There are a number of ways to get your car home once you\u2019ve 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\u2019s also possible to have your vehicle professionally shipped if you\u2019re willing to pay for the service. The last two options may be a good fit if you don\u2019t want to get temporary insurance out of province.<\/p><\/div>\n <\/div>\n<\/li><\/ul>
Representative example: Buying a car out of province as an Ontario resident<\/h3>
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\u2019s 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.<\/p>
When he\u2019s 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\u2019s name. Corey then drives the vehicle back to Ottawa and begins the process of registering and insuring it in Ontario.<\/p>
Overall costs for Corey to purchase the vehicle<\/h4>
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.<\/p>
- Purchasing the vehicle:<\/strong> $6,500 (loan + 6.5% interest)<\/li>
- Getting temporary registration and insurance:<\/strong> $75<\/li>
- Acquiring a safety standards certificate:<\/strong> Costs vary by motor vehicle inspection station, but you may find rates between $80 and $200<\/li>
- Updating or fixing issues with the vehicle:<\/strong> Costs vary and can include anything from needing new tires to getting a windshield crack repaired<\/li>
- Vehicle registration and licence plate in Ottawa:<\/strong> $59<\/li>
- Paying HST on vehicle price:<\/strong> $845<\/li>
- Insurance in Ottawa:<\/strong> $1,200 to $1,800 for one year<\/li><\/ol>
Sales tax when buying a car out of province as an Ontario resident<\/h4>
Whether you buy a new or used car that\u2019s outside Ontario, 13% HST will apply to your purchase. If you buy a used car from a private seller in another province, you don\u2019t 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\u2019s in another province, talk to the sales rep to clarify whether Ontario\u2019s HST has been incorporated into the purchase price. Some dealers will arrange this, while others may expect you to cover the difference yourself.<\/p><\/div>
What to consider when buying a car in another province<\/h3>
Consider this list of expenses if you\u2019re thinking of buying a car in another province. This list includes costs you would incur even if you buy a car within your province.<\/p>
- Purchasing the vehicle.<\/strong> You may be able to pay for your vehicle outright to save money on interest. If you can\u2019t 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\u2019re interested in.<\/li>
- Getting temporary insurance and registration.<\/strong> If you intend to drive your vehicle home, you\u2019ll 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.<\/li>
- Transporting your new car home<\/strong>. Depending on where you intend to buy your vehicle, you\u2019ll 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\u2019ll usually pay a very high price to ship your vehicle home.<\/li>
- Getting a safety inspection.<\/strong> 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.<\/li>
- Registering and insuring your vehicle.<\/strong> Registering and insuring your vehicle in your province of residence can cost hundreds or even thousands of dollars. You\u2019ll often pay between $60 and $150 to register your vehicle. You\u2019ll then have to pay for a year of insurance upfront (which usually costs over $1,000).<\/li>
- Paying for GST\/HST.<\/strong> You\u2019ll 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.<\/li><\/ul>