Buying your first used car is an exciting milestone, but it can also feel overwhelming. In Ontario, there are specific regulations, taxes, and protections in place that buyers should be aware of before making a purchase. This guide will walk you through everything you need to know to make a confident and informed decision when buying your first used vehicle.
1. Set a Budget and Consider Total Costs
Before you start shopping, determine how much you can afford. In Ontario, the total cost of car ownership includes:
✔️ Purchase Price – The sticker price of the vehicle.
✔️ Sales Tax (HST) – You’ll pay 13% Harmonized Sales Tax (HST) when buying from a dealership. If purchasing from a private seller, you must pay Retail Sales Tax (RST) at 13% when registering the vehicle.
✔️ Insurance – Ontario has some of the highest auto insurance rates in Canada, so get a quote before buying. Rates depend on your age, driving history, and vehicle type.
✔️ Registration and Licensing Fees – A vehicle registration fee is required to put the car in your name.
✔️ Fuel & Maintenance – Consider ongoing costs like fuel, oil changes, and repairs.
💡 Tip: If you’re financing your vehicle, ensure your monthly payments fit within your budget.
2. Choose the Right Used Car for Your Needs
Think about what you need in a car:
🔹 Fuel Efficiency – Great for commuting and saving money on gas.
🔹 All-Wheel Drive (AWD) – Ideal for Ontario’s snowy winters.
🔹 Safety Ratings – Check crash test ratings and safety features.
🔹 Insurance Costs – Some cars cost more to insure than others.
💡 Tip: Use websites like AutoTrader, Carfax, and the Canadian Black Book to research vehicle prices and values.
3. Buy from a Dealership vs. Private Seller
In Ontario, you have two main options when purchasing a used car:
Buying from a Dealership (Like Bender’s Auto Sales)
✅ Comes with an Ontario Safety Standards Certificate (SSC) if advertised as “certified”
✅ No need to pay for a separate Used Vehicle Information Package (UVIP)
✅ May offer a Certified Pre-Owned (CPO) warranty
✅ Dealer must follow OMVIC (Ontario Motor Vehicle Industry Council) rules, protecting buyers from fraud
✅ Trade-in options and financing are available
Buying from a Private Seller
🚫 No legal requirement to provide a Safety Standards Certificate (SSC) – If they don’t, you’ll need to pay for an inspection before getting plates.
🚫 You must purchase a Used Vehicle Information Package (UVIP) ($20 from ServiceOntario) to check the car’s history.
🚫 No warranty or consumer protections—you buy “as-is.”
🚫 Must pay 13% Retail Sales Tax (RST) at ServiceOntario when transferring ownership.
💡 Tip: Buying from an OMVIC-registered dealership like Bender’s Auto Sales ensures you get a legally protected purchase with fewer risks.
4. Check the Vehicle History & Condition
Before committing to a used car, check its history and inspect it carefully.
🔍 Request a Carfax Report – This shows accident history, liens, previous owners, and service records.
🔍 Look for the Ontario Safety Standards Certificate (SSC) – Without it, you can’t legally drive the car unless you get it certified.
🔍 Inspect the Vehicle – Look for rust, wear on tires, leaks, and signs of damage.
🔍 Take it for a Test Drive – Listen for unusual noises and test the brakes, steering, and acceleration.
🔍 Consider a Pre-Purchase Inspection – A mechanic can confirm if the car is in good condition.
💡 Tip: If a seller refuses to provide a Carfax report or UVIP, this is a red flag.
5. Finalize the Purchase & Transfer Ownership
Once you’ve chosen the right car, here’s what you need to do:
📝 If Buying from a Dealership:
✔️ Review and sign the Bill of Sale (includes VIN, price, and tax breakdown).
✔️ Pay the 13% HST (included in the total purchase price).
✔️ Register the vehicle and get plates (dealerships often handle this for you).
✔️ Get proof of insurance before driving off the lot.
📝 If Buying from a Private Seller:
✔️ Ensure the seller provides a Used Vehicle Information Package (UVIP).
✔️ Verify the Safety Standards Certificate (SSC) (or be prepared to get one).
✔️ Pay the 13% Retail Sales Tax (RST) at ServiceOntario when transferring ownership.
✔️ Purchase insurance before registering the car.
💡 Tip: Private sellers may ask for cash, but dealerships offer financing options to help you pay over time.
6. Get Your New Car Insured & Registered
Before you can legally drive your used car in Ontario, you must:
✔️ Get Auto Insurance – Contact an insurance company and provide your car’s VIN number to get coverage.
✔️ Register the Car at ServiceOntario – Bring your Bill of Sale, insurance, and driver’s license.
✔️ Get Your License Plates & Permit – If your vehicle is certified, you’ll receive plates and a permit on the spot.
💡 Tip: In Ontario, license plates are now permanent (no renewal fees), but you must renew your permit annually.
Buying your first used car in Ontario doesn’t have to be stressful. By understanding taxes, safety certifications, and consumer protections, you can avoid common mistakes and make a confident purchase.
At Bender’s Auto Sales, we offer certified pre-owned vehicles with full history reports, safety inspections, and financing options to help you find the right car worry-free.
📍 Visit us in Listowel or check out our latest inventory here:
🔗 https://bendersautosales.ca
🚗💨 Happy car shopping!