Get a free, no obligation personal loan quote with rates as low as 9.99%
Get Started You can apply with no impact to your credit score

Buying a car online offers the convenience of browsing and purchasing from the comfort of your home. But before you embark on your online car shopping experience, it’s important to be well-informed about the process, including best practices and potential drawbacks. Read on to find out everything you need to know about buying a car online to ensure a successful transaction.


Key Points

  • Buying a car online is easy thanks to the growing number of online resources available, like AutoTrader and Clutch.
  • Online vehicle buying platforms offer many resources and tools, including vehicle history reports and pre-qualification capabilities.
  • Before you buy a car online, make sure you use a reputable source, a secure method of payment, and obtain a detailed report on the vehicle.

Can You Buy A Car Online? 

Yes, you can buy a car online. In fact, you can do everything from browsing, to finalizing a purchase, to arranging financing, and having the car delivered right to your door. 

Generally speaking, you can classify buying a car online into two different categories: online marketplace and full-service.

Online Marketplace – When people talk about buying a car online they are typically referring to perusing resale sites, marketplaces, and even websites that belong to dealerships in their area. With this option, you narrow down your search by looking for specific makes, models, features, and location. Once you find what you’re looking for, you’ll visit the seller or dealership to test drive and finalize the purchase.

Full-Service – In the past couple of years buying vehicles online has evolved. You can now buy a car completely online, from start to finish. Companies like Clutch, and AutoTrader.ca allow consumers to find the right vehicle, apply for financing, and have the vehicle delivered to them all from their own homes.

Learn more: Should You Buy Your Next Car Online Or At A Dealership?


Where Can You Buy A Car Online?

Several online sites are available that allow potential buyers to search for vehicles in their cities and provinces. Here are a few resources to consider:

Clutch

Clutch is an online platform that makes finding and buying a car easy. You can browse through over 1,000 used vehicles to find one that fits your needs. Their fully online experience means you don’t need to deal with sales associates and never have to leave your house. 

You can get pre-qualified for financing online, purchase the car you want, and set up a time for it to be delivered. During the delivery of your vehicle, a Clutch concierge will have all the necessary paperwork for you to sign.

Clutch Features

  • 210 point inspection
  • Optional 3-month/6,000km warranty or optional extended warranty
  • Home delivery
  • 10 day/750 km returns

AutoTrader

AutoTrader is one of the most popular car shopping websites in Canada. The platform offers a vast inventory of new and used cars, trucks, SUVs, and other types of vehicles from both dealerships and private sellers. You can use the site to compare prices and specifications to make an informed car-buying decision.

AutoTrader also lets you pre-qualify for a car loan so you understand how much you can afford with ease.

AutoTrader Features

  • CARFAX history reports
  • Warranty programs
  • 30-Day/1,500km warranty (available on select inventory)

How To Buy A Car Online In Canada

To buy a car online in Canada, follow these steps:

Step 1. Determine How Much You Can Afford

Before searching for a car, you should first find out how much you can afford. This includes the car loan costs as well as the additional car expenses like fuel and car insurance.

Step 2: Research 

Browse online listings and review their specifications and prices to find cars that suit your needs and budget.

Step 3. Get Pre-Approved For Financing

Getting pre-approved for financing can save you from falling in love with a car that is way out of your budget. You can choose to get pre-approved from your dealership or from your local bank. 

Step 4: Contact the Seller

Reach out to the seller or dealership if you have additional questions about the vehicle or would like to see more photos. Depending on how far the car is located, you may want to make the trek to take the car for a test drive, if possible. You’ll also finalize the price of the car before following through with the transaction.

Step 5: Get Financing

Find out what your financing options are and compare each to see which one is most affordable and suits your financial situation best. Then, you’ll complete the lender’s application form and provide all necessary documents, which may include the following:

  • Photo ID to verify your identity (ie. driver’s license or passport)
  • Proof of residency to show that you reside in Canada (ie. utility bill or lease agreement)
  • Proof of income to show that you earn enough to cover your loan payments (ie. bank statements, pay stubs, or employment letter)

Find: Best Car Loans In Canada

Step 6: Complete Paperwork

In addition to the loan application, there may be other paperwork to fill out, such as the bill of sale and insurance forms. Since you’re buying online, this paperwork can be filled out and submitted electronically.

Step 7: Arrange For Vehicle Delivery

Once the purchase agreement is complete, you can schedule the delivery of the vehicle to your home


Advantages Of Buying A Car Online

When it comes to buying your next car online, here are the main advantages you should consider. 

  • Easy To Filter Results: You can search for a vehicle that matches your specifications exactly. You may even be able to set up notifications that alert you when cars that match your criteria are available.
  • No Haggling: When you buy a car online, you typically don’t have to speak to anyone, or not at least until the deal is almost complete.
  • Get Pre-Qualified For Financing: Many online platforms also offer pre-qualification for financing. This means you’ll know exactly what you can afford before you start looking.
  • Return Policy: When you buy a car completely online, you’re taking a risk. This is why many online companies offer returns within a set period of time, typically 10 days.
  • Have The Vehicle Delivered To You: Once you’ve finalized your vehicle purchase, you can arrange to have it delivered directly to you.

Disadvantages Of Buying A Car Online

Buying a car online is not always going to be the right option for everyone. Here are some of the main disadvantages that you should be aware of.

  • Limited Price Negotiation: While not having to deal with a sales associate might be a good thing, it also means you may not be able to negotiate a better price. Furthermore, many sites that sell cars online won’t negotiate on the price at all.
  • Trade-in Value Can Be Limited: While it’s great that you can trade in your old vehicle when purchasing a car online, you might not get offered the best price. Make sure you know what your old car is worth.
  • Potential Shipping Fees: Having a car delivered straight to you after you purchased it online may be convenient, but make sure you know what the shipping costs are and if there are any additional fees.

Cost Of Buying A Car Online

Some of the costs of buying a car online are the same as what you would be faced with if you purchase from a dealer. However, online car buying may also come with some unique costs. Here are the various costs you may have to cover when purchasing a car online:

  • Down Payment: This is the amount of money you put toward the vehicle. It lowers the amount you need to borrow and can lessen the interest you pay over the lifetime of the loan.
  • APR (Annual Percentage Rate): Most Canadian car loans come with interest and fees. Combining these two gives you the APR. The higher the APR, the more expensive your car loan will be, and vice versa.
  • Term: The car loan term represents the length of time you have to repay your car loan in full.
  • Delivery Charges: The platform you purchase your car from will likely charge you a fee to transport the car from the dealership to your location.
  • Taxes: You may be charged sales tax. The tax rate you’re charged depends on your location.
  • Extended Warranties: You have the option to buy an extended warranty pan, which provides extra protection over the standard warranty period.

Learn more: Budgeting For a Car


Tips For Buying A Car Online

To ensure a safe, affordable, and streamlined online car buying experience, consider the following tips:

  • Use Reputable Websites. Use trusted online platforms such as AutoTrader, Car Gurus, and Clutch to find your next vehicle.
  • Check The Vehicle’s Book Value. Use a source like Edmunds or Kelley Blue Book (KBB) to find out the book value of a used vehicle. This is very important to make sure you pay a fair price.
  • Verify The Seller. If you decide to buy from a private seller, make sure to verify their identity and that they have valid contact information.
  • Get A Vehicle History Report. Make sure you’re provided with a detailed history report on the specific vehicle you’re planning to buy. This will give you important information such as a history of accidents, claims, repairs, and ownership.
  • Inspect The Car Virtually. If possible, ask for several detailed photos, videos, and even a virtual tour.
  • Review The Return Policy. See if the resource you’re buying from offers a return policy. And if they do, find out the exact terms and conditions of the policy before buying.
  • Use A Secure Payment Method. Avoid cash transactions and instead use a secure method of payment.

Alternative Online Car Buying Option

There are many online lenders and platforms that you can connect you with dealerships you’re pre-approved for. For example, Canada Drives is an online platform that allows you to apply for auto financing online then connect with a dealership. You can quickly complete the online loan application, and Canada Drives will match you with a local auto dealership that offers vehicle options you’re pre-approved for. Then, you can shop around for a car that meets your budget without wasting time.


Final Thoughts

Now that you have a better understanding of the online car buying process, you’re ready to get started. Just make sure you understand your credit and financial profile and have an idea of the overall cost of your vehicle purchase, whether you buy online or in person. The best way to start the process is to use an online resource like Loans Canada’s CompareHub to find the best deals on vehicle financing.


Buying A Car Online FAQs

Why should you check your credit before buying a car online?

Lenders use your credit score to determine whether you should be approved for a car loan. In Canada, credit scores range from 300 to 900. Most conventional lenders need something above 650 to approve you for a car loan.

Can I test drive the car before purchasing the car online?

Test driving a car you find online may be difficult. That said, many of the online car-selling websites offer a free return policy. During this period, buyers can test drive and get a feel of the car. If they don’t like it or find something wrong, they can return the car.

Where can I buy a car online?

There are numerous sites that allow Canadians to buy new, used and certified pre-owned vehicles. Some of the more popular ones include Clutch and AutoTrader.

Can I buy a car online from a different province?

Yes, you can buy a car online from anywhere in Canada. However, you’ll need to consider the cost and time needed to have the vehicle delivered to you.

Is it safe to buy a car online?

Buying a car online is safe if you take the necessary precautions. These include such as using a reputable website or dealership, inspecting the vehicle history report, verifying the seller, and using secure payment methods.

Can I buy a car online and have it delivered?

Yes, many dealerships and online vehicle marketplaces allow you to purchase a car online and have it delivered directly to your door.
Caitlin Wood, BA avatar on Loans Canada
Caitlin Wood, BA

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

More From This Author

Special Offers

More From Our Experts

https://loanscanada.ca/wp-content/uploads/2018/01/new-car-or-repair-car.png
Should I Repair My Car Or Buy a New One?

By Kale Havervold
Updated on May 22, 2025

Is it worth it to repair your car or should you start from scratch and buy a new one? Everything you need to make the right decision for you.

https://loanscanada.ca/wp-content/uploads/2022/06/How-To-Finance-A-Mercedes-.png
How To Finance A Mercedes In Canada

By Bryan Daly
Updated on May 22, 2025

If you’re a luxury car enthusiast, financing a Mercedes can be a good option. Find out all the ways you can finance a Mercedes in Canada.

https://loanscanada.ca/wp-content/uploads/2022/08/Kia-Financing.png
How To Finance A Kia In Canada

By Bryan Daly
Updated on May 21, 2025

Thinking about buying a Kia but don't have the funds to buy one outright? Check out these Kia financing options available in Canada.

https://loanscanada.ca/wp-content/uploads/2022/05/Honda-Financing.png
How To Finance A Honda In Canada

By Lisa Rennie
Updated on May 20, 2025

Honda is one of the most popular cars thanks to its reliability and affordability. Find out more about a Honda finance in Canada.

https://loanscanada.ca/wp-content/uploads/2017/08/used-car-financing.png
How To Finance A Used Car In Canada

By Bryan Daly
Updated on May 16, 2025

Looking to purchase a used car? Keep reading for everything you need to know about financing a used car in Canada.

https://loanscanada.ca/wp-content/uploads/2022/07/How-To-Finance-A-BMW-In-Canada-.png
How To Finance A BMW In Canada

By Bryan Daly
Updated on May 16, 2025

BMW produces some of the best cars in Canada. If you're looking to buy one, find out all your financing options.

https://loanscanada.ca/wp-content/uploads/2021/06/Best-And-Worst-Cars-To-Insure-In-Canada.png
Best And Worst Cars To Insure In Canada

By Caitlin Wood, BA
Updated on May 15, 2025

Before you buy a car, consider the cost to insure it. An expensive car insurance policy can quickly make the car too expensive for your budget.

https://loanscanada.ca/wp-content/uploads/2020/02/Trade-In-Used-Vehicle.png
Should You Trade-In Your Used Vehicle Or Sell It?

By Bryan Daly
Updated on May 15, 2025

Not sure if trading in your vehicle is the right option for you? We have all the information you need to make the right choice.

Recognized As One Of Canada's Top Growing Companies

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers