Hi there,

I am going to buy my first car in Canada. Can some one help me ? How and What is the procedure for buying Car in Toronto?

What supportive tools i have to buy and what precaution should i have to take ?

Thanks in advance.

Congratulations on your decision to buy a car - this is probably the second largest purchase you make, second only to purchasing a house. Here are a few quick pointers:

The first thing you need to decide is whether to buy a used car or new. Next thing is to decide whether you want to buy one or simply lease one - Both of these depend upon your circumstances, your finances, family and your own perspective.

Once you have decided next thing you need to do is focus on what type of car you are looking for. The easiest way to do this is based upon your needs and finances - if you have kids or a family a small compact car will not be right for you, likewise if you are a student and plan to remain single for a few years you may not want to invest in an SUV/ Minivan.

Finally once the type of vehicle is decided you can research the available cars in your budget at various websites: www.roadcompanion.ca, www.edmunds.com (US), autopoint, etc. Also check out the Annual Cars issue of Consumer Reports which is available in your local library.

A big plus is to try to arrange financing before you go to the dealer; or if you want financing from dealer then negotiate independently.

Most important do not be afraid to bargain. There are dozens of websites on negotiating for car prices.

Good advice by CanadianDream.
I would like to re-emphasise the need to bargain with the dealer.
Keep in mind that car dealerships have huge, (literally obnoxious) profit margins on most cars and will be willing to bend over backwards to win you as a customer.

Do not make car buying an emotional experience - think logically and buy as if you are buying any other item.
Shop around and don't be afraid to walk away from the dealership if they are not giving you the deal you want - there are thousands of dealerships and you can always buy from someone else.

Research the car you are buying by using consumer reports and recalls history. Safety of the vehicle is the most important thing, more than style of design.
Consumer reports will also tell you the invoice price for the car.

Unless you are buying the latest model of Porsche or Ferrari, you should not pay the sticker price.
Try to buy at invoice or just above.

Also, once you have narrowed down the types of cars you want, contact an insurance broker and get quotes for each of the vehicle.
Sometimes it is worth buying a slightly expensive car at this point if you will save thousands of dollars in insurance.
In fact, since insurance is such a huge deal here in Canada, it becomes one of the primary factors when deciding which car to buy.

Stay away from rip-offs by the dealer.
I don't know about Canada, but in the US, the dealers offer you several goodies such as extended warranty, life insurance, credit insurance and so on when you buy a car.
All those are simply rip-offs and I have been burnt that way.
Do not buy an extended warranty if you are buying a new car - use the car for a few years and then decide whether you need an extended warranty or not.
If going for an extended warranty, take *only* manufacturer's extended warranty - any third-party (or the dealer's own) is worth garbage.

-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

To add to what Canadian Dream has written - once you have decided what kind of car you want to buy (compact/mid size, Van or SUV), go and test drive the cars at dealers. No matter whether you want a new or a second hand, test drive both new and old of similar models to get a feel what difference does it make when a car becomes 3 or more years old.

If you have the time and are in no hurry, go to atleast three dealers and if you are wanting to buy an old/used car, definitely visit a few dealers to compare prices and see same model and same year cars can be different with different dealers.

Apart from looking at the car, since you have never driven a car in Canada, you will have to learn a lot about the maintenance of cars in this weather. However, dealers will not help you much on that issue and you will have to take guidance from your friends and colleagues.

Chandresh

-----------------------------------------------------------------
Chandresh

Advice is free – lessons I charge for!!

One thing I want to make you aware of, the mistake I was close to make.

In case of private sale of used car , see whether the person selling the car is actual seller.

Many sellers show themselves as Private Sellers but in fact are Curb side sellers. These guys buy the car and sell it showing it Private Sale.

In case of Private Sale, ask for ownership papers and check whether the seller is actual owner.

Do not buy the car without getting it inspected by a known mechanic.