Continuing the series of my Ontario blogs.
Buying a car 8)
So, you decided to settle here. Unless you end up in a large city with advanced transit system, you will definetely need to buy a car to get by (do the grocery, commute and do other stuff).
Since you are a newcomer, it's HIGHLY unlikely that this purchase would be financed by a bank or credit union. So, you will have to pay cash. I would highly recomend to start with a used vehicle, because they are generally very well maintaned (most Canadians change oil once in 5000km), and cost ~50% less than a brand new car. Basically, you have two options to go from here:
1) Buy from a private seller.
2) Buy from a dealership.
Private deals actually amount to 10% of the whole used car market and there's good reason for that. If you buy from a dealership, they will do the licensing and emission test on your behalf and pay the HST as well. Moreover, you are guaranteed that the ownership is not encumbered by loans. Most cars come with extended warranties (up to 5 years on drivetrain coverage) and even roadside assistance (which can lower the insurance rate). Some dealerships have a Carproof report that mentions the whole history of the automobile (insurance claims, licensing, tickets, maintanance, etc.). This is Canada-wide registry that holds all records on cars. If the dealership doesn't offer a Carproof report, you can buy it for 50CAD online. The downside of dealerships is that sometimes they apply additional administrative fees, and generally they charge a little more for cars in comparison to a private seller.
http://autotrader.ca/ is the largest Canadian site where you can look for a car with sorting by brand, location and other variables.
If you find a car that you are interested in, give a call to the salesperson and arrange for a showing. Most of the ads don't last forever, so you have to act fast. You need to bring your Driving license, then the dealership will attach a temporary license plate to the car, and you can test drive it all you want. Generally, the salesperson won't accompany you (yes, this is Canada). If you like the car, you can attempt to negotiate a little (mostly, they don't lower the price for a used vehicle, but nevertheless). Then you sign a Bill of sale and deposit a certain amount of the vehicle's total as an upfront. At this point you are legally binded to finalize the deal, so don't sign it unless you are willing to buy the car. When it's done, you will be provided with a copy of the Bill containing all the details on the car, and the owner (that is you). At this point you will have to go home and obtain a certified check from your bank to pay the remaining amount and also buy an insurance (it's mandatory in Canada). You can use kanetix.ca to look for a better quote or call the Insurance companies one-by-one (it's a tiresome process, but the quotes differ a great deal, so do put effort in it). The estimated rate for a newcomer amounts to ~3000CAD in Ontario, the larger the city you live in - the more you pay. However, they will break down the total for you in 12 payments, so you can pay it on monthly basis, which will make your life a little easier. You can buy the insurance by phone, and they will immediately email or fax you a temporary insurance card, which will be valid until you receive the hard copy via Canada post. As soon as you receive this interim insurance, forward it to the dealership and they will license the car for you (usually takes one business day). They will notify you when it's ready for pickup. Don't forget to bring your driving license, certified check and temporary insurance with you. The car will be ready for you, so grab the Ownership (it's the passport of the vehicle containing two portions - Vehicle and Owner), SIGN IT and go home to celebrate. And please, drive safely!
To be continued
