Online car-buying platforms are gaining popularity, with Carvana leading the way in the US. While there isn’t a Carvana Canada yet, here’s a closer look at some Canadian equivalents. Canadians can browse through a wide inventory of vehicles, make their purchase online and have their car delivered right to their front door with these easy-to-use online car-buying platforms.
1. Clutch
Available in Ontario and Nova Scotia only
Clutch provides a wide inventory of more than 700 used cars that shoppers can browse through online, so you won’t have to visit a dealership. It also provides delivery straight to your driveway so you can take your new wheels for a spin during a “test to own” trial period of 10 days/750 km.
- Who it’s best for: Car buyers who want a seamless online car-buying experience with the option to apply for financing through the platform. You can also sell or trade in your car.
- Where it’s available: Ontario and Nova Scotia only, including cities like Toronto, Hamilton and Halifax.
Pros
- Easy-to-use site
- Upfront about pricing; no negotiations
- Free CARFAX report with a thorough inspection
- Transparent about kilometres, damage and vehicle issues
- Offers financing for good and fair credit borrowers
- Accepts cars with a loan on it if you’re selling
Cons
- Higher price points with newer used cars
- No test drive option before buying
- Prep fees if you’re in Halifax
- Higher warranty coverage price points
2. Dealerhop
Based in North Vancouver, BC, Dealerhop is an online platform where you can buy, trade in or sell a car online. To buy a car, simply fill out its application and then Dealerhop will match you with car and financing solutions. You can get a new or used car through this platform.
This Carvana alternative has a large presence across Canada. You’ll be able to shop online for a car using Dealerhop in cities like Vancouver, Calgary, Edmonton, Winnipeg and Toronto.
- Who it’s best for: People who want to shop online for a new or used car.
- Where it’s available: British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland only.
Pros
- New and used cars available
- Bad credit is okay
- Delivery to your door
- Partnered with financial institutions for financing
Cons
- High rates for bad credit
- You’re limited to the dealerships Dealerhop is partnered with
3. CarDoor
Like Carvana in the US and its competitors in Canada, CarDoor brings the car-shopping experience completely online. Look through CarDoor‘s inventory of hundreds of used cars, do a 360-degree walk around and read through the vehicle’s key features completely online. Once you’ve decided on a car you like, click on “Home Test Drive” to set up a delivery date and to finalize your purchase, including whether you need financing.
After your car is delivered, you have a full money back guarantee for 14 days/750 km. If you change your mind during this time frame, CarDoor will pick up the vehicle and issue a refund.
- Who it’s best for: Car buyers prioritizing longer-term warranties, longer return and exchange periods, and solid customer service. You can also sell or trade in your car.
- Where it’s available: Ontario only. Keep in mind that CarDoor’s primary service area is within 300 km radius of Toronto, so if you live further than that in Ontario, contact CarDoor first to see if they are able to deliver a vehicle to your home.
Pros
- Easy-to-use platform
- 14 days/750 km money back guarantee
- 60 days/5,000 km exchange program
- Free 90 days/10,000 km
- Upfront about pricing
- Accepts cars with a loan on it if you’re selling
Cons
- Newer used vehicles on offer with higher price tags
- No test drive option before buying
- Smaller inventory of options to choose from
- Only available in Ontario
Are Canadians using sites like Carvana to buy a car?
Businesses like Carvana in the US and Clutch in Canada are bringing the car-buying process into the twenty-first century, allowing customers to do everything online from comparison shopping and choosing a warranty to applying for financing and trading in a vehicle. And it seems like Canadians are slowly warming up to the idea.
According to a 2022 survey from CARFAX Canada, 1 in 10 Canadians say they want to buy their next car completely online and have it delivered. But, interestingly, 1 in 3 Canadians say they can see themselves buying a car entirely online at some point in the future, even if it’s not now.
Similarly, a 2024 CARFAX Canada survey showed that 80% of used car buyers view online listings to search for vehicles they’re interested in, which is a big increase compared to the 60% that were doing so in 2018.
That’s not surprising considering that a Clutch survey conducted by Ipsos in 2022 showed that 84% of Canadians want the car-buying process to be easier than it currently is, and 76% want to spend less time visiting dealerships to shop for a car.
In our increasingly digital age, and with a lot of dissatisfaction around the current car-buying process, it’s not surprising there are so many online car-buying platforms like Carvana being developed in Canada.
How does the buying process work with an online dealer?
As you can tell, there are only slight disparities between these online car-buying platforms. They all allow shoppers to browse vehicles online, play around with payment calculators to help you find the sweet spot for your budget, and make your purchase (including securing financing) completely online. And the best part: they all deliver your purchase right to your front door.
You can count on these steps when you’re working with any of the Carvana equivalents above:
Search online inventory for your dream car
Start the process by browsing through cars on each competitor’s platform. You can sort vehicles by year, make, model, colour, kilometres and more. You can “favourite” your top picks or place them in a virtual garage, then zero in on the detailed specs for your top choices.
Select the vehicle you want to purchase
When you’re ready, proceed with your purchase. At this stage, you can even get a quote on your trade-in if you have a vehicle you’d like to sell. You can also apply a down payment or apply for financing.
Arrange delivery or pick up
Once your payment is sorted out, work with your dealer to select a date and time for your pick-up or delivery to your front door. You’ll need to provide a picture of your driver’s licence and insurance.
Test drive your vehicle
With your new purchase in your driveway, take your new wheels for a spin for the allocated time provided by the dealer you’re working with. In some cases, that’s 7 days while others allow up to 14 days. If you aren’t happy, make sure you contact your dealer within the designated time frames to set up a pick-up and a refund or exchange.
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