
Driver’s licence, passport or other form of ID.
Application form
Provide personal information such as full name, home address, phone number and other contact details.
Payment information
Pay by cash, credit card or bank draft in most cases if you’re paying for your car outright.
Bank account information
Supply direct deposit information to pay for your car or make your monthly repayments if you get in-house financing.
Additional information required if you get in-house financing:
Application form
Fill out a secondary application form for financing, which will typically require more thorough information.
Employment or income information
Pay stubs, bank deposits, letters of employment, etc.
Credit check
Consent to a credit check so your online seller can assess your creditworthiness.
Bank account information
Supply direct deposit information to pay for your car or make your monthly repayments if you get in-house financing.
How to pay for your car
There are 3 main ways you can pay when buying a car online in Canada:
Pay in full. Use your own savings or pay with a credit card.
Finance with an online dealer. Fill out an application for financing with your dealer online, usually at the point of purchase.
Finance with your own lender. Apply for financing from a bank or private lender before you start shopping.
Example of the process if you pay in full with online dealer Canada Drives:
Should I get a car online or at an in-person dealership?
The decision to buy online vs at an in-person dealership will depend on what type of buying experience you want. Compare online vs in-person dealerships to decide which option might be the best fit for you.
Online dealers
In-person dealerships
Examples
Clutch, Canada Drives, Carooga CarDoor
Local dealers near you
Prices
Cheaper than in-person dealerships due to lower operating costs
Non-negotiable prices
Potentially more expensive than online dealers and marketplaces
Negotiable prices
Inventory
Used cars only, typically newer than 2012
Usually hundreds of cars to choose from
All on one webpage
New and used cars
Hundreds of cars to pick from
Usually need to visit in person to see inventory with each dealer
Buying process
Convenient, hassle-free, completely online
Visit and test drive in-person
May be able to see inventory online in some cases
Trial period
Varies by dealer, usually 7-14 days
No trial period unless specified by dealer but test drives allowed
Financing
In-house financing, bank loans and private loans
In-house financing, bank loans and private loans
Extra features
Buying process is completely online
At-home delivery
In-person test drives
No online interactions required
At-home delivery in some cases.
Bottom line
Online sellers offer an easy and convenient way to purchase a vehicle without ever leaving your house.
You can pay with in-house financing, external financing or by paying your car off with your own savings or credit card.
Once you pay, your car will be delivered to your doorstep and you’ll often have a promo period to test drive the car before the sale is finalized.
Frequently asked questions
The best site for buying a car online in Canada will depend on factors such as your location, what inventory is available and how much you can afford to pay. Compare used car sites to learn more about available options and which company might be the best fit for you.
Online dealers mostly specialize in used cars. Some manufacturers, like Tesla, do offer an online buying process for new cars. Online automotive marketplaces also have new cars that can be delivered to your house depending on where you live.
All of the online dealers listed in this post are reputable options that you can use to buy a car. You can also look for local dealerships with solid customer reviews on Google if you want to buy a car in person but you're not sure where to shop.
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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