Helpful tips when buying a car

What your car buying journey looks like depends on whether you’re buying from a dealership or from a private seller. When you buy a new or used car from a dealership, for example, you can usually expect the dealer to help you every step of the way. Since they'll handle most of the paperwork, you'll just need to prepare a few things in advance, such as obtaining insurance, and you'll be driving your car off the lot in next to no time.

But if you’re buying a car from a private seller, you'll have to do most of the legwork yourself. Be prepared to handle tasks like checking the car's history and getting a mechanic to inspect the vehicle. You'll also need to manage the paperwork, including the title transfer and registration. While it can be more work, buying a used car often saves you money—but it’s important to take the time to do it right.

As you gear up to buy your car, there are certain legal requirements of car ownership you need to know. Checking off these boxes can be key to a smoother car buying experience.

In Canada, you can buy, insure, and register a car without a driver’s licence, but you’ll need a valid licence to take your car on the road.

Each of the provinces and territories has their own unique graduated licensing system. This means new drivers must go through different licensing stages—for example, the learner's permit stage or an intermediate driver stage—to get their full licences, with each stage having its own set of rules and restrictions. So it's important to check with your local Ministry of Transportation to make sure you’re fully licensed and legally allowed to drive your newly purchased car.

With the car of your dreams almost in your driveway, it's time to wrap your head around car insurance. Let's break down everything you need to know about insurance to make sure your new vehicle is protected from the moment you step in to drive it.

Many insurers offer online quotes—at TD Insurance, for example, you can get an online quote in minutes. You can also contact an insurance company by phone for a quote. Carefully compare the quotes you get to make sure they offer similar coverages and payment terms, so you can decide on the best offer.

Once you decide on an insurer, you can usually buy insurance online or by phone. You’ll need to know the make, model, and VIN (Vehicle Identification Number) of the car—you can find the VIN, a unique code that identifies your car, on the driver’s side dashboard or on your vehicle registration documents, or ask the dealership you're buying your car from. You'll also need any financing or leasing information and your banking details for setting up payments.

To purchase online, use the information you've gathered to fill out the online application form. If you're applying to purchase by phone, the insurer will take you through a series of questions asking for this information. Be sure to arrange for your coverage to start when you pick up your car, so you’re protected right from the start.

If you're new to car insurance, check out our handy guide on how to get car insurance for all the details you need. Already covered with us? You can quickly add your new vehicle to your existing policy by logging into MyInsurance—it’s simple, fast, and available 24/7. If you’d rather have a chat, just give us a call and one of our Licensed Insurance Advisors will assist you.

Whether you’re finalizing your purchase at a dealership or with a private seller, proof of insurance is compulsory from the get-go. And, in fact, if you’re financing or leasing your car, the dealership will usually require confirmation that the vehicle has physical damage coverage.

In addition to your policy documents, your insurer will provide you with proof of insurance printed on a small pink piece of paper commonly referred to as a "pink card".

Most provinces now also allow you to carry a digital version of your pink card as proof of insurance—most insurance companies can send this to you instantly when you purchase your insurance. Be sure to check the specific laws in your province or territory to make sure you’re carrying the right form of proof.

Choosing the car you want is just the first step when purchasing a car. Here are some tips to help make your car buying journey smoother.

There’s something special about buying a new car straight from the dealership: Not only do you get to enjoy a brand-new car (complete with that brand-new car smell!), but the dealership will also handle the tedious paperwork for you, from sorting out the financing to registering the car in your name.

Buying a used car from a dealership is similar to buying new, with dealers typically handling inspections and paperwork for you. But if you’re going the private sale route, you'll need to take care of everything yourself, from verifying the car’s history to arranging inspections, plus all the paperwork as well. The upside? You'll often get a better price with a private sale.

Setting a clear budget early so you know how much you can realistically afford helps steer your entire car shopping journey—no pun intended! The buy vs. lease decision will affect how much you can afford. Buying means you get to own the car at the end of your financing term, but your monthly payments will likely be higher. Leasing often offers lower monthly costs—but since you're not buying the car, you won't own the car when your lease ends (unless you choose to buy out your lease at that point).

One final budget tip? Avoid surprises by asking for a breakdown of the total cost of the car. Unlike a car's sticker price, this total cost includes everything you'll need to pay to purchase the car, such as taxes, dealer fees, and other required charges.

Understanding dealer lingo can help you shop smarter. Here are some of the common terms you may encounter on your car purchase journey:

• Test drive: Driving the model you want to see if it feels right for your driving needs.
• Demo car: A car that's been used for test drives and dealer use. Demo cars are usually offered at a discount. 
• Certified Pre-Owned (CPO): Used cars certified by the manufacturer or dealership to meet certain quality standards. They often come with an extended warranty.
• MSRP (Manufacturer's Suggested Retail Price): The recommended selling (or “sticker”) price set by the manufacturer. 
• Extended warranty: An optional warranty plan to extend the standard warranty period and/or coverage.

Whether you're buying new or used, make sure you have the best car insurance coverage to suit your needs—and with over 30 ways to save on your insurance with us, getting a good deal on your insurance has never been easier. 

And remember, if you're an existing TD Insurance customer looking to update your policy with your newly purchased vehicle, you can do so easily through MyInsurance. Or, if you're looking to purchase your first car insurance policy with us, you can get a quote online in minutes.