Checklist for Buying a Used Car from Dealer in Canada
Checklist for Buying a Used Car from Dealer in Canada
Posted on June 25, 2025
Thinking of buying a car from a used car dealer? Use this detailed used car checklist to ensure you make a smart and secure purchase. From documents to inspections and test drives, this guide walks you through every step before signing on the dotted line.
1. Before You Visit the Dealer
Before stepping into a dealership, start with proper research and planning.
- Set a realistic budget – Factor in taxes, insurance, registration, and future maintenance.
- Define your needs – SUV or sedan? Fuel efficiency or towing power?
- Check market prices – Use tools like Canadian Black Book or AutoTrader to understand fair pricing.
- Browse dealership reviews – Look for reputable dealers in your area.
- Research recalls – Use Transport Canada's recall database to avoid problematic models.
2. Vehicle History & Documentation
One of the most important steps in your checklist for buying a used car from a dealer is verifying its background.
- Get a CARFAX Canada report – Check for accident history, mileage inconsistencies, and registration issues.
- Confirm the VIN – Make sure the Vehicle Identification Number matches the report and vehicle.
- Ask for maintenance records – Look for consistent service history.
- Check for liens – Ensure no financial obligations are tied to the car.
- Review past ownership – Fewer owners and private use are generally a positive sign.
3. Exterior Inspection
A visual inspection can reveal past damage or poor maintenance. Use this used car checklist when walking around the vehicle:
- Check for dents, scratches, rust, or repainted areas
- Look at panel alignment – Misaligned panels may suggest collision damage.
- Inspect tires – Tread depth, even wear, and matched brands are all good signs.
- Examine the undercarriage – Check for rust or damage, especially in snowy regions.
- Test all exterior lights – Headlights, taillights, brake lights, and indicators must work.
- Inspect windshield and windows – Look for chips, cracks, or repairs.
4. Interior Inspection
Use this section of the checklist for purchasing a used car to ensure the interior is in good condition:
- Inspect seats and upholstery – Watch for stains, tears, and odours.
- Check the dashboard – No warning lights should be on.
- Test air conditioning and heating – Vital in Canada’s extreme seasons.
- Try all electrical features – Windows, locks, sunroof, infotainment.
- Look for signs of water damage or mildew.
- Confirm the owner’s manual, spare tire, and jack are included.
5. Under the Hood
If you’re not mechanically inclined, bring a knowledgeable friend or book a third-party inspection.
- Check fluid levels – Oil, coolant, transmission, brake fluid.
- Look for leaks, corrosion, or cracked belts and hoses
- Inspect the battery – No corrosion, loose cables, or swelling.
6. Take a Proper Test Drive
- Don’t just circle the block — really drive the car. This part of the buying a used car checklist is essential.
- Drive at various speeds – City and highway.
- Test acceleration and braking – Listen for noises or vibrations.
- Check steering and suspension – The car should track straight and feel stable.
- Listen closely – No grinding, clunking, or whining sounds should occur.
- Test parking, reversing, and turning radius
7. Consider a Pre-Purchase Inspection
Even if the dealer offers a certified vehicle, getting an independent mechanic’s opinion adds peace of mind.
- Book a pre-purchase inspection
- Ask for a written report
- Use the results to support negotiations or walk away if major issues are found
8. Finalize the Deal and Review Paperwork
The last step in your checklist for buying a used car from a dealer is making sure the legal and financial aspects are solid.
- Review the bill of sale – It should clearly state the agreed price and vehicle details.
- Check the warranty or certified pre-owned terms
- Get a Safety Standards Certificate (required in most provinces for registration)
- Verify registration and ownership transfer
- Arrange insurance coverage before driving off
- Keep copies of all paperwork
Final Thoughts
Buying a used car from a dealer can be a smart and cost-effective choice — but only if you do your due diligence. This checklist for purchasing a used car helps you make an informed decision, avoid unexpected issues, and feel confident every step of the way.
While dealerships often provide added benefits like certified vehicles and financing options, it’s still important to carefully inspect the car, review its history, and verify all documentation. By following this used car checklist, you’ll protect your investment and drive away with peace of mind.