Buying a used car in Ontario can be a great way to dodge much of the cost of depreciation. But if you want to make sure you\u2019re not stuck with a lemon or paying more than you need to, there are a few things you should consider first.<\/p>
The Ontario Ministry of Transportation has specific requirements around buying a used car. There are a number of documents you\u2019ll need to gather to buy the car and complete your car\u2019s registration in Ontario before you can hit the road.<\/p>
We\u2019ve created this comprehensive guide to help you navigate the used car buying process in Ontario while avoiding pitfalls and potentially saving money along the way.<\/p>
From budgeting to shopping to registration \u2013 follow these 7 steps for how to buy a used car in Ontario.<\/p>
Do some calculations to figure out how much you can afford to spend before you start shopping. Aside from the purchase price of your vehicle, you should think about additional car expenses<\/a> such as loan interest, sales tax, car insurance, registration, maintenance and gas costs. You should aim to spend less than 10% to 15% of your total income on buying a car in Ontario privately or at a dealership.<\/p> You may want to add all of these expenses together to get the total cost of car ownership.<\/p> You\u2019ll be able to buy a used car in Ontario from a dealership, private seller or online broker. There are pros and cons to each type of seller.<\/p> You can buy a used car in Ontario from a private seller, in-person dealership, online car broker or online dealer.<\/p>Extra costs of buying a car as is in Ontario<\/strong><\/h4>
<\/th> Typical cost in Ontario<\/th><\/tr><\/thead> Purchase price<\/strong><\/td> $1,000 to $40,000<\/td><\/tr> Used car interest rates<\/strong><\/td> APR typically between 8% and 10%<\/td><\/tr> Sales tax<\/strong><\/td> 13%<\/td><\/tr> Licensing fee<\/strong><\/td> Either $32 or $59<\/td><\/tr> Car insurance<\/strong><\/td> $1,000 to $2,500 per year (average cost in Ontario is $1,796 )<\/td><\/tr> Scheduled maintenance<\/strong><\/td> $500 to $700 per year<\/td><\/tr> Emergency repairs<\/strong><\/td> $50 to $6,000<\/td><\/tr> Gas<\/strong><\/td> $50 to $200 per month<\/td><\/tr> Actual costs will vary based on your driving record and what type of car you have<\/em><\/td><\/tr><\/tbody><\/table> 2. Decide where in Ontario to buy the car<\/h3>
Where to buy a used car in Ontario<\/h4>
Seller<\/th> Where to find<\/th> Pros<\/th> Cons<\/th><\/tr><\/thead> Private seller<\/td> Sites like Craigslist, Kijiji or Facebook Marketplace<\/td> In-person dealership<\/td> Find a dealership near your location in Ontario<\/td> Online car broker<\/td> Sites such as Auto Trader, Canadian Black Book and Carpages.ca<\/td> Online dealer<\/td> Sites such as Clutch<\/a> and CarDoor<\/a><\/td>