Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Buying a car is likely one of the biggest purchases a person will make in their life, outside of buying a home. A lot of thought and consideration should go into this decision, as you will likely be paying for it over a couple of years at least. You should not only consider what you need and want right now, but also what you might need and want in the future.
While it can be enticing to want to buy a brand new car off the lot, that isn’t always a good idea, at least financially speaking. Instead of buying new and spending an arm and a leg on a depreciating asset, why not look to buy used?
Want to know if you should repair your car or buy a new one? Check this out.
Buying used is an awesome way to save money, without sacrificing quality. While your first thought might be to look on used car lots, don’t be scared to buy privately. While you may have heard some horror stories about buying cars privately, if you do it safely and properly, it can be a great way to save some money while also getting a great car. Used lots are fine, but are generally more expensive than buying privately.
With that in mind, this article will walk you through the steps you should take and some tips you should follow when purchasing a used vehicle, privately, in Ontario.
Check out our helpful infographic: New Cars vs. Used Cars
When you buy a car, there are generally two ways to do it. One is to purchase it from a car lot. You can typically find used and new cars on the lot, and can often get things like an added warranty. You can also sometimes finance the car through the dealer itself.
Trying to finance a used car in Canada? Read this.
The other way is to buy it from an individual, which is called a “private sale”. There are no salespeople, no marketing team, and no expensive add-ons, simply one person buying a vehicle from another.
While 98% of people selling a car privately are fair and honest people, there are indeed the odd sellers who will try to scam a buyer into buying a car they shouldn’t. We will touch more on this topic a little later, but before that, let’s take a closer look at the steps you should follow to privately buy a used vehicle in Ontario.
Click here to discover 10 things you should know when buying a used car.
While buying a car privately might scare some people and make them nervous, it really shouldn’t. If you follow the steps below, buying a car privately should be an easy and pain-free experience.
Before you can privately purchase a vehicle, you need to know what sort of car you want. This will involve doing research on the make, model, and features of several different vehicles, so you ultimately decide on one that will best suit your needs. There are many great review and rating sites online that can give you insight on the reliability, and features of almost any car.
You may also want to look into getting a certified pre-owned vehicle.
Once you have an idea of what kind of car you want (or have narrowed it down to a few) you are ready to start looking for a sale. Generally, online listings are a great place to look as there usually hundreds of cars for sale in most major cities. Normally, people are pretty quick to respond to these ads, so you shouldn’t need to wait too long to hear back if you are interested in a certain vehicle.
Once you have been in contact with the seller, it’s now time to choose a date and place to view the vehicle. Not only should you view it, but you should also take it for a test drive and become familiar with its maintenance and accident history. Also, every vehicle that is sold needs to have a Safety Standards Certificate (SSC) before it can be registered to a new buyer. Taking into account the information you find (and whether or not you need to pay for the SSC inspection), negotiate on a price until you come to an agreement with the seller.
To learn how to check the history of a used car, click here.
When you pick up your new car from the seller, you need to pay for it. It’s uncommon for a private seller to be paid via installments like you would if you bought a car from a dealership. This means you’ll need to pay the seller in cash (either your own cash or cash from a loan) via a certified cheque. There are also services out there that you can work with that will pay your seller back over time, so the choice is yours. You will need to, of course, get insurance for the vehicle before picking it up as well.
Trying to save money on your car insurance? Take a look at this.
Once you have the insurance and the money for the car, you can set up a meeting time and place to make the exchange. In addition to transferring the registration, there are a few things/documents you need to have. You will need a bill of sale, vehicle permit with the application to transfer, and the Safety Standards Certificate. Once you have all the necessary documents and the car, you can register it to your name and take possession.
Take a look at this infographic of everything you need to know about auto financing.
So, now that you are aware of the steps you should take when buying a car, how can you avoid getting scammed during this private sale? Well, there are a few things to watch out for:
What’s the difference between leasing a car and buying it? Look here for the answer.
Take your time, follow the steps we laid for you and you should have no problem privately and safely purchasing a used vehicle in Ontario. Make sure you watch out for the warning signs of fraud, have all the necessary paperwork, and ensure you have checked the car out thoroughly, it should be an easy process. if you’re currently interested in getting financing to purchase a privately sold vehicle, Loans Canada can help.
Rating of 5/5 based on 28 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
With KOHO’s prepaid card you can build a better credit score for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.