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Confident Car Buying Starts with these Simple Steps

June 3, 2025
Blogs

Buying a vehicle is one of the biggest financial decisions many Ontarians will make. Whether it’s your first car or your fifth, it’s important to slow down and do your research before signing any purchase agreement.  

Before walking into a dealership, consider your needs and budget.  

Are you looking for a new or used vehicle?  

How much can you afford for a down payment, monthly payments, insurance, and maintenance?  

Know your credit score before you shop. It can play a major role if you’re planning to finance your purchase.  

Another important step to take before visiting dealerships or browsing vehicles online is to visit the Ontario Motor Vehicle Industry Council’s (OMVIC) website, which offers helpful resources for car buyers—covering everything from understanding all-in price advertising to spotting illegal sellers known as curbsiders.  

Taking time to learn your rights under the Motor Vehicle Dealers Act (MVDA) and the Consumer Protection Act, asking the right questions, and planning ahead can help you avoid costly mistakes.  

You’re not obligated to buy on the spot.  

Take your time to think it over and make sure the vehicle fits your needs and budget. Be sure to thoroughly read through the bill of sale before signing.  

Remember, there is no cooling-off period in Ontario—once you sign a purchase or lease agreement, it’s final. 

Why Your Credit Score Matters

Your credit score helps lenders decide whether to approve your financing application and what interest rate to offer. The better your credit score, the more likely you are to qualify for a lower interest rate.  

Also be aware that some dealers have access to several financial institutions and may shop an application to multiple lenders, which can impact your credit score. You may want to speak to your financial institution or credit reporting company for more information about how multiple credit inquiries can impact you. Ask the dealer how many lenders they plan to submit your application to, and make sure the dealer presents all lender approvals to you.  

Tips for Both New and Used Vehicle Buyers:

For New Vehicles:

  • Research models ahead of time. Compare features, prices, and warranties. 
  • Take your time. Don’t rush into signing a contract. Read everything, ask questions, and don’t be afraid to walk away.  

For Used Vehicle Buyers:

  • Request a vehicle history report: Be sure to review a Used Vehicle Information Package (UVIP) or CARFAX before buying a used vehicle. A UVIP provides ownership history and lien information. A CARFAX often highlights incidents or collisions in the vehicle’s history.  
  •  Mandatory disclosures: Make sure all disclosures are in writing. Verbal disclosures do not meet the requirements of the MVDA. Even if the dealer or salesperson mentions a past collision, it must still be clearly stated in writing on the contract. 
  • Get the vehicle inspected: Always have a trusted mechanic do a pre-purchase inspection. This simple step can reveal hidden problems before you buy. 

Before you buy, remember visit omvic.ca for helpful resources, including a shopping tips FAQ, the risks when buying a vehicle privately, and consumer rights information. You can also verify if a dealer or salesperson is registered with OMVIC. 

Slowing down and doing your homework can make all the difference. A smart, informed purchase is one you won’t regret.