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buying a car in ontario

Buying A Car In Ontario: All You Need to Know

If you've recently earned your G2 or G-class driver's licence in Ontario, you're most likely getting ready to purchase your first vehicle.

Although buying your first car can be an undeniably exciting time, buying a car in Ontario is a huge financial undertaking. Even if it’s the best time to buy a car, you should never rush the process and always do your fair share of research before signing on the dotted line at your local dealership.

However, with a little bit of planning and research, practically anyone can find the ideal vehicle in Ontario.

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Continue reading to learn more about buying a car in Ontario.

Three terms to learn before buying a new vehicle in Ontario

You should take the time to familiarize yourself with the following terms before buying a car in Ontario or anywhere else in Canada:

Term #1 — Manufacturer's suggested retail price

Also commonly referred to as the MSRP, the manufacturer's suggested retail price is the price that a car company sets for a model. However, just because the manufacturer suggests this price doesn't mean you'll end up paying the MSRP. In order to attract business, many car dealerships sell vehicles for less than the MSRP.

However, car buyers in Ontario should note that the MSRP does not include additional costs like GST, PST and dealership fees. Be sure to consider these additional costs during the car buying process.

Term #2 — Down payment

Much like a down payment on a property, a down payment on a car is the amount that you pay prior to finalizing the vehicle purchase. The size of a car down payment can vary; however, most drivers opt for a 10% to 20% down payment.

Car down payments aren't legally required in Ontario, so you don't need to make one. That being said, making a car down payment can be incredibly beneficial for drivers in Ontario. This is due to the fact that making a down payment can result in lower interest rates and give you access to unique discounts and deals.

Term #3 — Auto insurance in Ontario

Auto insurance is a form of (in this case, personal) coverage that protects policyholders from various risks that occur on and off the road.

There are several different types of auto insurance coverages in Ontario that financially protect drivers from a variety of events. 

For instance, third-party liability coverage financially protects drivers by covering all (or a portion) of their legal fees after being involved in a collision in which they were deemed "at fault" (an insurance term for responsible). 

Other forms of coverage, like comprehensive insurance, protect policyholders from off-road risks, like falling objects.

Although you don't need auto insurance to purchase a car, you are legally required to buy sufficient auto insurance if you wish to operate your vehicle in Ontario (or any public roadway in Canada, for that matter). So, if you intend on buying a new car in Ontario, you should compare car insurance companies and quotes with a reputable insurance brokerage, like Surex.

Five steps to buying a car in Ontario

Finding the right vehicle in Ontario is easy if you take the time to form a detailed game plan.

If you don't have time to put together a strategy, that's ok! We've put together a thorough list of the five steps to buying a vehicle in Ontario:

Step #1 — Set a budget

If you are currently thinking about buying a car in Ontario, the first thing you need to do is set a reasonable budget for yourself. Setting a reasonable budget will allow you to find a car that meets your needs without putting too much financial pressure on yourself.

Bonus — While setting a budget, be sure to keep additional expenses in mind, like registration, maintenance and car insurance.

Step #2 — Find car in your price range

Now that you know how much you can spend, it's time to start searching for models in your price range. We suggest comparing models online before visiting dealerships. Doing this will help you make a knowledgeable decision down the line.

Step #3 — Visit dealerships

Visiting car dealerships is always exciting, as it gives you a chance to get up-close and personal with your potential new ride. While visiting dealerships, take the time to chat with one of their sales representatives about models that have caught your eye. You can then sit down with them and figure out if it meets all (or enough of) your criteria.

Step #4 — Purchase the vehicle

After you've made a decision, it's finally time to buy your new car! 

However, drivers should always be ready to negotiate — most car dealerships are able to offer generous discounts if you know how to ask. 

Once you and the sales representative have come to a mutual agreement and you've signed on the dotted line, you've officially purchased your first car. Congratulations! 

But, there are some tasks that you need to take care of before you can buckle up and hit the road.

Step #5 — Prepare the necessary documents

Before you get to hit the road, you'll need to prepare your ownership registration, get a licence plate and purchase auto insurance.

If you're having difficulty finding or comparing competitive car insurance quotes in Ontario, you should team up with a reputable insurance brokerage, like Surex.

Save as much as 25% on car insurance in Ontario when you bundle your coverage with a Surex insurance provider

Buying car insurance is a vital part of owning a car in Ontario. However, that doesn't mean that it has to be complicated.

If you need help finding quality quotes from the top car insurance companies in Ontario, be sure to reach out to your personal Surex insurance advisor.

At Surex, we pair you with your very own insurance advisor who can help you compare quotes, adjust your coverage and much more. Whether you are shopping for auto insurance coverage for the first time or the fifteenth time, we're always happy to help.

Contact one of our advisors today to receive competitive quotes from the best auto insurance companies in Canada, including Intact.

While chatting with your personal insurance advisor, don't forget to ask about the benefits of bundling multiple policies with the same provider! The savings can be as high as 25%.

Find the best insurance rates today.

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