2025 Canada Car Program
January 28, 2025
Owning a car is essential for many Canadians, but financial challenges or poor credit can make it difficult. Thankfully, the
Auto Academy
Buy a New Car in Canada
In Canada, buying a car comes with plenty of options to consider. Whether you’re looking at new cars for sale or exploring used ones, there’s something for everyone. You can choose between domestic and imported vehicles, and there are multiple ways to pay: buy outright, finance with a car loan, or lease.
If you’ve done your homework and decided to buy a new car, it’s important to understand the process. Knowing how buying a new car works allows you to approach negotiations and the purchase strategically, ensuring you get the best deal possible.
How to Buy a New Car in Ontario
Buying a new car is a major financial decision and often one of the biggest purchases in life. To make the process easier, here’s a step-by-step guide to buying a new car in Ontario:
- Plan Your Budget
Start by determining what you can realistically afford. Factor in costs like depreciation, taxes, insurance, registration fees, maintenance, and fuel economy. Setting a clear budget will help you narrow down your options. - Do Your Research
Research is key when buying a new car. Look into different makes and models to find one that suits your lifestyle and needs. Online resources like Google, YouTube, manufacturer websites, and reviews are great places to start. - Find the Right Car
Search for new cars for sale at local dealerships, manufacturer websites, third-party platforms, and advertisements. Avoid walking into a dealership unprepared—have a clear idea of the car you want and the price range before starting negotiations. - Test and Inspect
Once you’ve found a car that interests you, schedule a test drive. Inspect the car thoroughly to ensure it meets your expectations and is free of defects or issues. - Negotiate and Buy
When you’ve chosen the car you want, it’s time to negotiate the price with the seller. Decide whether to pay outright or finance the purchase through a loan with monthly installments. Make sure to review all terms carefully before signing. - Prepare to Drive
Before you can hit the road, arrange for car insurance, register the vehicle in your name, and get license plates. These steps are mandatory in Ontario. - Hit the Road
With the paperwork completed and keys in hand, you’re ready to drive your new car and enjoy the benefits of your purchase!
By understanding the process and planning ahead, buying a new car in Ontario can be a smooth and rewarding experience.
Read More: Trading in a Financed Car
Simplify Buying a New Car in Canada with Pre-Approval
Buying a new car can be time-consuming and overwhelming, with many steps to follow to ensure you find the right vehicle. Fortunately, there’s an easier way to navigate the process and get behind the wheel of a new car that fits your budget and lifestyle.
Getting pre-approved for a car loan is one of the most efficient ways to buy a new car in Canada. With pre-approval, you’ll know exactly how much you can afford, helping you focus only on new cars for sale within your budget. This saves you from wasting time researching and shopping for cars you may not qualify for.
Some companies in Canada, like CarRookie, simplify the process by offering services that make getting pre-approval easier. Their team eliminates the hassle of finding the right car and ensures there are no surprises or rejections when it's time to finance your vehicle.
By getting pre-approved, buying a new car in Canada becomes faster, easier, and stress-free.
Read More: 2025 Canada Car Program
A Quick Guide to Car Pricing for Your New Auto Purchase
New cars aren’t cheap, as you’ve likely noticed! When planning to buy a new car in Canada, understanding how pricing works is essential to avoid making a costly financial mistake. The process of pricing and purchasing vehicles for sale new involves several factors, so let’s break down the key elements to help you make an informed decision during your new auto purchase.
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What is MSRP?
MSRP stands for the Manufacturer’s Suggested Retail Price, also known as the window sticker or list price. This is the price set by the manufacturer and is typically the starting point for negotiations. Canadian dealerships often sell vehicles for less than the MSRP, especially when it comes to popular models or competitive markets. However, for high-end, limited-supply vehicles, dealers may insist on sticking to the MSRP.
It’s important to note that the MSRP doesn’t include sales tax or additional dealership fees. These extra costs are often overlooked but play a significant role in determining the final price.
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Taxes and Fees to Consider
In Canada, sales tax includes the federal Goods and Services Tax (GST) of 5%, plus a Provincial Sales Tax (PST) that varies by region. Make sure to check your province or territory’s PST rate to calculate the total tax you’ll pay.
In addition to taxes, you’ll encounter dealership fees that can include delivery charges, documentation fees, and other costs not listed in the MSRP. Be sure to ask your dealer for a detailed breakdown of these fees so you can budget accordingly.
By understanding the pricing structure and being prepared for these additional costs, you’ll be better equipped to navigate your new auto purchase and confidently explore vehicles for sale new in Canada.
What is a Down Payment?
A down payment is an upfront percentage of a car's total price paid at the time of purchase, typically ranging between 10% and 20%. When you buy a new car in Canada, making a down payment can significantly reduce the amount you need to finance.
While down payments aren’t mandatory, they offer several advantages. A larger down payment often results in lower interest rates, reduced monthly payments, quicker approval, and the ability to take advantage of special deals. Additionally, it helps offset the effects of depreciation, ensuring you owe less than the car's value over time.
However, not everyone can afford to make a down payment, especially when purchasing vehicles for sale new. If saving up for a down payment isn’t feasible, consider alternatives like getting a co-signer or improving your credit score to strengthen your loan application.
Negotiating a New Car Price for the Best Deal
Getting the best new car deals has to offer requires preparation and knowledge. When negotiating a new car price, it’s important to understand the pricing structure of new auto sales.
Car dealers aim to sell vehicles at the MSRP (Manufacturer’s Suggested Retail Price), but this isn’t the price they pay for the car. Dealers purchase cars at a lower factory invoice price, which includes discounts and rebates from the manufacturer. Their profit comes from the difference between the MSRP and the invoice price.
To negotiate effectively, research the invoice price of the car you’re interested in and deduct any applicable factory rebates. This will give you an idea of the dealer’s actual cost. While dealers aim to make a profit, most are willing to settle for less than the MSRP, often targeting around a 10% profit margin. Use this as a starting point during negotiations to secure a favorable deal.
Manufacturer Incentives
When buying a new car in Canada, be aware of manufacturer incentives. These incentives, aimed at both dealers and consumers, are designed to boost sales. Consumer-focused incentives are often advertised and can include cash rebates, low financing rates, or special leasing offers.
To maximize savings on your new auto purchase, research available incentives before heading to the dealership. Combining manufacturer incentives with strong negotiation skills can help you get the best possible deal on your new car.
When is the Best Time to Buy a New Car in Canada?
Timing is crucial when it comes to buying a new car in Ontario or anywhere else in Canada. Car dealerships adjust prices throughout the year for various reasons, and knowing when to buy can help you secure the best deal.
November: The Best Month for Discounts:
November is often considered the best time for a new auto purchase in Canada. During this time, dealerships are clearing out older inventory to make room for next year’s models. These “older” cars are still brand new and unused, but dealers are eager to sell them at discounted prices.
End of the Month: Sales Quotas:
At the end of each month, car salespeople are often working hard to meet sales quotas. This can make them more willing to negotiate and offer discounts, giving you an opportunity to buy a new car in Canada at a lower price.
Holiday Promotions:
Special events like “Black Friday” and “Boxing Day” also bring excellent incentives for buying a new car in Ontario. Dealers often participate in these holiday sales with attractive promotions, making it a great time to finalize your purchase.
Read More: The Future of The Car Market in Canada
Tips for Buying a New Car in Canada
- Shop Around: Reach out to multiple dealerships to compare prices and offers. This gives you a better understanding of the competitive pricing available.
- Stick to Your Budget: Know what you can realistically afford and get pre-approved financing to help you stay within your budget. Don’t hesitate to walk away if a dealer isn’t offering a deal that works for you.
- Focus on Total Price: Dealers may try to shift your focus to monthly payments instead of the overall car price. Always negotiate the total price first, and then discuss any incentives or additional financing options.
New Car vs. Used Car: Advantages and Disadvantages
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New Cars |
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Used Cars |
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Can You Buy a New Car with No Credit or Bad Credit?
Buying a new car with no credit or bad credit can be challenging, but CarRookie is here to help. As a trusted car dealership, CarRookie understands the difficulties and works with customers to explore solutions tailored to their needs. Here are some strategies to consider:
- Higher Interest Rates: If your credit is less than ideal, be prepared for higher interest rates.
- Larger Down Payment: Putting more money upfront can increase your chances of approval.
- Credit Improvement: Working on your credit score before buying a new car can open up better financing options.
- Co-Signer Option: A co-signer with good credit can help secure better terms.
At CarRookie, our team will work with you to explore financing options that suit your circumstances, ensuring you can drive away in the car that fits your needs.
Consider Your Options: New vs. Used Cars
If buying a new car isn’t feasible, a lightly used car can be an excellent alternative:
- Cost Savings: A 2-3-year-old car avoids the steep depreciation that new cars face. On average, new cars in Canada lose 20% of their value in the first year and another 15-20% in the following years. By opting for a car just 2 years old, you can save over 30%.
- Warranty Coverage: Many used cars still have coverage under the original warranty, offering peace of mind for repairs.
- Great Condition: A well-maintained used car often provides the same reliability as a new one.
Why Choose CarRookie?
At CarRookie, we don’t just sell cars—we make buying a new car or a quality used car simple and stress-free. Our dealership offers a wide range of options to fit your budget and lifestyle, ensuring you find the perfect vehicle.
Ready to take the next step? Visit CarRookie today to explore our inventory and speak with our team about your financing options. Let us help you drive away in the car you’ve been dreaming of!
FAQs
How much does a new car cost in Canada?
In 2025, the average price of a new car in Canada is around $48,978, a slight decrease from the peak in 2022. However, prices can vary significantly depending on the make, model, and features of the car.
Can a foreigner buy a car in Canada?
Yes, as a non-resident, you can buy a car in any Canadian province or territory, including Ontario, Toronto, Alberta, Quebec, Vancouver, Montreal, Saskatchewan, and British Columbia. Additionally, some financial institutions, like FFUN Financial, offer low-interest loans to help you finance your first car purchase in Canada.
Is it cheaper to buy a car in Canada?
Generally, cars in Canada are cheaper than in the US for several reasons. Manufacturers often price vehicles slightly lower in Canada due to smaller market demand, and the historically weaker Canadian dollar compared to the US dollar plays a role as well. Additionally, it tends to be more economical to build and import cars to the US than to Canada. This trend remains true in 2025, although the price difference can vary depending on the make and model.
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