{"id":783051,"date":"2019-05-25T15:15:10","date_gmt":"2019-05-25T19:15:10","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=783051"},"modified":"2026-04-14T22:31:59","modified_gmt":"2026-04-15T02:31:59","slug":"buying-a-car","status":"publish","type":"page","link":"https:\/\/www.finder.com\/ca\/car-loans\/buying-a-car","title":{"rendered":"How to buy a car in Canada"},"content":{"rendered":"

Buying a car in Canada can be a relatively pain-free process if you know where to start. Learn more about how to buy a car in Canada \u2013 including where you can get financing and what steps you\u2019ll need to follow to finalize your purchase.<\/p>

How to buy a car in Canada in seven steps<\/h3>

The best way to buy a car in Canada is to follow this step-by-step process:<\/p>

1. Calculate how much you can afford<\/h4>

Before you begin your search, calculate how much you can afford to spend on your car. Ideally, the amount you spend on a car should be determined these three factors:<\/p>

  1. Down payment.<\/strong> Think about how much you can afford to put down upfront on your new car. Keep in mind that the more you can spend on a down payment, the less you\u2019ll pay in interest and the lower your monthly payments will be.<\/li>
  2. Monthly payments.<\/strong> Make a budget to find out how much you can afford to pay for your car each month. Many experts agree that you should avoid spending more than 10% of your take-home pay on your monthly payment.<\/li>
  3. Other car ownership expenses.<\/strong> You\u2019ll want to consider other costs that come with car ownership<\/a>, such as insurance, gas, maintenance and registration fees. A good rule of thumb is to spend less than 15% of your annual income on all vehicle-related expenses combined.<\/li><\/ol>

    2. Narrow down your options<\/h4>

    The best way to buy a car in Canada is to narrow down your options in advance. Think about the following features to get a clear picture of what you want in a vehicle:<\/p>

    1. Price.<\/strong> Set a budget and stick to it. This will help sort out which cars you can truly afford and which are out of your price range.<\/li>
    2. Vehicle type.<\/strong> Think about what type of vehicle will suit your needs \u2013 whether that\u2019s a compact car, SUV, pick-up truck or minivan.<\/li>
    3. Condition.<\/strong> Figure out if you want to buy a new car with lower kilometres and a warranty or a used car with fewer upfront benefits but a lower price tag.<\/li>
    4. Fuel type:<\/strong> Consider the length of your commute and decide whether you\u2019re looking for a gas-powered vehicle or a hybrid\/electric car.<\/li>
    5. Manufacturer:<\/strong> Decide on which car brand you want to buy. If you\u2019re not sure, find out which car brands have a solid reputation before you hit the dealership.<\/li>
    6. Mileage:<\/strong> Figure out how much mileage you\u2019re willing to live with when buying a used car. Remember that higher mileage may mean more repairs while lower mileage vehicles will typically cost more upfront.<\/li>
    7. Extra features.<\/strong> Decide which premium features you want in advance. These can include Bluetooth, a sunroof and back-up cameras.<\/li><\/ol>