Car Loans in Canada – How to Finance a Car in Another Province. A car is one of the highest dollar purchases many Canadians ever make. If you haven’t saved enough money to buy a car outright, you’ll need to finance it using a car loan. You can secure a car loan from banks, dealerships, and online lenders.
Have you been searching for the vehicle you want to finance? However, have a tough time finding it locally? No worries! You’re not alone. The good news is you can shop around in any province you prefer to find your desired set of wheels. Buying an out-of-province vehicle might cause added stress, require additional paperwork, or can result in some added questions or concerns. Have no fear since we are here for you. Follow our step-by-step guide to figure out what you’ll need to do when buying a vehicle out of province and getting it back to where you live.
Can You Buy a Car in Another Province?
Yes, you can buy a vehicle from any province in Canada. However, the process is slightly more complex and time-consuming than buying one in your home province. Going through this route can bring a lot of extras, extra paperwork, research, cost, and extra time. You should know what it takes to register an out-of-province vehicle where you live. Since regulations for each province are different.
Click on the following for the most up-to-date and official registration resources: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, and Saskatchewan.
Car Loans in Canada – How to Finance a Car in Another Province
Here are the steps to take when buying a car in another province.
Step 1: Find the right car
This is the easiest step since it’s your personal choice. You have in your mind what’s your dream vehicle. All you have to do is to find it and make sure to own it. You can search on a website like Kijiji, Auto Traders, or any online platform such as a marketplace.
Step 2: Obtain a background check on the vehicle
You may want to use a company like CARFAX to get more details about the vehicle’s history using the car’s VIN. This can give you pertinent information on whether your prospective vehicle has been in an accident, is listed as stolen, or is attached to any leases or loans that are still outstanding. It will also give you a full rundown of the sales history for the car and an accurate odometer reading. You can also run a VIN check with the Insurance Bureau of Canada to get more information on the status of your new vehicle.
Step 3: Determine the condition of the car
Though buying a car sight unseen isn’t ideal, there are some extra steps you can take to make sure the vehicle is in good condition. If you can’t go in person, you may want to pay a little extra to get a third-party inspection from a licensed shop and acquire a safety certification. You may also ask the seller to send you as many interior and exterior photos and videos of the car as possible. Conducting a thorough inspection is a must to guarantee the vehicle you want to buy is perfectly fine.
Step 4: Secure favorable financing
When you decide to finance a vehicle in another province, you must secure financing that best fits your financial situation. Ensuring you’ll not have a problem in the future, specifically in managing your finances. Choose the right company that can help you and has a good reputation.
Step 5: Insure the vehicle
You’ll usually need to drive your vehicle back home after buying it. Just be aware that you won’t be able to drive the car until you set it up with temporary registration and insurance. This involves visiting an insurance agency in the province where you purchase the vehicle. They will give you a temporary license plate registration sticker and insurance (usually just for a couple of days) to get the vehicle home and insure it in your province of residence. You can skip this step if you decide to have your car shipped or have the seller drives it over for you.
Step 6: Register the vehicle
After buying a car in another province, you’ll need to transfer the title and register your vehicle where you live. Each Province has its own set of requirements that you’ll need to fulfill to register your vehicle. You’ll have to pay for the registration fees, inspection tests, and repairs out of your pocket. It could run anywhere from a few hundred to thousands of dollars. You won’t be able to drive your car until these steps are completed. Thus, make sure to budget for those extra expenses when deciding if you can afford to buy a vehicle out of the province.
What to Consider for your out of the Province Car Loan
When looking for an auto loan to purchase your out-of-province car, you’ll need to consider who you’ll obtain financing from. What you’re looking for in a lender and what the lender wants from their applicants. When it comes to auto loan lenders, you have several options. That includes banks, dealerships, and online vehicle retailers. All of these lender types have their corresponding advantages and disadvantages.
Through Banks or financial institutions: While car loans from banks tend to come with higher interest rates than loans through a dealership, some banks don’t require a down payment. This could be an advantage over dealership car loans which often require you to put money down. That lowers the amount of your loan. You may also be eligible for better rates or discounts on fees if you have a pre-existing relationship with the bank. However, if you have a bad credit score, it can be hard to get approved for a loan.
Dealerships: When you find a car you like, dealerships will often offer finance options at the point of sale. Dealerships are convenient because you can get the car and the financing in one place. However, most dealerships focus on their “prime” business and don’t have the resources to help bad credit and no credit applicants. Furthermore, there are usually some extra dealer fees that come with buying a car at a dealership, so make sure you’re clear about this before you sign any paperwork.
Online Vehicle Retailers: Finding a car loan online can be an option for buyers who can’t get a loan from a bank or dealer, typically because of a poor credit score. Unfortunately, these less-traditional car loans may come with higher interest rates, making it hard to manage car payments. No worries! With Edmonton Auto Loans, you can be at ease. We are networked with the top financial institutions in the country and can help customers facing all types of credit situations. We offer competitive interest rates and terms to everyone. You can finance 100% online.
The characteristics of the lender matter as well. Even if you have all of the terms and conditions you want, you still want to ensure that you are with a fair and understanding individual or business. The last thing you want is to work with a dishonest and untruthful lender. Before you apply for a car loan, research or ask the lender what their minimum requirements are. This will allow you to boost your credentials and better your odds of approval.
The cost associated with buying a car in another province
In addition to the cost of the vehicle, there are other costs to consider when buying a used car out of the province. If a local dealer obtains a vehicle on your behalf from an out-of-province dealer, they’ll incur vehicle shipping costs, which will likely be passed on to you. If you buy a car in one province but live in another, you’ll also have to transfer the title and registration to the province you live in. You also have to pay sale tax relative to your home province, specifically motor vehicle tax and GST/HST. Insurance of the vehicle in your home province is included too.
Pros and Cons of Buying a Car Out of Province
Although buying a car from another province may seem like a hassle, it can be a great way to get the vehicle you want. If the car of your dreams is unavailable in your province, you’ll have a better chance of acquiring it through another Province. Plus, depending on the province you live in, you could pay less in sales tax. For instance, Alberta’s provincial sales tax rate is 5%, and Ontario’s tax rate is 13%. The cons of buying a car in another province involve time, effort, and extra costs. You also have to consider unfamiliar business practices since dealerships and lenders operate differently in each province.
Get pre-approved for your car loan online
On the other hand, if you need to buy a vehicle in a province you do not live in due to a lack of inventory or long wait times, make sure to choose the right dealership or lenders. It can make all the difference in making the entire process a lot smoother.
If you are on this page, you’re in luck. Edmonton Auto Loans works with customers in every province. Complete our secured mobile-friendly credit application form here. One of our dedicated finance specialists will work out all your options and discuss the best ones with you. We’ll match you with a local dealership partner that can help your credit situation.
Try out our car loan calculator to know your possible monthly payments. We’ll make auto finance easy for you even if your credit is poor, bad, or even if you have no credit. Get pre-approved here today and get on the road as soon as possible. Phone us here for any questions,1-855-227-1669.