A Guide to Buying an Out-of-Province Car in Ontario

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on July 29, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated July 29, 2024

Visit author page

4 minute read

Article Contents

When shopping for a new vehicle, you might find the perfect match in a different province than Ontario. Whether it’s a new or used car, you can buy a vehicle from another province and transport it back to Ontario. What insurance do you need when buying a car outside of Ontario? Is it better to drive your car back to Ontario or have it shipped? Read on to learn everything you need to know about buying an out-of-province car in Ontario.

Buying an Out-of-Province Car in Ontario at a Glance

  • When purchasing a car in a different province, you need to pay the appropriate sales tax for that province. Fortunately, you can get a refund for that particular sales tax after registering the car in Ontario and paying the sales tax in Ontario.
  • After buying a car out-of-province, auto insurance and an in-transit permit are mandatory before you can drive it back to Ontario legally.
  • You can have your newly purchased vehicle shipped to Ontario if you don’t want to deal with driving it all the way yourself.
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Considerations When Buying a Car Out-of-Province

Below are some of the the key aspects you need to consider when buying a car from a different province or country.

Extra research and effort:

When buying a car out-of-province, you may need to commit a lot of time to research whether or not you’re getting the best deal. You’ll also need to make one or more trips to see the car itself and potentially drive it back to Ontario. Consider whether the time and effort you’re spending is worth the money you’re potentially saving by not buying locally.

Verifying the vehicle before buying:

When buying an out-of-province car, inspections are an important part of the process. If possible, check out the car in person to verify the state of the car and whether it has any hidden damage if it’s a used car. If you can’t see the vehicle in person, you can request a vehicle history report from the seller.

Costs and sales tax:

Consider the various costs associated with buying an out-of-province vehicle. These include the cost of the vehicle itself, insurance, shipping or travel costs, and the sales tax for buying the vehicle. You’ll need to pay the appropriate sales tax depending on where you purchase your vehicle, as well as the HST at 13% when you register your vehicle in Ontario. Thankfully, you can get a refund on the initial sales tax when you finish registering your vehicle in your home province.

Registration in Ontario:

Once you’ve brought your out-of-province vehicle to Ontario, you will need to register it with ServiceOntario. Depending on whether you bought the vehicle outside the country or in another province, you’ll need to be ready with the required documents to legally register your vehicle. You can fill out the Application for Vehicle Registration form (SR-LV-006) before visiting a ServiceOntario branch to make the process quicker.

Getting insurance for your vehicle:

Before you can drive any car in Canada, you need to have car insurance. If you want to shop around for better deals on a policy later, you can opt to get temporary out-of-province car insurance in Ontario.

Securing an in-transit permit:

Once you’ve secured insurance for your vehicle, you can obtain an in-transit permit. This is a document that declares your legal eligibility to drive the vehicle from where you bought it to your home province.

Additional paperwork for secondhand cars:

If you’re specifically buying a used vehicle outside of Ontario, you may need to secure a certification that ensures your car conforms to the safety standards set by the province. Check out our Ontario car safety inspection guide for more details.

What to consider before buying an out-of-province-vehicle

Importing a Vehicle from Another Country to Ontario

If you’re purchasing a vehicle from outside of Canada, such as from the United States, there are some extra things that you need to consider.

Firstly, you’ll need to consider whether you’re shipping the car to Canada or driving it through the border. If you’re bringing a car from a neighbouring state, such as New York, you may have an easier time driving back to Ontario. However, if you’re buying a car from anywhere further than that, you may want to consider having it shipped to your home.

Import costs are an important factor when thinking of buying a car from abroad. You’ll need to consider the duty fee and import taxes when importing a vehicle to Ontario. These can vary depending on the make and model of your car but generally run into the thousands of dollars.

How Much Does it Cost to Ship an Out-of-Province Car to Ontario?

Shipping an out-of-province car to your home in Ontario can be a good option if you don’t have the time or energy to drive it all the way back. However, you should be aware that the costs to ship a car can be significantly higher than the price of gas and other expenses when driving it to Ontario.

Here is how car shipping companies calculate the fee for shipping your car to your home:

The heavier your car is and the more space it takes up in a container, the higher the shipping fee will be. More weight means more fuel consumption for the transport vehicle, and the more space your car takes up in the shipping container, the less there is for other cars.

The most distinct factor for shipping costs is the distance your car needs to be shipped. Shipping a car from Quebec to Ontario will be much cheaper than shipping the same car from British Columbia.

You can choose between two container types when shipping a car: closed or open containers. Closed containers will protect your car from sustaining damage from debris, inclement weather, or other factors, while open containers will not. Shipping an expensive or luxury car in a closed container is generally a good idea to keep it pristine while choosing an open container for a cheaper or used car can save you some money.

The shipping fee for your car can vary greatly based on these factors, but it generally costs between $700 and $2,000 for midrange cars from non-luxury brands. You may also need auto insurance before shipping the car in case anything happens during the transport process.

Key Advice from MyChoice

  • Consider shipping luxury or vintage cars in a closed container to protect them from damage. Conversely, ship midrange cars from regular brands in an open container to save some money on the shipping fee.
  • When buying a car from outside of Canada, you will need to pay import taxes and duty fees on top of the shipping fee.
  • Get your paperwork ready before registering your car at ServiceOntario to avoid delays and keep the registration process smooth and fast.
  • You can get temporary insurance for your vehicle if you’re driving it from another province to Ontario and want to get a full auto insurance policy later.

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