When buying a used car in Quebec, it’s important to note that the onus is on the buyer to do much of the research and due diligence, in some cases to a greater degree than in other Canadian provinces. Here’s what you need to know and a list of steps to follow when buying a used car in Quebec.
Buying a Used Car in Quebec
Step 1: Research
Browsing through vehicle listings is a great place to start, but first it’s helpful to ensure you understand exactly what you’re looking for in your next vehicle. Consider attributes like the number of seats you want, how much cargo space, and whether any additional features such as all-wheel drive or heated seats are important to you. Taking the time to think this through in advance will help you create a short list of vehicles that are most likely to meet your needs, which will make the search process easier. You can find more detail steps in our guide to Buying a Used Car in Canada.
Step 2: Shop
Once you’re ready to start looking into vehicle listings that interest you, it’s time to head online.
In Quebec, the decision between whether to buy from a registered dealer or a private seller is complicated. On one hand, buyers who purchase from individuals are not charged the GST federal sales tax upon registration, which means that it can offer a cost savings. On the other hand, registered dealers are required to disclose any problems with the vehicle and the cost of having them repaired, to offer you a warranty, and to advertise the price with all fees included except for taxes and levies. These protections result in greater transparency and accountability from the seller.
While searching for vehicles online, be on the lookout for curbsiders, which is a term for sellers who misrepresent themselves or the vehicles they’re offering for their own gain. They may try to sell you a vehicle with an adjusted odometer, that has been stolen, or that can’t legally be registered because of accident or flood damage. If a deal seems too good to be true, it probably is. If at any point in the process of purchasing a used vehicle your instincts tell you to walk away, don’t hesitate to do so. There are plenty more vehicles on the market.
Step 3: Investigate
Once you find a car that seems like a good prospect, follow these steps to investigate it thoroughly before you commit to a purchase.
A good first step is to ask the seller for the vehicle identification number (VIN) and perform a database search with the government’s Registre des droits personnels et réels mobiliers. For a $4.00 fee, the database will confirm the name of the registered owner and list any debts that are currently outstanding on the vehicle. Debts transfer along with vehicle ownership and this search isn’t performed for you at any point in the purchase process, so it’s very important to confirm for yourself that no debts are outstanding on the vehicle before proceeding to the next step. Other vehicle history reports are available that can provide further detail on previous ownership, any accidents the vehicle may have been involved in, odometer records, and much more. These provide an added level of information and protection to consumers.
It’s also a wise practice to ask the seller about the car’s ownership history, whether any service records have been retained, the status of the warranty including any extended warranties that may have been purchased, and whether any required recall work has been performed.
More information on how to check that the list price is fair, how to look into estimated fuel consumption and safety ratings, what to watch out for during a test drive, and other steps to take before committing to buying a vehicle can be found at the article on buying a used vehicle in Canada linked above.
Step 4: Purchase
Once you decide to proceed with the purchase, the process differs slightly depending on whether you’re buying from a dealership or an individual.
In either case, a mechanical inspection and certification is required to register a vehicle in Quebec if the vehicle has been previously prohibited from being put into operation, has been imported into the province from elsewhere in Canada, or has been in storage for one year or longer. A safety inspection is not required in other instances to transfer ownership, but it is highly recommended to have one performed by a trusted mechanic to avoid any unpleasant surprises after purchase.
Before proceeding to transfer the registration, check with the Société de l'assurance automobile du Québec (SAAQ) to confirm that the vehicle has no restrictions on it such as salvage status that would prevent it from being registered. A $1.80 fee will be charged for this service.
The transfer cannot be completed if either the buyer or the seller has an outstanding unpaid fine or offence under the Highway Safety Code or a municipal traffic or parking bylaw. This can’t be resolved at the SAAQ; the Bureau des infractions et amendes or municipal courts are responsible for collecting fines, and this must be done in advance of attempting to transfer the registration.
The registration fee varies significantly based on factors such as whether the vehicle is considered luxury, the size of the engine, and whether the new owner lives in an area with public transit access. The full fee schedule is available on the SAAQ website.
QST is calculated based on either the agreed selling price or, if the vehicle is less than 10 years old, the greater of that or the estimated wholesale value of the vehicle according to the Guide d'évaluation Hebdo, automobiles et camions légers. Certain vehicle types require additional documentation to confirm the correct amount of QST to be charged, such as those that are more than 25 years old, from some exotic or ultra-luxury brands, or that are being imported from outside Canada. Taxes are exempted in most cases when a vehicle is being transferred as a gift to a family member.
In addition to the standard provincial insurance coverage required of all citizens with a driver’s licence, vehicle buyers are required to hold a civil liability insurance policy contracted from a private insurer providing minimum coverage of $50,000.
If you’re buying from a dealership:
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The buyer will need to pay both the QST provincial sales tax and the GST federal sales tax.
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Registration is typically initiated on the dealership’s premises at the time of purchase upon presentation of a valid Quebec driver’s licence. In some instances, the dealer will not be authorized to complete online registration and instead will provide a temporary registration certificate to the seller, who will then take that to a SAAQ service outlets to register the vehicle. In either case, you’ll need to complete the registration by visiting a SAAQ outlet.
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In addition to supplying a Quebec driver’s licence to the SAAQ, you’ll need the dealer-supplied form Attestation de transaction avec un commerçant, as well as the registration certificate signed by the former owner and the dealer.
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If you did not pay the sales taxes upon registration at the dealership, you’ll be expected to do so at the SAAQ outlet. Credit cards are not accepted for payment.
If you’re buying from a private seller:
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You and the seller will need to go together to a SAAQ service outlet to transfer the registration.
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Both parties will need to supply a driver’s licence or other form of official identification, and the buyer will be expected to supply the current odometer reading.
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The buyer will need to pay QST to the SAAQ at the time of registration. Credit cards are not accepted. Only QST is charged when the transfer of ownership is between two individuals; the federal GST is not applied.