Buying a car in Calgary is a choice between savings and safety. Let's take a look at the pros and cons of both options, considering prices, warranties, taxes, and legal aspects.
1. Price comparison
Private sellers
- 10–20% savings: For example, a 2014 Scion tc can be found for $11,000 CAD, while similar models are more expensive at dealerships.
- Negotiation: Prices are often inflated, so you can negotiate a discount.
Dealerships
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- Higher cost: Includes car preparation costs (washing, inspection) and warranties.
- Promotions: Trade-ins, installment plans, insurance discounts.
2. Reliability and condition check
Private sellers
- Risks: Concealment of accidents, engine problems, debt.
- Mandatory steps:
- Carfax report ($40–50 CAD): Check for accidents and number of owners.
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Mechanic inspection ($100–200 CAD): Diagnosis of the chassis and transmission.
- Debt check: Through PPSA REGISTRY (risk of car confiscation for debt).
Dealerships
- Certified Pre-Owned (CPO):
- 141–201 inspection points.
- 12–24 month warranty.
- Transparency: Alberta law requires dealers to disclose:
- Accident history.
- Use of the car as a taxi/rental.
- Fire or flood damage.
3. Paperwork and taxes
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Private sellers
- Independent registration:
- VIN check at the registration center.
- Pay GST (5%).
- Register the car through a Registry Agent.
- Taxes: Only GST. For example, for a car worth $10,000 CAD, the tax is $500.
Dealerships
- Full support: The dealer handles the contract, registration, and license plates.
- Taxes: 5% GST. Additional fees (administrative, delivery) are included in the price.
4. Warranties and insurance
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Private sellers
- “As is”: No claims can be made after signing the contract.
- Insurance: Possible problems with insurance companies for cars over 12 years old.
Dealerships
- Warranties: Include engine, transmission, and electronics repairs (e.g., 3 months/5,000 km at Stampede Auto).
- Insurance benefits: Discounts through dealer partners (e.g., Hyatt INFINITI).
5. Transaction security
Private sellers
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- Risk of fraud: Fake documents, stolen cars.
- Face-to-face meeting: Check the seller's ID and car documents.
Dealerships
- AMVIC protection: Licensed dealers are liable for fraud.
- Refunds: If hidden defects are found, you can file a complaint.
Conclusion: Who to choose?
- Private seller:
- For whom: Experienced drivers who are willing to take a risk to save money.
- Advantages: Price is 10–20% lower, possibility to negotiate.
- Disadvantages: No guarantees, time needed for inspection, risk of fraud.
- Dealer:
- Who it's for: Newbies, people who value time and safety.
- Pros: Warranty, legal clarity, support.
- Cons: Higher price.
Recommendation: For your first car in Canada, choose certified cars from dealers (e.g., Stampede Auto, Sunridge Auto). If you have a limited budget, buy from private sellers, but be sure to have the car checked by a mechanic and Carfax.