Buying a used car in BC

If you’re thinking of buying a used car in BC but you’re not sure where to start, read our guide on buying a used car in this province to make the process as seamless as possible.

What you need to buy a used car in BC

The process of buying a used car varies by province. Here are the steps you’ll need to take in BC:

Required documents when buying a used car in BC privately

• Signed original Vehicle Registration (APV250 form) from the seller. This is the owner’s certificate and includes insurance information.
• Transfer/tax form (APV9T), which can be downloaded from the Insurance Corporation of British Columbia (ICBC) site. This form requires original signatures from you and the seller. Electronic signatures will not be accepted.

To complete the process, take these documents with the seller to an Autoplan broker. The transfer/tax form is only valid within 10 days of the sale. An Autoplan broker is a licensed ICBC professional who provides services like vehicle registration and insurance.

Other documents and information you should get

• Lien search (around $10) from a Service BC centre to check whether there are outstanding debts linked to the vehicle.
• Inspection report from a trusted mechanic to make sure the car doesn’t have problems.
• CARFAX report. This is a comprehensive report of a vehicle’s history, including liens, maintenance history, vehicle ownership, accidents and more. If you’re buying a used car from a dealer, make sure they give this report to you. If you’re buying a used car from a private sale, you can get the report from the CARFAX website if the seller doesn’t provide it to you.
• Check if the car has been reported as stolen by visiting the Canadian Police Information Centre website.
• Check if the car has any safety recalls by visiting the Motor Vehicle Safety Recalls Database.

BC used car tax if you buy from a private seller

If you buy a used car from a private seller in BC, 12% PST applies if you paid less than $125,000 for the car. If the purchase price was above $125,000 and below $150,000, 15% PST applies, and if the price was $150,000 and over, it’s 20% PST.

You must pay BC used car tax when one of these occurs (whichever is earliest):

• You register your used car with the ICBC
• On your next PST return if you have a PST number
• On or before the last day of the month after the month you bought your car (using a Casual Remittance Return FIN405 form)

You do not pay GST for a private sale.

BC used car tax if you buy from a dealer

If you buy a used car from a dealer in BC, below is the PST breakdown. This is in addition to 5% GST.

• Less than $55,000: 7%
• $55,000 to $55,999.99: 8%
• $56,000 to $56,999.99: 9%
• $57,000 to $124,999.99: 10%
• $125,000 to $149,999.99: 15%
• $150,000 and over: 20%

PST applies on the price before a trade-in deduction or down payment.

Registering your used car in BC

When you visit the Autoplan broker, bring the original vehicle registration from the seller and the completed transfer/tax form. If you already paid the PST, bring proof of payment. Otherwise, have the money ready to pay for PST.

Compare used car loans in BC

1 - 3 of 3

Product CAFCL	Ratings	APR Range	Loan Amount	Loan Term	Requirements	Broker Compliance
CarsFast Car Loans	Customer Survey: ★★★★★	3.90% - 29.90%	$500 - $75,000	12 - 96 months	Requirements: Min. income of $2,000 /month, 3+ months employed	CarsFast will connect you with a dealership near you to help you find the right financing.	Go to siteMore Info Compare	loading Fetching your data...
Loans Canada Car Loans	Customer Survey: ★★★★★	0% - 46.96%	$500 - $50,000	3 - 60 months	Requirements: Min. income of $1,800 /month, 3+ months employed	Loans Canada is a loan search platform. Get matched with a suitable dealer based on your credit history and borrowing requirements.	Go to siteMore Info Compare	loading Fetching your data...
Dealerhop Car Loans	Not yet rated	6.99% - 29.99%	$7,000 - $50,000	12 - 96 months	Requirements: Min. income of $1,800 /month, 3+ months employed	Dealerhop matches you with a dealer partner to get you financing.	Go to siteMore Info Compare	loading Fetching your data...

loading

Steps to follow when buying a used car in BC

1. Decide on a budget

Look at your income and current debts to figure out how much you can realistically afford to spend. You’ll also want to factor in additional car expenses such as provincial tax, loan interest, car insurance, registration, maintenance and gas costs. Many experts advise spending less than 10 to 15% of your total income on buying a used car in BC.

Extra costs of buying a used car in BC

Add all of these expenses together to get a rough idea of the total cost of owning a car. Note that you might pay different amounts based on your car type and driving record.

2. Decide where to buy your car

You can buy a used vehicle from a private seller, dealership or online broker. The seller you choose will come with its own list of benefits and drawbacks.

• Dealer. Dealers are often more expensive but can make up for it by being more convenient and safer (as long as you work with a reputable dealer).
• Private seller. You could save money with a private seller if you’re decent at haggling, but you run a higher risk of buying a car with mechanical issues.
• Broker. You can use a broker to compare cars from multiple dealerships and sellers across BC, but you may encounter fraudulent lenders if you don’t do your homework.

• Where can I buy a used car in BC?

  Seller	Where to find	Pros	Cons
  Private seller	Sites like Used.ca, Craigslist, Kijiji or Facebook Marketplace	Local deals Bargain prices	Not eligible for financing Lots of work No satisfaction guarantees or returns
  In-person dealership	Find a dealership near your location in BC	Easy to check reviews Some dealership financing available Shop and test drive multiple vehicles	Can be more expensive Limited inventory
  Online car broker	Sites like Auto Trader, Canadian Black Book and Carpages.ca	Access cars from across BC and out of province Some financing available	Potential for fraud or unlicensed seller Could be hidden fees
  Online dealer	Sites like Canada Drives, Clutch and CarDoor	Shop online with easy delivery “Test to own” to get a feel for the car Can be less expensive than in-person dealership options	Limited inventory Set prices with little room to negotiate

3. Decide how to pay for your used car

You’ll need to decide how you want to pay for your vehicle and if you need to secure financing. You can buy a used car in BC with the following payment or financing options:

• Use your own money. You can use your savings to buy a used car or ask friends and family for a loan to avoid paying interest.
• Apply for a car loan. Ask to borrow funds from a bank or private lender if you need cash when buying a used car in BC (you can consider a cosigner if you have bad credit).
• Apply for dealership financing. Get a loan directly from your dealership if you want to cut out the third-party lender, but expect to pay higher rates.

4. Compare cars and negotiate prices with sellers

Explore many different makes and models to find the car you want. Do your best to negotiate a better price on your car since most dealerships and private sellers will mark prices up to start out. You may also want to do some preliminary research with a broker to find out what the going price is for the type of car you’re interested in before you shop.

• Tips to negotiate used car prices

  • Compare prices in advance. Find out the market price of the car you want in advance and ask your seller to match or beat that rate if they want to make the sale.
  • Get pre-approved for financing. Get pre-approved so you know how much you have to spend before you start shopping.
  • Stick to your budget. Set a budget and know when to walk away if the price tag is too high for you.

5. Test drive and inspect your used car

Make sure your car looks, sounds and even smells like it’s in good working order before you drive away. Do a visual inspection, take the car for a test drive and consider enlisting the help of a licensed mechanic before buying a used car in BC.

You should also check the vehicle identification number (VIN) and make sure there are no outstanding liens on the vehicle. You’ll have to get any lien removed before registering the car, which could be difficult if you aren’t able to get in touch with the seller.

Mandatory used car inspections in BC

You’ll need a mandatory inspection when buying a used car in BC in the following situations:

• You want to register a rebuilt vehicle
• You plan to bring a car from outside of BC or Canada (though there are some exceptions for qualified private vehicles from Alberta, Saskatchewan and Manitoba)

6. Pay for your car

You can use your savings or a car loan to buy a used car in BC. You’ll own the car outright and you won’t be required to pay interest or loan payments if you use your savings. You can also apply for financing from the bank or a private lender if you don’t mind paying back a loan. The downside is that you may not qualify for a car loan unless you have good credit.

Used car tax in BC

You’ll need to pay 12% tax to buy a used car in BC for private and dealership sales. However, the tax amounts are split up differently:

• Private sales. You’ll pay 12% PST and no GST for a total tax of 12% (or 15% and more for vehicles over $125,000).
• Dealerships. Between 12-25% PST/GST depending on the price of the car. If the purchase price was less than $55,000, the tax is 12%.

7. Register your used car

Registration costs around $30, and you can sign up with any Autoplan broker in BC. You’ll need the following information to register your used car:

• Government issued ID. Show your licence or other form of acceptable ID.
• Vehicle registration. Provide the original vehicle registration with the previous owner’s signature on it (the seller should give you this).
• Transfer form. Fill out and sign the transfer/tax form along with your seller.

You’ll need to provide original signatures on all paperwork and it’s highly recommended that you go into the registration office with your seller to make sure there are no issues with the sale.

8. Organize insurance

You could pay an average of $1,775 for car insurance in BC through ICBC. You’ll need the following documents to get insurance in BC:

• Government issued ID. Show your licence or other government issued ID.
• Proof of registration/ownership. You’ll need to show that the car belongs to you with registration documents.
• Driving record. Give consent for your insurer to pull your driving record.

How to choose a used car that fits your needs

Find a vehicle that makes sense for your lifestyle and budget. Consider the following features when buying a used car in BC:

• Does it fit my lifestyle? Make sure you choose a car that will be a good fit for your personal style, work/passenger needs and extracurricular activities.
• Can I afford it? Shop around to get the lowest prices and make sure you can pre-qualify for financing before you start shopping if you need a bit of extra cash.
• Will it last for a long time? Look for the lowest mileage possible and make sure you get an inspection to check that the car’s in good condition.
• Do I really need a car? Think about how much you need a car and figure out if other forms of transport might be more suitable or cost-effective.

Buying a used car in BC if you live out-of-province

You’ll need to follow a couple of extra steps if you want to import a car from BC into another province.

• Book an out-of-province inspection. You’ll usually need to get a special inspection on any vehicle you bring into your province from BC.
• Provide paperwork. Show proof of ID and ownership for the car through a bill of sale or signed registration documents.
• Pay taxes. You’ll need to cover the taxes required by your province to import a vehicle from BC (usually between 5 and 15%, depending on the province).

Frequently asked questions

• Is it better to buy a used car or a new car in BC?

  It really depends on what you prioritize. You might want to splurge for a new car if you want an extremely reliable vehicle that's got all the newest features. You'll want to buy a used car in BC if you're willing to take a small risk to save money.

• What documents do I need when buying a used car in BC?

  You'll need your ID and the original vehicle registration from the previous owner with their signature on it, which effectively signs the car over to you. Additionally, you both must fill out and sign a transfer/tax form to finalize the transfer. You should go the the registry office with the private seller to ensure the process goes smoothly.

• What is the best time of year for buying a used car in BC?

  It depends on what kinds of deals are being offered in your local area. You may be able to find good deals on used cars in BC at the end of the year, on Black Friday and around May long weekend.

• How much is used car tax in BC?

  If you're buying a used car from a private sale, you'll pay between 12-20% PST (no GST), depending on the purchase price of the car. Cars under $125,000 are 12%. If you're buying a used car from a dealership, you'll pay PST/GST between 12-25% depending on the purchase price. Cars under $55,000 are 12% PST/GST.

• I want to know how to avoid paying taxes on a used car in BC. Are there any options?

  In most cases, you'll be required to pay PST when buying a used car in BC. However, there are some circumstances where you may be eligible for a PST exemption, such as if you buy a used zero-emission vehicle (BEVs, FCEVs and PHEVs only) or if you purchase a vehicle for use outside BC (conditions apply).

To make sure you get accurate and helpful information, this guide has been edited by Stacie Hurst as part of our fact-checking process.