You just moved to Ontario and need a car, but how exactly do you do that? In short, you will need to complete the following steps: obtain an Ontario driver’s license, find a car you want to buy, secure financing, insure the vehicle, and register the vehicle. While the process is relatively straight forward, it’s important to be prepared and have a good understanding of each step, this way you’ll be able to get back on the road as soon as possible.
Obtain an Ontario License
Before you can buy a car and start driving, you’ll need to obtain an Ontario driver’s license. If you have a license from another province or country, it is possible to exchange your license for an Ontario license. You can use your license from another region for 60 days after moving, but once that period ends you must switch over to an Ontario license. You’re required to meet certain criteria to exchange a license which depends on how long you’ve been driving and where you were licensed before.
If you are relocating from a specific location (check out the Government of Ontario’s website for a full list), you can exchange your driver’s license to an Ontario license. On the contrary, you cannot exchange your driver’s license if your current license was issued in a country, not on that list.
You also cannot exchange your license for an Ontario license if your current license is a learner’s permit or novice class. In addition, having a motorcycle license from another region will not be exchangeable for an Ontario driver’s license.
The good news is if you can prove that you have adequate driving experience from another country, you can fast track your way to an Ontario license. You can do so by self-declaring one year of driving experience by showing a valid foreign driver’s license that is a year old or more. To declare further driving experience, you will need an official letter from the foreign government or agency that issued you your driver’s license. Keep in mind that the letter will need to be written in English or French in order to be processed.
If you do not have a valid license from your previous home or don’t qualify for an Ontario license, you will need to go through the whole licensing process in Ontario.
Find the Right Vehicle
Now that you’re good to drive on Ontario roads, the next step is to find a car for purchase. Choosing the right vehicle can take quite some time as there is ample choice out there. It can help to write out all your wants and needs before deep diving into your options. Examples of wants and needs could be a six-seater car, sunroof, heated seats, four-wheel drive, Bluetooth, the list goes on.
Consider Your Budget
One other thing you should consider before shopping is your budget. This includes the initial purchase and the operating cost of owning a car, such as gas, insurance, repairs, maintenance, parking and so on. Knowing your price point will help you narrow down your options even further.
New vs. Used
Another consideration you’ll need to think about is whether to purchase a brand-new car or a used car. Both have their corresponding pros and cons, the choice will depend on your finances, lifestyle and desires. In general, new cars have all the bells and whistles but are more costly in terms of financing and depreciation. Whereas used cars cost less upfront but can come with issues and require more repairs and maintenance. The new versus used car decision boils down to money for a lot of people. It’s best if you can find a car that fits into your budget reasonably and still meets all your needs, may that be new or used.
Private Seller vs. Dealership
Finally, you will need to consider whether to go with a private seller or a registered dealership (learn more about privately buying a used car in Ontario). There is more risk going through a private seller, but you may be able to snag a better price. Specifically, there is no consumer protection and no legal requirement for the seller to disclose historical information and little you can do if something goes wrong with the purchase. Registered dealerships are less risky but can be more costly to work with. Dealerships are safer to work with because they are required to advertise “all in” prices, disclose historical information on a vehicle and provide support from third parties if an issue arises. In addition, dealerships can help you with much of the paperwork that comes with purchasing a vehicle.
Choose the Best Financing Option for Your Needs
After you’ve picked the car of your dreams, it’s time to organize the financing. Generally speaking, you have three financing options:
- ●An auto loan from a bank or credit union
- ●In-house financing from a car dealer
- ●Alternative financing company
- ●Apply with a Full-service auto loan broker such as AutoLoanServices.ca
Each option has its own advantages and disadvantages. If you have the time, it’s worth looking into all three options then obtaining the loan with the most favourable terms. However, the process of obtaining an offer from numerous lenders can be time-consuming, especially since multiple in-person meetings are usually required. If you’re looking for the right car, easy to obtain financing options, as well as a variety of other benefits, your best choice is to go with a full-service auto loan broker like AutoLoanServices.ca. Applications only take a few minutes and you’ll be approved rapidly.
Properly Insure the Vehicle
In Ontario, you are required to have car insurance on your vehicle by law. Furthermore, all vehicles must be insured for third party liability worth $200,000 or more to cover damage to someone else’s property while driving or cover damage from injury or death to another person while driving. Collision insurance is a good idea too, which covers damage to your own vehicle in the event of an accident but isn’t required by law like third party liability is.
When you obtain car insurance, it’s important that your name and the financing company’s name appears on the insurance policy. Insurance must be purchased from a private insurance company and is usually required before you finalize the car purchase. Once you obtain car insurance, you must carry the pink slips with you or in your car at all times.
Register Your Vehicle
Last but not least, you must register your vehicle in Ontario. Registering simply means you list your car, and you as an owner of that car, with the Ontario government. In exchange, you will receive a physical green permit, license plates and validation stickers. Keep in mind that validation stickers must be renewed every year, usually on your birthday so you don’t forget. Typically, car dealers help out with this process, but if they don’t, you’ll be required to complete all the paperwork on your own.