Car Buying-Canada

From Wiki

1 Introduction
2 Tax
3 Insurance
4 Driving License
5 Researching a vehicle
6 Buying from a dealer
7 Buying a used car
8 Car brokers
9 Related Wiki articles
10 Related Forum Posts

[edit] Introduction

Some downtown residents of major cities exist without owning a car. They commute to work on public transit and rent a car if they need one at the weekend. Major cities have shared ownership carpools as well and these are an option for a city dweller.

However, North America is car country and most households have one car/truck per adult. One of the first things you will want to do in Canada is get some transport.

Canada is different from the UK in that very few people drive company cars. Maybe traveling salesmen may have a company car (though many don’t) or someone working in a remote location off road may be given a company truck to get to work. The overwhelming number of people use their own vehicles. This results in a different car market:

Many people rate reliability and longevity above marque. Hence the popularity of Asian cars and North American trucks.
Nearly new cars are relatively expensive compared to the UK. If you expect a car to last 10-12 years then a two year old one still has 80/85% of its useful life.

[edit] Tax

Whenever you see prices for vehicles they will exclude sales taxes. You need to add GST at 5% (from January 1st, 2008) and provincial sales tax. In BC, the provincial sales tax is 7% on small to average cars, and up to 10% for luxury vehicles.

You do not pay tax if you buy a used car in a private sale. However, in BC you will still be required to pay PST on the purchase price when you register the vehicle. Immediate family members can transfer vehicles at no cost, but otherwise the Government will want a convincing explanation if the price is significantly different from market value.

[edit] Insurance

Insurance is expensive in Canada. Each province has its own rules.

In BC you must purchase minimum basic third party insurance from the government – a crown corporation known as ICBC. Additional insurance is recommended and can be purchased either from ICBC or third party providers such as Canadian Direct or BCAA. You can get up to 40% discount if you have 8 years at-fault accident free in the UK, but you must provide proof in a form acceptable to ICBC. Third party providers can offer better discounts than ICBC if you are a safe driver with a good record.

If you buy a car from a dealer, they will arrange for an insurance agent to be on hand when you pick it up. If you buy privately you will need to visit an Autoplan broker to register and insure the vehicle before you can drive it.

There is more information in the BE Wiki article entitled Car Insurance in BC.

Other posters are invited to provide information about their provinces.

There have been reports on the BE forum that Aviva accepts UK no claims for car and house.

[edit] Driving License

New residents can drive for up to 90 days using their UK driving license. Some provinces will exchange a British driving license for a provincial one. Unfortunately, people moving directly to BC from the UK will need to pass a theory and road test before they are issued with a BC license.

There is a waiting list for road tests so this should be a priority as soon as you arrive.

[edit] Researching a vehicle

You can buy some, but not all, models you are familiar with from the UK as well as many North American vehicles. “European” makes available include VW (although some models are manufactured in Mexico), BMW, Mercedes, Saab and Volvo. Japanese and Korean models are widely available and very popular.

You can research the range of vehicles available from websites like Canadian Driver. The Automobile Protection Association’s. The Lemon Aid Guide is a type of consumer reports book on vehicles in Canada, from older to newer models. The reports include details on owner related problems, technical service bulletins, depreciation and used price guides. The books are are sold online, through bookstores and available to borrow from many libraries in Canada. This book is quite an eye opener to the intrepid car buyer. This is a must read for anyone looking to buy a new or used vehicle.

Other useful sites include the American reports at Kellys Blue Book and Edmunds.com

[edit] Buying from a dealer

The pros and cons of buying from a main dealer, a used car lot or privately are the same in Canada as they are in the UK. Watch out for the 30 second or 30 yards warranty from the less reputable used car lots. Once you pass either the car is yours.

Main dealers sell and lease new and used cars. Car dealers are the same the world over. Though you can expect a friendly and professional approach from the sales staff you should go into the showroom with your eyes open and your brain switched on. You are dealing with trained and expert negotiators whose objective is to maximize their revenues – and that means getting as much money out of you as possible.

Their aim is sell you a vehicle as near to the sticker price as possible. There is virtually always something you can negotiate off this price. However, it’s up to you to get it. The negotiation starts when they say, “this is the MRRP of the car – make me an offer”. The only way you will know the right amount to offer them is if you know how much it cost them. There is a website called Car Cost Canada where for $40 you can buy an online report listing the dealer cost of up to 5 comparable models.

Car Buying Tips is an informative, if long, read of what to expect from car salesmen and how to deal with them. It's a US site, edited of Canadian content, but if you are buying from a dealer you really should read through the chapters listed at the bottom of the page.

[edit] Buying a used car

A used vehicle can be a sensible purchase. Unless you absolutely positively need a new set of wheels or have this obession with 'automotive virginity' or have money to throw away, a used car is often the way to go. Pick something 3 to 4 years old, with 50,000 kms on the meter, have it rust-proofed every year in central and eastern canada, and then drive it into the ground. A well maintained car can easily last 150,000 kms. And be thankful some people do buy new cars as it allows one to buy second hand. Whether you are buying privately or from a dealer, it is essential to have the car checked first by a competent mechanic. The provincial AAs offer this service for $120-$150 as do many car mechanics. Car dealers are used to this and will transport a used car to a mechanic for inspection. If they, or a private seller, will not allow an inspection it is probably best to walk away.

Used car prices can be investigated on websites such as http://www.vmrcanada.com.

(other posters are invited to add to this list)

Autotrader has many listings of used vehicles. Also try Craig's List.

Some more information about buying and selling used cars is available here: http://www.icbc.com/buy_car/

Used vehicles from the Lower Mainland of BC have the highest resale values because of the climate. The rest of Canada uses a lot of salt on the roads during the winter and this leads to rust problems earlier in the car’s life (not true of Alberta). One word of warning when buying a used vehicle is to watch out for “curbers”. These are car dealers who pose as private individuals. One of their favorite ways of making money is to buy used cars from auction in Ontario, transport them to BC, and sell them as though they are their own family cars. A car history report (ICBC do these from $20-$60) is a worthwhile investment.

It would be VERY wise to purchase a CarProof report on any used vehicle. This is similar to a [www.carfax.com] report, but much more relevant to Canadian vehicles versus American vehicles. This report is available online at [www.carproof.com] and generally contains much more information than a carfax report. You will need the VIN (Vehicle Identification Number) to order one. This is useful in that it is a real time report and will tell you if the vehicle has been reported stolen or has a lien against it. An outstanding Lien means that someone has a financial interest in the vehicle and it is subject to potential repossesion. If you order the "B.C Verified" version (most expensive) it will give Canada wide information on the vehicle from many sources; including insurance and accident history, registration history and provincial registry (liens) as well as police (stolen) records and even US information should the vehicle ever have been registered south of the border.

Beware of scams in private ads (there are many on kijiji, Craigslist and Canada Trader). Vehicles offered at "too good to be true" prices are usually scams. Another classic scam, is when the 'owner' tells you the car is currently in another location far away, but if you send money.....etc, etc. If you come across any of these - RUN the other way. The old caveat "If it sounds too good to be true, it probably is" applies. It's very much Caveat Emptor (buyer beware) here in Canada.

[edit] Car brokers

Some posters have saved themselves the time and effort of searching for a vehicle by using the services of a car broker. Greg Huynh at http://quinellaauto.com/index.html has been recommended by one poster.