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Things To Check While Buying A Used Car: A Complete Checklist

When you drive a new vehicle out of the dealership, its price typically depreciates by 10% instantly, and over the next 5 to 6 years, it can depreciate by around 50%. Thus, purchasing a new car might not be  a wise investment, especially if you are a student or you just moved to Canada. Opting for a used vehicle is a great way to save money. However, buying a second-hand car can be a daunting decision due to fear of getting scammed into buying a lemon resulting in a waste of your money. 


Before purchasing a used car, you must check things, like vehicle history, the number of owners, engine condition, paint, tires, suspension, paperwork, insurance, etc. This process can become overwhelming and daunting for some people. To make the process easier, we have shared with you the  complete guide to buying a used car in Canada. It also includes a detailed used car buying checklist so you don't make any critical mistakes while making the final decision.


Things To Check When Buying A Used Car

Irrespective of where you buy the car from, always inspect it thoroughly to ensure there are no major issues. You can also take the car to a mechanic for a proper inspection. We advise you to  purchase a car in broad daylight because floodlights and evenings may not show  the defects in the vehicle. Carry out a detailed mechanical inspection and follow the important points mentioned below.


Check The Tires

The tire says a lot about the car and its age. One of the first things to check while buying a used car is the tire. A car with less mileage and driven only 25,000 km should have original tires. However, the life of a tire depends on the owner's driving style and the vehicle type. Be skeptical of purchasing cars that are less driven and have their tires replaced. Also, check if all four tires of the vehicle are of the same brand. If not, you must inquire about their replacement. If you see cracks on the sidewall, worn-out treads, bulges, or steel wires sticking out, you will need new tires soon. In this situation, you can negotiate the price of the car. A great way to be sure of how much life the tire has is to use a tire tread depth gauge. It's a simple tool and can be used to measure tire tread depth. You can also use the penny method to check the tire’s condition. Refer to our quick guide on how to check tire tread depth.


If the tread wear is uneven or worn out at one edge and fine on the other, the vehicle likely has an alignment problem. Also, check the tires for even tread depth along the circumference of the tire to ensure the depth is the same and there are no signs of cupping. This can happen due to worn-out shocks and struts. The average cost of strut replacement can be somewhere between $250 to $600 excluding labor charges. Finally, check if the spare tire is in good condition and if the vehicle has a jack and lug wrench.

Check The Interiors

The interior of a car matters the most because that's where you spend the maximum time while driving. You do not want an interior with a foul, mildewy, or musty smell. Before checking the other parts inside the vehicle’s cabin, check for water leaks, and wet spots under the floor mat or carpet. Check for the lighter, ashtray, and seat for acrid smells that are usually caused by a smoker who owned the car. These smells are hard to get rid of and should be inspected before purchasing a second-hand car. Follow the interior checklist to buy a used car below.


a) Seats

Check the seats and see if they are in good condition and not severely damaged. Minor scratches, holes, or signs of wear are acceptable and normal in an old car, but the seat adjusting mechanism should work properly. Try all the seat adjustments while sitting in the driver's seat and make sure they offer you a comfortable driving position. Seat covers can be changed with new ones, but a faulty seat mechanism can add to the repair costs.


b) Instruments And Controls

Turn on the ignition key without cranking the engine. The lights and warning signs on the dashboard should illuminate for a few seconds and then turn off. Some of the warning lights are Check Engine Light, Airbag (SRS), Anti-Lock Brakes (ABS), Anti-Theft Security Light, etc. Check the steering switches and levers to ensure they are working fine. The wiper lever and light switches are important and should be in good working condition before you take the car out on the road.


c) Sound System

While buying a used car, check if it is equipped with a properly functioning sound system. If the vehicle has AM, FM, and satellite radio reception, ensure it's working properly. Older cars might have a CD player or a simple plug-and-play feature. If the car is comparatively new, it might even have a touch screen and an infotainment system with an in-built GPS and reverse parking cameras. Check all these systems to ensure they are functioning properly.


d) Roof And Trunk

The roof of the vehicle is where water can enter the passenger compartment. Check the headliner and roof trim for stains or any signs of water leakage. Ensure the doors and windows fit properly and offer a perfect seal, and avoid water from seeping in. If the vehicle has a sunroof, ensure it opens and closes appropriately and offers perfect sealing with no leakage. If it's a convertible, inspect the convertible top for holes, frayed edges, and potential spots of damage. The next step is to check the trunk and look for signs of water entry. Check the carpets and trunk liner for foul smells. Finally, ensure the spare wheel well is dry and has no sign of rust or corrosion.


Under The Hood And Engine Components

When the engine is cold, inspect the general condition of the engine bay area. Dust and dirt are fine, but there should be no signs of oil spills around the engine. This could be a sign of an oil leak. Also, check the battery terminals for corrosion, hanging wires, stripped electrical connections, or loosely hanging wires.


a) Engine

Get inside the vehicle and check if the engine cranks easily when it's cold and if it idles smoothly. Then let the engine warm up for a minute and see how it idles. If the idling is erratic and the RPM needle fluctuates a lot, the engine might have a problem with fuel, ignition, or vacuum. With the engine running, turn on the heater to see if it performs fine and heats the car optimally. Turn the temperature dial to both hot and cold to see if it is functioning properly without any issues.


b) Fluids

Automotive fluids are vital for the functioning of various systems like brakes, power steering, windshield washing system, transmission, engine cooling systems, etc. Refer to the owner's manual to know where to look for various fluids. The engine oil can be checked easily by pulling out the engine oil dipstick. If the engine oil looks dark brown or honey-colored, it's comparatively new and might have been replaced recently. If the dipstick has water droplets or dark black engine oil, it might need replacement. Other than the color and appearance of the engine oil, ensure it is filled to an optimum level. Some dipsticks are provided with hot and cold markings, indicating the oil levels for a cold and hot engine. Also, check the automatic transmission fluid to ensure it doesn't have a burnt odor. Wipe the dipstick on a rag to ensure there are no visible metal particles because this can be a sign of serious transmission wear. Finally, check the power steering, coolant, and brake fluid reservoirs to see if they are filled to the recommended limits.


c) Belts And Hoses

Check if the engine belt is in good condition and not loose. A common symptom of a loose engine belt is a loud squeaking noise when the engine is turned on. If the car shows such a symptom, the belt might need to be replaced soon. Also check the hoses and pipes running to the radiator, air conditioner, and other parts. The hoses must be attached properly and the rubber should be firm and supple. The hoses should not feel very hard, cracked, or very soft with bubbles or swelling.


d) Radiator

While checking the radiator, look at the radiator fins. It should not be bent at several places. Few bent fins are acceptable given the vehicle's mileage and how old it is, but if too many fins are damaged, it can affect the cooling efficiency of the vehicle. Also, locate the radiator reservoir to see the coolant color. It should be bright green or orange and not be a rusty, dark, or milky coolant as this can be a sign of a faulty radiator. Finally, ensure there are no green stains on the radiator, as this can be a sign of a ‌leak.


e) Battery

Check the battery terminals for corrosion and signs of deterioration. Maintenance-free car batteries are very common today and some of them have a built-in charge indicator. If the indicator shows a green color, it means the battery is in good condition. If it shows a yellow or black color, that battery might die and run out of charge anytime soon. In a flooded battery, you can also check its condition by removing the filler caps and checking each cell independently. A low liquid level in a cell means the battery has been working hard. You can also test the battery yourself using a multimeter to ensure it's functioning properly and has enough charge left.


Check The Exterior

The vehicle's body and outer appearance are the first things that draw the  attention of the customer and other people. Therefore, it's essential to check the body parts, lights, and other panels before buying a used car to ensure it looks good and is free of dents and dings. Follow the checklist before buying a used car below.


a) Body

Start checking the vehicle's body by inspecting the roof, doors, hood, fenders, bumpers, and other panels for scratches, dents, and rust. A used car might have been in an accident and fixed later. One way to check if a body panel has been fixed after a dent is to use a magnet over it. A dent treated with a body filler won't allow the magnet to stick to that particular spot. Another thing to look at is large gaps between two body panels, like quarter panels and fenders or bumpers and front fenders. In case of an accident or a fender bender, these panels do not realign perfectly and are a clear sign ‌the vehicle has been through shoddy repair work. Inspect door seals for damage and signs of tearing. Ensure all panels are fine, painted, and show no swelling or rust. Also, check the chassis and the frame underneath the vehicle for rust. The undercarriage of the vehicle is exposed to water and road salt, which leads to corrosion. Small areas of corrosion and rust can be treated. However, if the frame is peeling off and if the rust has started to develop holes in the frame, avoid buying the car.


b) Windshield, Glasses, And Mirrors

Windshield and door glasses can be inspected easily. Ensure there are no cracks. A small stone chip or minor crack at the side of the glass can help you negotiate the price but is not a cause for alarm. However, a major or noticeable crack in the windshield can worsen and lead to a costly repair. Check the rear view and side mirrors as well for proper functionality. If the vehicle has automatic folding side-view mirrors or heated mirrors, ensure they are functioning properly.


c) Lights

A big concern in old cars is fogged headlights. Over time, the headlights can get fogged by moisture, making them pale and dull. This reduces the illumination and visibility while driving at night. Check all the bulbs, indicators, high beam, low beam, and tail lights to ensure they are working properly. You don't want a ticket right after you buy a used car.


Check Under The Vehicle

A major component to check under the vehicle is the exhaust system. It should be in decent condition with little surface rust. Heavy rust means the exhaust system can leak ‌soon. Also, check if the tailpipe, catalytic converter, and complete exhaust system assembly are firmly secured with hangers and bolts with no sign of looseness. While inspecting under the vehicle, check for oil leaks. If the vehicle has been parked for long, look for oil puddles, signs of oil, or coolant spots. If possible, get under the vehicle and use a flashlight to inspect oil leaks, leaky gaskets, and signs of impacts or skids on the engine components. Finally, check the CV joint boots, axle shafts, and tie rods for damage. A leaking, torn, or split CV joint boot can lead to another costly repair. A CV axle shaft replacement cost can be around $600 to $1200, depending on your vehicle’s make and model.


Take A Test Drive

Apart from visual observation and general vehicle inspection, it's important to test drive the used vehicle before purchasing it. Take a 10-minute drive around the block to see if you notice any problems. A test drive is an essential thing on your used car buying checklist, and here are a few things to consider:

  • While driving the vehicle, apply brakes a few times to make several stops. This will heat the brakes and allow you to spot any pulsation on the brake pedal. Brake pedal pulsation is a common symptom of a warped brake rotor or rotor runout. In such a situation, you should negotiate the price while buying a used car from the dealer.
  • Ensure the steering system is functioning efficiently and the steering wheel doesn't wobble or wander. A vibrating steering wheel can indicate a bad steering system, misaligned wheels, and imbalanced tires. Misaligned wheels can cause the car to wander left or right. However, it can also be caused by worn-out suspension parts, improper tire pressures, and bad wheel hub bearings. While buying a used car from a dealership, ask to get these issues fixed because a wheel alignment will cost you $100-$150, and the average cost of front wheel hub assembly can range between $220 to $580.
  • The next important thing to check while buying a used car is the transmission system and engine performance. A smooth gear shift is a good sign for a vehicle and shows the transmission is in good condition. Accelerate the vehicle from the rest to 60-80 kmph. The vehicle should show no signs of hiccups and lag in power delivery. Smooth power delivery on highways and on a slope shows that there are no driveability and fueling issues with the engine. If the dealer allows, you can also perform an ECU scan using an Onboard Diagnostic (OBD) tool.


Take The Vehicle To A Mechanic

Before you close the deal and finalize a vehicle after thoroughly inspecting it, you can get it checked by a mechanic too. Buying a used car from a dealership can be tricky because some salespersons do not allow you to refer to a mechanic. However, you can insist and ask the seller to drive to the inspection shop. If the salesperson agrees, a mechanic would ask $100 - $150 to inspect your car and carry out a thorough diagnosis. These prices can vary depending on your mechanic and place. However, a detailed review of a car's condition will help you make a sound decision while purchasing a used car.


10 Tips For Buying A Used Car In Canada

The price of used cars has risen significantly this year due to geopolitical reasons and a global microchip shortage that has led to increased demand. According to market analysts, the price of buying a used car is likely to remain high for a while. With financial stakes so high and even new cars with a 40% increase in their usual prices, it is very important to do careful research. Apart from the checklist for buying a used car, here are some more tips for buying a used car in Canada.


Choosing The Vehicle

The first step is to choose a car that suits your needs. Weight the pros and cons of each vehicle and prioritize all the makes and models you choose, so it is easy to pick out your favorites. Consider important factors like fuel economy, cargo capacity, engine size, power, mileage, and interior specs because they determine how efficiently the car will perform according to your requirements. Buying a used car is not a one-size-fits-all situation. If you live in downtown Toronto and commute daily, then a small hybrid car with good fuel economy is a good option because it's easy to maneuver and park. If you love to go fishing and camping, you can look for an SUV. Each car is designed for a different purpose and should be selected accordingly.


Check Vehicle Reviews

Buying a reliable used car is very important. Once you have finalized a few vehicle makes and models you want to choose from, check the review of these cars on google and automotive forums like Edmunds, AutomotiveForums, etc. The reviews and ownership experiences posted by people can tell you some common recurring problems about that car. You can also check the replacement costs of the vehicle to see how much you will pay for the maintenance. For example, a ball joint is a common replacement part of the vehicle. A Dodge Ram ball joint replacement cost can be around $300 (including labor) whereas the same for a Hyundai Elantra is $150.


Beware Of Malpractices

Beware of the curbsiders, the unlicensed car salesmen, that are the major reason for car fraud in Canada. These individuals fake themselves as private sellers and are often involved in malpractices like rolling back the odometer and hiding mechanical problems associated with the vehicle. Dealing with such people can cost you thousands of dollars. Therefore, we advise you to buy a used car from a dealership that is licensed by the Motor Vehicle Industry Council (MVIC). If you are buying a used car from a private seller, do your research and ask for a CarProof or Carfax report. In provinces like Ontario, the dealer is bound by the laws dictated by the Ontario Motor Vehicle Industry Council (OMVIC) and it also offers the buyer protection via its compensation fund and the Motor Vehicle Act.


Private Vs Dealership

If you are confused and wondering what is the difference between buying a used car from a dealership or a private seller, these points will help you make a sound decision.



Private Seller
Dealership
Condition

It's your responsibility after purchasing the vehicle and the used vehicle is sold in its existing condition by a private seller.

Used vehicles at a dealership are cleaned, washed, and repaired before being sold.
Reliability
Private sellers can be very reliable if the vehicle is regularly maintained, and you have performed a thorough check. However, it's important to choose the right seller to avoid getting scammed by fake sellers.
Very reliable because dealerships cannot afford to be dishonest due to legal regulations. Some dealerships carry out the repair work before selling and if a problem occurs, you can ask them to help you with the vehicle.
Number Of Vehicles
A private seller usually has one or two cars to sell. Limited options to choose from.
A dealership has several cars in the lot, allowing you a make a diverse choice.
TimeYou save a lot of time with private sellers because they usually have one or two cars and you can make simple and quick decisions while buying a used car.
Dealerships have a lot of cars which give you the opportunity to choose from many but a thorough inspection of every car is not possible.
Vehicle History

A private seller usually doesn't have a vehicle history, making it a risky purchase.

Dealer provides vehicle history of used vehicles and often sells cars with manufacturer's warranties.

CostPurchasing a car from a private seller costs less compared to a dealership. You can check the price difference by visiting online portals like Ontariocars or Autotrader.

Usually, dealership prices are higher compared to private sellers and they leave less room for negotiation.


Budget And Taxes

Decide the budget you can spend on buying the car. The final amount should include the cost of purchasing a new car and other costs like taxes, licensing fees, license plates, etc. To determine your tax rate you can refer to the Red Book value of the vehicle provided by the Ministry of Finance. The Used Vehicle Information Package (UVIP) offered by the seller also includes the Red Book value of your vehicle. You owe a 13% GST/HST (Harmonised Sales Tax) on the purchase of the vehicle, irrespective of a private seller or a dealership. Also, include the repairs and replacements that you might have to perform on the vehicle. This makes the inspection procedure very important to prevent any future repairs that can increase the cost of owning a car.


Vehicle History Report

If you are buying a used car from your friend, family member, or a relative, they can vouch for the car's history. If you are purchasing a used car from a dealership, always check the vehicle's history report. AutoCheck and Carfax are the best-known sources to check the vehicle's history in Canada. These reports have vital information. It tells you if the odometer on the vehicle has been rolled back and if it has a salvage title due to an accident or total loss by an insurance company. To get these details, all you need is the vehicle's identification number (VIN) or the license plate number. Most dealers provide the vehicle history report if they have it in their inventory.


Documents

After buying a used car, you will receive a few documents which are legally required. If you are purchasing a used car in provinces like Ontario, the dealer will provide the following documents that help you avoid problems in the future.


  • UVIP: The Used Vehicle Information Package (UVIP) document includes the outline of the wholesale value of the car, its history, vehicle identification number, and bill of sale. The law by the ministry of transportation mandates each private seller to include this document and if you are buying a used car from a dealer, you can order this document from ServiceOntario.

  • Safety Standards Certificate (SSC): This document is not required legally, but it certifies the fitness of the vehicle. If you want to register your car with ServiceOantario, you must have this document.


Registration

After you have purchased the vehicle from the seller, the task isn't completed. The final step is to register the vehicle to finalize your legal ownership. This includes registering your vehicle with the government and getting it issued. Usually, the dealership provides most of the forms necessary for registration and some dealers will even take care of the registration themselves. If you purchased the vehicle privately, you can register your vehicle with ServiceOntario within six days of purchase. You will need the following documents:

  • Canadian Provincial Driver's License

  • Vehicle's UVIP

  • Bill Of Sale (Verification Of Purchase)

  • Vehicle Permit

  • Safety Standards Certificate (SSC)


Insurance

To register your vehicle, you require proof of insurance which can add extra to the total cost of buying a used car. The company and cost of insurance can vary, but the firm has to be licensed by the province. The cost of car insurance in Canada depends on several factors like driver's license level, clean driving record, place, etc. If you are a new immigrant looking to buy a used car in Canada, the insurance might cost you a little extra. Your insurance policy must contain a third-party liability of $200 in case the driver causes injury or death. However, what's included in your policy and its total cost can be negotiated with the company.


Get License Plates and Stickers

To drive your vehicle out of the dealership and on the roads, your vehicle should have valid license plates and stickers. You need new license plates because the person selling the car keeps the license plate as they are valid to the owner and not to the vehicle. The validation stickers have to be renewed every one or two years and are placed on the top right corner of your license plates. If you want a customized license plate with your own choice of an assortment of letters, you can pay extra to the province authority.


The last step is to drive your car out of the dealership with peace of mind and contentment. We recommend you take your time inspecting and analyzing each aspect of buying a used car with caution. Taking a few days extra to do your research and choose the right vehicle will let you save a lot of money on repairs and maintenance in the long run. This used car buying guide not only helps you with its inspection but also helps you get acquainted with the entire process of buying a used car.


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John Framigllia
Technical Writer
Our technical writer is known for simplifying automotive parts and services. Intuitive with various vehicles and manufacturers, he knows how to simplify complicated problems.