Buying Your First Car
What to know before purchasing your first vehicle.
Step-by-step guide
Set a realistic budget
Include: car price, insurance ($2000-$4000/year for new drivers), gas ($150-$300/month), maintenance ($1000/year), registration ($120/year). Total cost = purchase + $5000-$10,000/year to operate.
Decide: new, used, or lease?
New: Expensive, warranty, reliable. Used (3-5 years old): Best value, check CarFax. Private sale: Cheaper than dealer but higher risk. Lease: Lowest monthly but no ownership.
Get pre-approved for financing
Check loan rates at your bank before visiting dealers. Get quotes from multiple lenders. Aim for 20% down payment, 4-year loan max. Never agree to financing at dealer without comparing.
Inspect before you buy
For used cars: Get pre-purchase inspection from mechanic ($100-$150). Check CarFax for accidents. Test drive in different conditions. Walk away if seller refuses inspection.
Complete ownership transfer
At purchase: Get bill of sale, ownership (pink slip), safety certificate (if required), emissions test. Within 6 days: Register vehicle and get plates at ServiceOntario. Get insurance before driving.