How to Buy a Car in Canada as a New Immigrant (Guide for 2025)

Everything You Need to Know—From Paperwork to Keys in Hand

Starting a new chapter in Canada? Buying your first car in Ontario as a newcomer can feel overwhelming—but it doesn't have to be. Whether you're here on a work permit, as a permanent resident, or an international student, this guide will walk you through every step of the process.

Step 1: Check Your Licensing & Driving Eligibility

Before buying a car, make sure you can legally drive in Ontario.

• Have an international licence? You can use it for up to 60 days.

• Planning to stay long-term? You'll need to exchange your licence or get an Ontario driver's licence.

Check how to get licensed here: Ontario Driver's Licence Info

Step 2: Decide Between New or Used

Buying new means peace of mind, but buying used is often more affordable.

New Car:

• Pros: Warranty, latest tech
• Cons: Expensive, higher insurance

Used Car:

• Pros: Cheaper, lower depreciation
• Cons: May need more maintenance

Tip: Start by browsing platforms like AutoTrader, Kijiji Autos, or visit local dealerships.

Step 3: Figure Out Financing

As a newcomer, you might not have Canadian credit history yet—but you still have options.

Financing Tips:

• Some banks offer newcomer auto loans (try Scotiabank or RBC).

• You may need a larger down payment.

• Consider getting a co-signer with Canadian credit.

Compare rates here: Rates.ca

Step 4: Understand the Legal Paperwork

When buying a used car in Ontario (especially in private sales), you'll need:

• UVIP (Used Vehicle Information Package) – from the seller

• Bill of Sale – proof of purchase

• Safety Standards Certificate – to register the car

• Emissions test (if required)

For all car registrations and legal requirements, check ServiceOntario Vehicle Registration Page

Step 5: Get Insurance Before You Drive

In Ontario, insurance is mandatory before you can drive your new car.

What you'll need:

• Ontario driver's licence

• Vehicle info (VIN)

• Driving history (international if available)

Compare insurance rates at: Surex or RateHub

Step 6: Register & Plate Your Vehicle

Once insured, head to a ServiceOntario centre with:

• Proof of insurance

• Licence

• Safety certificate

• Vehicle permit

• UVIP & Bill of Sale

They'll give you your vehicle ownership and Ontario plates.

Bonus Tips for Newcomers

• Bring a friend or translator if you're not confident in English yet.

• Test drive before buying—especially if buying used.

• Avoid "curbsiders" (illegal sellers posing as private owners).

• Ask if the car was in any previous accidents—use CARFAX Canada to check.

Getting your Ontario licence is a big deal and having the right car can help you pass.
Elan offers fully-insured, test-ready vehicles for G2 and G road tests across Ontario.
Book today with Elan