Canada – Buying or Importing a Car

How do I buy a new car in Canada as a foreigner?

Purchasing a car in Canada involves very few formal barriers for foreign nationals. A valid driving licence is required, and dealerships will expect you to demonstrate that you have appropriate vehicle insurance in place before you take possession of the vehicle. Canadian citizenship or permanent residency is not a legal prerequisite for buying a car, which makes the process considerably more accessible than, say, acquiring property or establishing certain financial accounts.

Providing proof of address is a key step when purchasing as a non-resident. If you are visiting temporarily, the address of your hotel or short-term accommodation can suffice. For those holding work permits or study permits, both the dealership and any insurer will typically expect a current residential address within Canada.

Standard documentation requested at a dealership includes a valid passport or government-issued photo identification, a driving licence (foreign licences are generally acceptable at the point of purchase), evidence of a Canadian address, and any relevant immigration paperwork such as a work or study permit. If you intend to finance the vehicle, lenders may ask for a Social Insurance Number (SIN) or Individual Tax Number (ITN) to evaluate your creditworthiness.

Several major banks, including the Royal Bank of Canada (RBC) and Scotiabank, have developed lending programmes specifically for newcomers who have not yet established a Canadian credit history. These programmes often come with restrictions — such as a lower maximum loan amount, a higher required down payment, or elevated interest rates — but they can still provide a viable path to vehicle financing. For those who find loan approval difficult due to a limited credit profile, paying in cash or making a substantial deposit remains the most straightforward option.

Most major car manufacturers selling new vehicles in Canada offer some form of incentive scheme for new arrivals or first-time purchasers. These can include price reductions — typically in the range of CAD $500 to $1,000 — or preferential financing terms designed to ease the approval process. It is worth asking dealerships directly about any such programmes when you visit.

Sales tax applies to all vehicle purchases and takes the form of a Goods and Services Tax (GST), a Provincial Sales Tax (PST), or a Harmonised Sales Tax (HST), depending on the province of purchase. The total rate generally falls between 5% in Alberta and approximately 15% in provinces where HST applies. Always verify the applicable rate in your province with the relevant provincial revenue authority.

How do I buy a used car in Canada?

Used vehicles are available through franchised dealerships, independent second-hand car lots, and private sellers. Licensed dealers operate under provincial regulations and are obliged to meet disclosure standards, affording buyers a higher degree of consumer protection. Private sales can be cheaper but place more responsibility on the buyer to conduct their own investigations.

Before finalising any used vehicle purchase, you should obtain a vehicle history report. In Canada, CARFAX Canada is the principal tool for this purpose, providing information on prior accidents, odometer readings, previous ownership registrations, and whether a vehicle has ever been written off or declared a total loss. Some provinces offer additional official resources — in Ontario, for instance, the Used Vehicle Information Package (UVIP) is a mandatory disclosure document that sellers must provide, covering registration history, any registered liens, and the vehicle’s assessed retail value.

When buying a used vehicle in Ontario, the seller is legally required to hand over the UVIP, which you will also need to complete the registration process. It is essential to check whether any outstanding finance is secured against the vehicle before you commit to a purchase — if a lien exists, the associated debt could pass to you as the new owner. A CARFAX report or an equivalent provincial check will identify any registered liens.

At the point of transfer, you should receive: a signed bill of sale that states the agreed price, the vehicle identification number (VIN), make, model, and both parties’ details; the original vehicle permit or ownership document with the seller’s portion of the transfer section completed; and any available service records. The bill of sale is also needed when you register the vehicle so that the correct amount of tax can be calculated and collected.

When acquiring a used car from a private individual in Canada, sales tax is payable at the time of ownership registration. This tax is assessed on whichever figure is greater — the declared purchase price or the vehicle’s wholesale value as determined by the province — so simply understating the sale price will not reduce the tax owing. Once the transaction is complete, you must transfer ownership through your provincial motor vehicle authority within a defined window: six days in Ontario and 30 days in Quebec, for example.

Can I import a vehicle into Canada, and how does the process work?

Any vehicle brought into Canada from abroad must comply with all applicable Canadian import laws. Oversight of the importation process is shared between two federal agencies: the Canada Border Services Agency (CBSA), responsible for customs clearance and duties, and Transport Canada, which establishes vehicle safety and emissions standards. The Registrar of Imported Vehicles (RIV) — a private body working under contract to Transport Canada — administers the post-border compliance inspection programme.

Vehicles that are 15 years of age or older are generally exempt from the requirements of the Motor Vehicle Safety Act (MVSA), but they must still satisfy CBSA requirements, which include inspections for soil contaminants and verification of ownership documentation. Vehicles under 15 years old must fully comply with Canadian Motor Vehicle Safety Standards, meaning they must have been manufactured to Canadian or US specifications, or be modified to meet those standards either before or after importation.

Canada permits only the permanent import of left-hand drive vehicles. Right-hand drive vehicles are not admissible for permanent importation and cannot be licensed for road use in Canada. This is a critical point for anyone considering bringing a vehicle from a country where traffic travels on the left.

It is possible to bring a vehicle into Canada on a temporary basis without going through the full importation procedure. However, if your immigration status subsequently changes to that of a permanent resident, the vehicle must either meet all applicable import requirements or be exported. New permanent residents who bring a vehicle upon first settling in Canada may be eligible for a settler’s exemption, which can reduce or waive certain duties — check with CBSA for current eligibility criteria.

The step-by-step import process is set out in the section below. For comprehensive guidance, refer to CBSA Memorandum D19-12-1 (last updated October 2024) and the Transport Canada FAQ on importing vehicles from the US.

How to import a vehicle into Canada: step by step

1. Check vehicle admissibility: You will need to deal with both CBSA and the Registrar of Imported Vehicles (RIV). Visit the RIV website to find out whether your vehicle is allowed to enter Canada, ensuring it satisfies Canadian safety and emissions regulations and checking for any outstanding recalls.
2. Notify US Customs (if importing from the US): You must provide notice of exportation to US Customs and Border Protection (CBP) at least 72 hours prior to arriving at the port of crossing.
3. Declare at the Canadian border: Present the vehicle, proof of ownership (title), bill of sale, and a completed Vehicle Import Form (Form 1) to CBSA officers at the port of entry. Pay any applicable duties and taxes at this point.
4. Obtain the RIV inspection document: CBSA will provide an inspection document confirming the vehicle has been admitted. The RIV will register the vehicle and send you an inspection checklist detailing any modifications required.
5. Complete required modifications: Make any changes needed to bring the vehicle into compliance with Canadian safety standards (e.g. daytime running lights, speedometer markings, emissions equipment). These must be completed within a specified timeframe — currently 45 days after import or before the vehicle is driven in Canada.
6. Pass the RIV inspection: Take the vehicle to an approved inspection station to verify compliance. The RIV will issue a compliance certificate once the vehicle passes.
7. Register the vehicle provincially: With the RIV compliance certificate in hand, proceed to your provincial motor vehicle authority to register the vehicle and obtain licence plates.

What are the costs involved in importing a car to Canada?

The financial outlay associated with importing a vehicle extends well beyond the purchase price itself. Anyone planning to import should account for all of the cost categories listed below, and confirm current rates directly with CBSA and the RIV, as fees and duty rates are subject to change.

For vehicles sourced in the US that already conform to North American safety and emissions standards, the Canadian import process is relatively manageable compared to countries such as Australia, which imposes its own compliance levy and stringent emissions rules. Vehicles originating outside North America present considerably more complexity and expense, as they are more likely to need modifications and may not be eligible for duty-free treatment. Always verify current figures directly with CBSA (toll-free: 1-800-461-9999) and the RIV before committing to an import.

How do I register a vehicle in Canada?

Registering your vehicle in the province or territory where you live is a legal requirement throughout Canada. This process is administered by individual provincial and territorial governments rather than a single national authority. Each province operates its own motor vehicle or transport body — for example, ServiceOntario in Ontario, the Société de l’assurance automobile du Québec (SAAQ) in Quebec, and ICBC in British Columbia, where registration is linked to the insurance system.

Regardless of which province you are in, you will almost always need a valid driver’s licence or other government-issued identification, proof of insurance, and a bill of sale or ownership transfer document. Depending on your circumstances, you may also need a safety standards certificate for used vehicles and any existing licence plates if you are moving them from another car.

The registration procedure differs depending on whether you purchased your vehicle from a dealer or a private seller. Dealerships typically handle the registration on your behalf when you buy a new or used car through them. For private purchases, however, you are responsible for completing the ownership transfer at the appropriate provincial service office.

For both first-time registrations and private-sale transfers, most provinces require an in-person visit to an official service centre, rather than permitting fully online registration — this ensures that all documents are properly reviewed and legally validated. Deadlines for completing registration vary: Ontario allows six days from the date of purchase, while Quebec permits up to 30 days.

Imported vehicles, substantially modified vehicles, or those being converted to a new purpose may require additional documentation — such as a vehicle import form — to confirm compliance with Canadian standards. Vehicles brought in from abroad will also need to present the RIV compliance certificate before provincial registration can proceed.

Once registration is finalised, you will be issued a registration sticker — or decal — for your licence plate (or a new plate altogether), along with a vehicle permit. This permit must be kept in the vehicle at all times, as law enforcement may ask you to produce it during a traffic stop.

Outstanding fines or unpaid parking violations should be resolved before attempting to register a vehicle, as virtually all provinces — including Ontario — require that any such arrears be cleared before registration is approved.

What insurance do I need to drive legally in Canada?

Vehicle insurance is mandatory in every province and territory across Canada, and you must have it in place before your vehicle can be registered. The auto insurance landscape in Canada is notable for varying considerably by province. While most provinces rely on private insurers and brokers operating in a competitive market, British Columbia, Manitoba, and Saskatchewan each have a government-run public insurer that provides basic mandatory coverage — a model loosely analogous to how certain countries administer state health insurance alongside private alternatives.

In British Columbia, the Insurance Corporation of British Columbia (ICBC) supplies basic auto insurance. Manitoba’s equivalent is MPI (Manitoba Public Insurance), while in Saskatchewan the role is filled by SGI (Saskatchewan Government Insurance). In all remaining provinces — including Ontario, Quebec, Alberta, and the Atlantic provinces — drivers purchase insurance through licensed private companies or brokers, with minimum coverage levels set by provincial legislation.

Across all provinces, third-party liability insurance is the mandatory baseline, covering bodily injury and property damage you cause to other parties. The required minimum liability limit varies by province, though CAD $200,000 is typical; most insurance professionals recommend carrying at least CAD $1 million in coverage. Certain provinces also require no-fault accident benefits coverage as part of the standard policy structure.

When applying for insurance, it is advisable to bring at least five years of driving history documentation; without it, insurers may classify you as a new driver, which typically results in substantially higher premiums. Canadian insurers generally cannot factor in insurance records from outside Canada and the United States, as those systems are incompatible and records are inaccessible — though evidence of prior driving experience may still be taken into account. As a result, even highly experienced drivers relocating to Canada may initially face elevated premiums until a Canadian insurance track record is established.

If you are in Canada on a short-term visitor visa and already hold insurance in your home country, check whether your existing policy extends to driving in Canada. For longer stays, a Canadian policy will be necessary. Always confirm minimum coverage requirements with your provincial insurance regulator — for example, the Financial Services Regulatory Authority of Ontario (FSRA) for Ontario, or the Autorité des marchés financiers (AMF) for Quebec.

What driving licence do I need in Canada as an expat?

When you first arrive as a new resident, your existing foreign driver’s licence will typically remain valid in Canada for between 60 and 90 days, though the precise period varies by province. Some provinces extend this grace period to three months, while others may allow up to a year. Once the permitted period elapses, you are required to exchange your foreign licence for a provincial one. This requirement applies even when relocating from one Canadian province to another.

The standard obligation is that a foreign licence must be converted to a local provincial licence after a defined period, the duration of which depends on the specific province or territory. Moving between provinces triggers a similar requirement to re-licence locally.

An International Driving Permit (IDP) is recognised in Canada as a supplementary document used alongside a valid foreign licence, and it can be helpful during the transitional period before a provincial licence is obtained. It is not, however, a replacement for a provincial licence once the grace period has passed. While Canadian law does not mandate an IDP, carrying one together with your home country licence can be practically useful — particularly if your licence is issued in a non-Roman script.

Many provinces have established reciprocal licence exchange agreements with certain countries, enabling eligible drivers to convert their foreign licence to a provincial one without sitting a full knowledge or road test. The list of eligible countries and the specific conditions of exchange differ from province to province. In British Columbia, for instance, new residents have 90 days to convert their home licence, and the process is straightforward for applicants with at least two years of driving experience from a country covered by the province’s reciprocal arrangement.

Depending on the province, the exchange process may require you to present your work permit, proof of residence, and/or a driving history summary. For Ontario, consult the ServiceOntario foreign licence exchange page. For British Columbia, visit ICBC. For Quebec, refer to the SAAQ website. Each provincial authority maintains a current list of eligible countries and required documentation.

How do I sell a car in Canada?

Vehicle sales in Canada are governed at the provincial level, and the broad procedure is consistent across most provinces. As the seller, your primary obligation is to formally transfer ownership so that you bear no ongoing legal responsibility for the vehicle after the transaction is concluded.

Before advertising the vehicle, assemble the following materials: the vehicle permit or ownership certificate (the Canadian equivalent of a logbook such as the UK’s V5C), any available service records and maintenance history, the results of any recent safety inspections, and — where applicable — an emissions test certificate. Voluntarily providing a CARFAX Canada report will reassure prospective buyers about the vehicle’s history and can facilitate a quicker sale.

At the point of sale, you must: fill in the transfer of ownership section on the vehicle permit; give the buyer a signed bill of sale that records the vehicle identification number (VIN), the agreed purchase price, the date of sale, and the full names and addresses of both parties; and hand over all keys, the vehicle permit, and any maintenance documentation. In Ontario, private sellers are additionally obliged to provide the buyer with a Used Vehicle Information Package (UVIP) before the sale is completed.

Once the vehicle has changed hands, notify your provincial motor vehicle authority to confirm the transfer. This step protects you from potential liability for parking violations, tolls, or incidents that occur after the sale date. In most provinces, this notification can be submitted online or in person. Before handing over the vehicle, remove the licence plates — in the majority of Canadian provinces, plates are registered to the owner rather than the vehicle, so you keep them and may either surrender them to the province or transfer them to a subsequent vehicle.

From a tax perspective, privately sold vehicles in Canada are typically treated as personal-use assets. Under federal tax law, capital gains technically apply if a personal-use vehicle sells for more than its adjusted cost base. In practice, because vehicles almost universally depreciate over time, a taxable capital gain on a personal vehicle is rare. If the vehicle was used for business, different rules may apply. Seek advice from the Canada Revenue Agency (CRA) or a qualified tax adviser for guidance specific to your situation.

Are there any ongoing costs or obligations for vehicle ownership in Canada?

Canada has no single national annual vehicle tax comparable to the UK’s Vehicle Excise Duty. Instead, the recurring costs of owning a vehicle are made up of provincial registration renewal fees, mandatory insurance premiums, fuel expenditure, and — in some provinces — periodic safety and emissions testing requirements.

Registration renewal: Most provinces require vehicle registration to be renewed either annually or every two years. The renewal process itself is far less involved than the initial registration. Fees differ by province and vehicle type; consult your provincial motor vehicle authority for the current rate. As of 2024, Ontario introduced automatic licence plate renewal for qualifying drivers who have no outstanding fines and hold valid insurance.

Mandatory insurance: Car insurance represents a recurring annual expense and remains a legal requirement for the entire period of vehicle ownership. Premiums vary widely according to province, driving history, vehicle type, and the location where the vehicle is kept overnight. As noted earlier, newcomers may initially face higher premiums while they accumulate a Canadian insurance record.

Safety inspections: Unlike the annual MOT roadworthiness test in the UK and Ireland, Canada has no single mandatory annual inspection programme for privately owned passenger vehicles already in use. Some provinces do, however, require safety inspections in specific circumstances — such as when a used vehicle changes hands, when a vehicle is first registered in a new province, or when a vehicle is suspected of having a safety defect. New Brunswick, for example, mandates a safety inspection for used vehicle registration. Always check the rules applicable in your specific province.

Emissions testing: Emissions testing requirements are determined at the provincial level and are not uniformly applied. Ontario previously ran Drive Clean, a mandatory emissions testing programme, but discontinued it for light-duty vehicles in 2019. Quebec and British Columbia maintain their own emissions-related requirements in designated regions. In British Columbia, vehicles in the Fraser Valley or Lower Mainland may be required to pass an emissions test. Check with the relevant provincial environmental or transport authority for the current obligations in your area.

Fuel costs: Petrol prices in Canada differ considerably from province to province and fluctuate in line with global oil markets and federal and provincial carbon pricing policies. Fuel is sold by the litre. As of early 2025, current pump prices can be tracked through resources such as GasBuddy Canada or the Natural Resources Canada fuel price monitor.

Frequently asked questions

Can I buy a car in Canada if I only have a tourist visa?

Purchasing a car in Canada as a non-resident tourist is permitted under Canadian law. However, you will need a valid address in the province where you intend to register the vehicle, and not every province allows tourists to register a vehicle in their own name. British Columbia, Quebec, and New Brunswick are among those that do permit tourists to register a vehicle. Always verify current requirements with the relevant provincial authority before making a purchase, as rules can change.

Do I need a Canadian credit history to finance a car?

Most standard auto loan products require an established Canadian credit history. Newcomers who have not yet built one may be able to access new-arrival lending programmes at major banks such as RBC and Scotiabank, though these typically involve a higher down payment or elevated interest rates. Buying outright with cash removes the credit history requirement entirely. Confirm the current terms of any newcomer financing programme directly with the lender before applying.

Can I import a right-hand drive vehicle into Canada?

No. Because Canada drives on the right-hand side of the road, right-hand drive vehicles are not admissible for permanent importation or registration. Only left-hand drive vehicles may be brought in on a permanent basis. Visitors may temporarily bring a right-hand drive vehicle into Canada, but it cannot be permanently registered for road use. Confirm the current rules with Transport Canada.

What is the 15-year rule for importing vehicles into Canada?

Vehicles aged 15 years or more are generally exempt from Motor Vehicle Safety Act requirements, but they must still satisfy Canada Border Services Agency conditions, including inspections for soil contaminants and confirmation of valid ownership documentation. This exemption does not mean older vehicles can be imported without any scrutiny. Always confirm the current age threshold with CBSA and Transport Canada, as the regulations may be amended over time.

How long does it take to register an imported vehicle in Canada?

Following customs clearance at the border, the RIV process — which covers any required modifications and the compliance inspection — must generally be completed within 45 days. Once the RIV compliance certificate has been issued, provincial registration can typically be finalised within a matter of days, provided all paperwork is in order. From border crossing to obtaining a fully registered, road-legal vehicle, the overall timeline is commonly one to three months, depending on how quickly modifications are carried out and inspections scheduled.

Will my overseas no-claims driving history be recognised by Canadian insurers?

In most cases, Canadian insurers are unable to take into account insurance records from outside Canada and the United States, as those records are inaccessible and the systems are not compatible — although some may consider prior driving experience. This means many newcomers face higher initial premiums. Presenting a letter from your previous insurer that documents a claims-free history may carry some weight with certain providers, even where it is not formally recognised. Shopping around and consulting multiple brokers is advisable. Your provincial insurance regulator can provide a list of licensed insurers in your area.

Is there an annual vehicle road tax in Canada?

Canada does not have a direct equivalent to an annual vehicle road tax such as the UK’s Vehicle Excise Duty or France’s vignette. The closest comparable charge is the provincial registration renewal fee, which is paid on an annual or biannual basis and varies by province and vehicle category. There is no national road tax disc or sticker system. Check current renewal fees with your provincial motor vehicle authority.

What happens to my vehicle registration if I move to a different province?

Relocating to a new province generally means you must re-register your vehicle there and exchange your driving licence for a provincial one within the applicable grace period, which is typically 60 to 90 days. You will need to bring your existing registration documents, proof of insurance from a provider licensed in the new province, valid identification, and confirmation of your new address. Check the specific requirements with the motor vehicle authority in the province you are moving to before you arrive.