When buying a used vehicle in Alberta, there are no concerns around having to pay provincial sales tax, which is unique among the provinces within Canada. However, the onus remains on consumers to check into certain information and protect themselves before taking on ownership of a used vehicle. Here’s a step-by-step walkthrough that explains how to purchase a used car in Alberta.
Buying a Used Car in Alberta
Step 1: Research
Before you even sit down to start looking for your new car (well, new to you, at least), there’s a step that needs to be completed, which is to ensure you have a solid understanding of exactly what it is it you’re looking for. Do you need an SUV with two rows, with three rows, or do you need a pick-up truck? How much cargo space do you expect to need regularly? Are features such as all-wheel drive or heated seats important to you? What about the latest technology in the form of an infotainment system? Have you considered how much car insurance might cost? Thinking through these factors now will assist with narrowing down the list of vehicles worth your consideration, which will save a lot of time and effort in your search. To find out more about how to decide on the best used vehicle for you, check out our guide to Buying a Used Car in Canada.
Step 2: Shop
Once you’re sure you know what you’re looking for, it’s time to begin looking for vehicle listings that interest you.
The safest route is to buy from a dealer registered with the Alberta Motor Vehicle Industry Council (AMVIC), either directly or through online vehicle sales listing sites such as CarGurus. AMVIC is mandated to oversee the activities of registered dealers under the Consumer Protection Act to ensure the industry conducts itself in a manner that’s fair both for consumers and businesses. Car dealerships or any automotive businesses selling vehicles are required to inform you of the history and condition of a vehicle through readily available sources such as vehicle inspections, mechanical fitness assessments, and reports from private reporting companies. However, regardless of how you purchase your vehicle in Alberta, all used vehicles are considered to be sold in as-is condition, which means that the onus is on the buyer to ensure that any potential issues have been identified in advance of committing to the purchase.
Be alert for curbers while searching through listings. A curber is someone who misrepresents themselves or the vehicles they’re offering for their own gain. They scam their customers through practices like odometer tampering, reselling stolen vehicles, or selling vehicles that can’t legally be registered due to accident or flood damage. Trust your instincts, and be prepared to walk away if a deal seems too good to be true.
Step 3: Investigate
If you’re reasonably sure you’ve found the car you’re looking for, follow these steps to ensure you’ve thoroughly investigated it before committing to a purchase.
As a first step, contact the Alberta Motor Association or a Service Alberta registry agent to request a vehicle information report, which will provide a list of previous registered owners of a vehicle and any liens placed on the vehicle in Alberta.
The Canadian Police Information Centre has an online form where the vehicle identification number (VIN number) can be searched to see if the vehicle has previously been reported as stolen. In Alberta, this information will not be offered to you, so it’s very important to search for it directly.
On top of that, it’s a very good idea to request a vehicle history report from a private company to receive information on its history elsewhere in Canada, particularly with regard to any liens that may be owed that were registered in other provinces. Debts on a vehicle become the new owner’s responsibility once ownership is transferred, and they can create an unpleasant surprise if an unprepared buyer is saddled with that financial liability. Carfax’s products are examples of the reports that contain this information.
Don’t hesitate to ask the seller whether any more information is available on the car’s ownership history, service records, the status of its warranty including any extended warranties that may have been purchased, and whether any required recall work has been completed.
To learn more on how to know whether the vehicle is being listed at a fair price, how to check its estimated fuel consumption and safety ratings, what to look for during a test drive, and other steps to take before committing to a purchase, check the article on Buying a Used Car in Canada.
Step 4: Purchase
If everything up to this point checks out, you may decide to go ahead with the process of purchasing the vehicle.
Regular safety inspections are not mandated by the government of Alberta, unless under certain circumstances, such as if you’re bringing in and out-of-province vehicle or the car or pickup truck has previously been listed as salvage. As a result of this, it’s a good idea to have one performed at a registered vehicle inspection facility – such as those offered by the AMA. This will inform you as a buyer of potential issues with the vehicle that might not otherwise come to light until after the sale is complete. If you purchase from a dealer, a mechanical fitness assessment will be completed for you, which checks for basic safety and functionality. When you’re buying from a private seller, it’s a very good idea to secure a pre-purchase inspection on your own to ensure you don’t find yourself taking on expensive repairs you didn’t anticipate.
To register the vehicle, a buyer and seller will need to prepare a standard bill of sale. When buying from a dealer, this will be provided for you; when undertaking a private sale, the parties must prepare it together. At a minimum, a valid standard bill of sale must list: the full name and address of both parties; the VIN; the make, model, style, colour, and model year of the vehicle; the amount paid; and both parties’ signatures. Further information is recommended but optional such as: the odometer reading; phone numbers and a copy of personal identification for all parties; signatures of witnesses; a list of any known liens against the vehicle; whether the vehicle was paid for in full up front; the method of payment and terms, if applicable; where the vehicle was last registered; and any special conditions of the sale. You can download a sample form for more information.
It will also be necessary to acquire proof of insurance before vehicle registration with the province, which can be arranged with your insurer directly. With the bill of sale (effectively proof of ownership) and proof of insurance from your insurance company in hand, you’ll be ready to register your vehicle. If you need a few days, your existing licence plate and registration remains valid on your new vehicle for up to two weeks from purchase.