Buying a new car: the legal requirements

Note: we can answer any questions related to buying a premium used car in Cambridge Ontario. Just ask our experts.

Buying a new car comes with several legal requirements, which you will have to meet before driving your new vehicle off the car dealership’s lot. These are not very difficult to comply with, but it pays to be informed about what is necessary and ensure you have everything you need when you visit the dealership. Here are the essential requirements of the car buying procedure in Canada.

Canadian requirements

In all Canadian provinces, there are three essential things you must have before you can complete a car purchase. There is some variation from province to province, but the requirements are essentially the same across the country. You need three documents in order to be able to buy a car:

• A valid Canadian driver’s license: In some provinces, this is not a requisite. If you are a Canadian national, you probably already have your license. If you are an immigrant, it is possible to surrender your license from your home country and exchange it for a Canadian one. You simply need your existing license, proof of at least two years’ driving experience, and the necessary fee. You may also need to provide proof of your right to stay in Canada.
• A valid vehicle insurance policy: Federal law mandates that each car owner has third-party insurance before purchasing a car. In fact, you can’t even register your vehicle unless you have insurance. Each province has a different specified minimum amount for third-party insurance, and some also stipulate that you need to have medical insurance for medical expenses and loss of income before owning a car. You must have a driver’s license in order to qualify for car insurance.
• Vehicle registration: You are not the owner of your vehicle until it is registered in your name. In order to register, you need your license, your proof of insurance, and several other documents, including a certificate of sale, a certificate of title, and miscellaneous bits of information such as the odometer reading and the license plate number. If you buy through a dealer, all of this will be arranged for you.

Car titles

When you register your car, you will receive a car title, which contains all the essential information about your vehicle, including the car license number and the name and address of the owner. Again, your dealer will arrange this documentation for you.

Fees and bills of sale

The transaction may include administrative costs, such as transfer fees. Your dealer will explain these costs to you while you are concluding the purchase. A bill of sale will be provided once the transaction is complete, which is necessary in order to get the vehicle registration.

CRS Automotive makes the legal requirements of buying a new car easy to handle. We will arrange all the necessary paperwork and make the procedure as hassle-free as possible. Contact us for more information or visit our sales center in Cambridge, ON.

We are located only 3 min driving South West of Little Rays Reptile Zoo and Nature Centre and 4 min driving South West of Hamilton Indoor Go Karts.