Buying a New Car

Information on the paperwork and process involved when buying a car from a dealership...

New cars are sold by car dealers and online. There are no restrictions for foreigners buying cars in Canada.

Buying through a car dealer

Car dealers have information and price guides on new cars. These dealers are appointed by the manufacturer, and provide a one-stop-shop for buying, servicing and repairing vehicles.

Visit the chosen dealership and negotiate a price.

Buying online

Cars can also be bought online. There are a number of websites which allow buyers to compare prices, and get the best deals. Through and, a buyer can choose the new car they want to buy, and are advised the price of that particular model.

Taxes on a new car

Goods and Services Tax (GST), Provincial Sales Tax (PST) or Harmonized Sales Tax (HST, which is GST and PST combined) may be applicable to the purchase of a new car. GST is set at five percent and is a federal tax, therefore payable everywhere. PST and HST rates vary across the provinces and territories; for example it is 15 percent in Nova Scotia and 13 percent in Ontario. In Alberta only GST is applicable as the province of Alberta does not have PST or HST.