Total Cost of Buying my FIRST CAR in Canada | Canada Vlog | International Students | Canada
Summary
TLDRIn this informative video, the host, Evans, shares his experience of purchasing a car in Canada, detailing the costs involved, including the car's price, taxes, registration, and insurance. He emphasizes the importance of winter tires for safety and compliance with insurance requirements, and discusses unexpected expenses such as tire installation and a battery booster. With practical tips on securing good insurance rates and managing fuel costs, the video serves as a comprehensive guide for potential car buyers in Canada.
Takeaways
- 🚗 The cost of purchasing a car in Canada can vary greatly depending on whether it's new or used and whether it's financed or paid upfront.
- 💰 The total car purchase price includes the cost of the car itself plus applicable taxes, such as the 13% GST in Ontario.
- 📋 Registration and number plate costs are often included in the car's purchase price when buying from certain platforms like Canada Drives.
- 🏢 Car insurance is mandatory in Canada and can be a significant monthly expense, especially for younger or less experienced drivers.
- 🎓 Having a longer driving history and taking advantage of discounts, like the University of Alberta graduate discount, can significantly reduce insurance costs.
- 🌡 Winter tires are essential and recommended for safety in Canada due to harsh winter conditions, and they may also be required by some insurance companies.
- 🔄 The cost of winter tires includes the price of the tires and potentially additional costs for installation and storage of all-season tires.
- 💡 A battery booster is a useful accessory for cars, especially in winter, to prevent issues with starting the car due to a drained battery.
- 🛣️ Fuel costs are a variable monthly expense that depends on the price of gas and the amount of driving done.
- 🔄 Additional unexpected costs can arise, such as the need for a battery booster or the costs associated with changing to winter tires.
- 👍 The video provides tips on how to get the best deals on additional car-related purchases and emphasizes the importance of planning for both expected and unexpected car-related expenses.
Q & A
What is the first major expense mentioned in the video script for buying a car in Canada?
-The first major expense is the cost of the car itself, which depends on whether it's a brand new or used car, and whether the buyer is taking a loan or paying upfront.
How much did the car cost that the speaker bought in Canada?
-The car cost the speaker around 14,000 dollars out of pocket, without taking a loan.
What is the approximate monthly payment if someone takes a loan for a used car around fifteen thousand dollars with an interest rate of 6.5 percent?
-The approximate monthly payment would be around 460 dollars for a three-year loan.
What tax did the speaker have to pay on the car purchase in Ontario, and how much was it?
-The speaker had to pay the Goods and Services Tax (GST) of 13% on the total purchase price of the car, which amounted to approximately 1,800 dollars.
Why did the speaker not have to pay extra for car registration or number plate?
-The speaker did not have to pay extra for car registration or number plate because the car was bought from Canada Drives, an online used car platform, which included these costs in the purchase price.
What is the mandatory recurring expense for owning a car in Canada mentioned in the video?
-The mandatory recurring expense for owning a car in Canada is the monthly car insurance payment.
How much does the speaker pay for car and renters insurance each month?
-The speaker pays approximately 200 dollars every single month for both car and renters insurance.
What factors helped the speaker get a low insurance amount for their car in Canada?
-Factors that helped the speaker get a low insurance amount include the age of their driver's license, a University of Alberta graduate discount, and signing up for an app that tracks driving behavior.
What is the approximate monthly fuel cost for the speaker, and how does it vary?
-The approximate monthly fuel cost for the speaker is 125 dollars, but it varies depending on the cost of fuel at the time and how much the speaker drives.
What additional expense did the speaker incur due to the winter season in Canada?
-The speaker incurred an additional expense of buying a set of winter tires, which cost around 650 dollars including the rims or wheels.
What was the unexpected expense related to car maintenance that the speaker experienced?
-The unexpected expense was buying a booster pack for the car after the car battery got completely drained and needed a jump start.
Outlines
🚗 Car Buying and Ownership Costs in Canada
Evans discusses the significant costs associated with buying and owning a car in Canada. He emphasizes the importance of understanding additional costs such as insurance, which can vary by province and driver's experience. Evans shares his personal experience of purchasing a car for approximately $14,000 without a loan, and the extra expenses like taxes, registration, and number plates. He also highlights the necessity of car insurance, which is mandatory and can be costly, especially for inexperienced drivers. His strategy for reducing insurance costs includes using a driving behavior tracking app and leveraging his long-standing G2 license and university graduate status for discounts.
🏔 Winter Driving Expenses and Unexpected Costs
The second paragraph delves into the monthly and unexpected expenses of car ownership in Canada, particularly focusing on winter conditions. Evans explains the necessity of winter tires for safety and insurance compliance, which cost him around $650 including rims. He also discusses the costs of tire installation and the potential for additional expenses related to seasonal tire changes. An unexpected expense was a battery booster, which, although optional, became essential after his car battery died during winter. The total cost for the booster and the towing service that wasn't needed was $230. Evans advises viewers to prepare for such costs, especially when owning a used car in Canada.
🔋 Essential Vehicle Accessories and Winter Preparedness
In the final paragraph, Evans recounts a specific incident where his car battery died, leading to a towing service call that was averted by a battery booster. He underscores the importance of having a battery booster in cold Canadian winters, especially for used cars, and shares his experience purchasing one for $95. The paragraph concludes with a reminder of the overall costs of car ownership and maintenance in Canada, inviting viewers to share their experiences and questions, and encouraging them to like and subscribe for more informative content.
Mindmap
Keywords
💡Insurance
💡Car Purchase
💡GST (Goods and Services Tax)
💡Registration
💡Winter Tires
💡Fuel Cost
💡Car Battery
💡Loan
💡Discounts
💡Driving History
💡Unexpected Expenses
Highlights
The importance of checking additional costs with car dealers, as they may vary by province.
Evans shares his experience of buying his first car in Canada and the associated costs.
The significant one-time expense of the car's purchase price, which can be financed with a loan.
The impact of the Goods and Services Tax (GST) on the car's total purchase price in Ontario.
The inclusion of registration and number plate costs in the car's purchase price from certain platforms.
The mandatory nature of car insurance in Canada and its potential high cost for inexperienced drivers.
Strategies to reduce car insurance costs, such as driver's license age, educational discounts, and driving behavior apps.
The variable monthly expense of fuel, influenced by driving habits and fuel prices.
Unexpected winter-related car expenses, such as the necessity of winter tires in Canada.
The cost of winter tires, including rims, and the factors affecting their price.
The additional expense of installing and uninstalling winter tires seasonally.
The optional but recommended purchase of a battery booster pack for emergency car starts.
The common issue of car battery drainage in Canadian winters, especially with used cars.
The cost of a battery booster pack and its importance for safety and convenience.
Evans' recommendation to check for special insurance discounts based on education or employment.
The overall cost of owning and maintaining a car in Canada, including both expected and unexpected expenses.
The suggestion to get a Canadian driver's license early to establish a driving history for lower insurance rates.
The advice on buying winter tires online for potentially better deals compared to physical stores.
Evans' offer to answer questions and engage with viewers on Instagram for further car-related inquiries.
Transcripts
trust me not so many people know about
this but this plays a huge role and can
significantly reduce the insurance
amount that you have to pay so wherever
you buy your car from make sure to check
with the dealer about these additional
costs because they might change
depending on which province you live in
then I got to know that this is a very
common problem in Canada especially
during the winters especially if you
have a used car what's up YouTube It's
Evans here so a few days back I made a
video on this YouTube channel announcing
that I bought my first car in Canada and
if you haven't watched that video yet
then I would highly recommend you to
check it out to know which exact card
did I buy and why and in today's video I
will tell you exactly how much did it
cost me to buy this car in Canada and
how have my monthly expenses changed
since I've bought a car in Canada and in
addition to some planned expenses I also
had to pay for some unexpected things
that I was not anticipating at all when
I first decided to buy a car in Canada
so in this video I will tell you all
that information and if you guys are
also looking to buy a car in Canada soon
then it will give you an idea about how
much will it cost you every single month
to buy and maintain a car so that you
can plan your expenses and budget
accordingly and along with that I will
also give you some tips on how I was
able to get some of the best deals on
some additional things that you need to
buy when you buy a car in Canada so all
this is coming up in this video but
before we begin please make sure to hit
the like button and also subscribe to my
channel because that's how you can
support me and that's how YouTube will
show this video to more number of people
and more people will be able to benefit
from it with that being said let's start
this video so the first and the biggest
expense of buying a car is the cost of
the car itself now it really depends on
what kind of car you are buying is it a
brand new car or a used car are you
taking a loan for this car or are you
paying everything up front for me I did
not take a loan for this car and this
car cost me around 14 000 out of pocket
so it was just a one-time expense that I
had to pay upfront if I wanted to I
could have also taken a loan for this
car with an interest rate of
approximately 6.5 percent because this
is a used car and with that my monthly
payments would be approximately 460
dollars for a three year loan so if you
guys are also looking to buy a car
around fifteen thousand dollars and you
want to take out a loan for it then you
can expect to pay approximately 450 to
500 per month on a three year loan now
the second expense of owning a car in
Canada is the tax that the government
charges you on the total purchase price
of the car now usually if you're taking
out a loan for your car then this tax is
also included as part of the total loan
amount so you don't have to pay anything
in addition to your monthly car loan
payment but just to give you a breakdown
the GST in Ontario is 13 so I had to pay
13 of the total purchase price of the
car which was approximately eighteen
hundred dollars and therefore the total
cost of buying this car was fifteen
thousand and eight hundred dollars or
almost sixteen thousand dollars now the
next thing that you usually have to pay
for when buying a car in Canada is for
the registration of the car and also for
the number plate now luckily for me I
did not have to pay anything extra for
the registration or for the number plate
because if you remember from my previous
video I bought my car from Canada drives
which is an online used car platform and
these things were basically included in
the purchase price of the car in itself
and when the car got delivered to me the
registration was already done and paid
for and they also installed the number
plate right in front of me now I think
it costs around 150 to 200 if you want
to get the number plate and also get the
registration done and it is mandatory to
get these things done when you buy a car
whether it's a used car or even if
you're buying a brand new car so
wherever you buy your car from make sure
to check with the dealer about these
additional costs because they might
change depending on which province you
live in now the biggest monthly expense
or the biggest recurring expense of
owning a car in Canada is going to be
your monthly car insurance payment now
if you don't already know this car
insurance is compulsory or mandatory in
Canada and it is also very expensive now
sometimes for young divers or for not so
experienced drivers the monthly car
insurance payment amount can be as high
as the monthly car loan payment amount
if not more than that and this is
because your car insurance amount
depends a lot on how old you are and
which city you live in and I know some
people who live in Brampton and are
paying 600 or 700 every single month
just in in their car insurance premiums
and this is just crazy but thankfully I
was able to get a really good rate for
my car insurance and for my car plus
renters insurance I'm paying
approximately 200 every single month
which is very reasonable in my opinion
now based on my experience some things
that really helped me get a low
insurance amount was the age of my
driver's license my University of
Alberta graduate discount and the fact
that I signed up for an app that tracks
your driving behavior for up to six
months or for up to one year now even
though this was the very first time that
I had bought a car in Canada I had
already got my G2 license many years ago
when I was studying at University of
Alberta and when I moved to Ontario the
validity of that license got extended by
another four years so basically I had a
history of six to seven years of
Canadian G2 license and that played a
big role in getting a low insurance
amount even though this was the very
first time that I was buying a car
insurance in Canada so I would also
suggest you to get your Canadian
driver's license as soon as possible
after coming to Canada because that will
help you create a driving history in
Canada and that's how you can get a low
Insurance amount whenever you're ready
to buy your first car and whenever
you're ready to get your first car
insurance in Canada I also got some
additional discount because I'm a
graduate of University of Alberta and
since I got my insurance from TD
Insurance they had some promotion going
on where they had special discounts for
graduates of certain colleges so
whenever you're shopping around for car
insurance it is always best to check if
that company is offering any special
discounts for graduates of the college
that you went to or for the company that
you work for trust me not so many people
know about this but this plays a huge
role and can significantly reduce the
insurance amount that you have to pay
now the next monthly expense of owning a
car in Canada is that off the fuel or
the gas as they call it in Canada now
for me the total fuel cost is
approximately 125 dollars per month but
that depends a lot on how much is the
cost of the fuel at that time and how
much do you actually drive and right now
the gas price is pretty high it's around
1.40 and that's why my total fuel cost
is around 125 dollars per month and also
since this is a variable cost and
Depends a lot on how much amount driving
every single month and it can actually
increase significantly if I choose to
drive a lot more than than usual now I
have a fully remote job so I don't have
to drive to work every single day so
that saves a lot of money in fuel costs
and the only times I have to drive is to
actually get food or groceries or if you
just want to go out and explore
different places so it's mostly for
leisure related stuff now at this point
I was like it's fine I had to pay
sixteen thousand dollars for the
purchase price of the car and every
single month I have to pay 200 for the
car insurance and 125 dollars for the
gas cost and all this is pretty
reasonable and I was already kind of
expecting this but then came November
December and it started to snow in
Canada and that's when I realized that
I'll have to spend some additional money
on this car and these were basically
some additional expenses that I had not
expected before at all and that's what
we are going to discuss next so the
biggest additional expense of owning a
car in Canada is buying a set of winter
tires now as you know that it snows a
lot in Canada and the temperatures can
go to as low as minus 20 or minus 30
degrees Celsius and in these extreme
temperatures the regular tires or the
all-season tires do not perform well
they become really hard and stiff
because of that they lose their traction
and it becomes very easy for the car to
skate in the snow and it can also lead
to some serious accidents so that's why
whenever the temperature Falls below 4
degrees Celsius it is always recommended
to use a separate set of winter tires
which are proven to perform well in
those extreme temperatures or negative
temperatures so in addition to safety
another reason why I bought a separate
set of window ties for my car was that
in my car insurance contract it was
written that I would buy a separate set
of winter tires at least during the
months of December to February and if I
fail to do that and if at all I get into
an accident and that accident happens
because of the snow or because of the
winter weather conditions then in that
case I would not get any of my insurance
claim so that's basically why you should
always read your car insurance contract
properly and even if this point is not
included in your contract you should
definitely try to get a separate set of
winter dies so that you can actually be
safe during the winter weather
conditions so it cost me around 650
dollars to get a set of four winter
tires including the rims or the wheels
and I think this was a reasonable price
because I've also seen people pay
thousand dollars or twelve hundred
dollars just for a set of winter tires
the cost of your window tires will
depend on the brand that you choose and
also whether you're getting a set of
rims or Wheels to go with your tires as
well and I think the reason why I got my
winter tires a little cheaper as
compared to other people is that I
bought my winter tires online instead of
going to a physical store like Walmart
or Canadian Tire Etc so if you guys are
also interested you can check out
websites like photos.ca or Quattro
tires.ca and see if you can get a better
deal as compared to physical stores so
the next related yet unexpected expense
of owning a car in Canada is to actually
install the set of window tires that
you've just bought and I had to pay
almost 80 dollars to get my all season
tires removed from the car and get the
new set of winter tires installed on it
and when the winter season or the snow
season is over I will have to get the
winter tires uninstalled and replace
that again with a set of all season
tires so in total I would say that it
would cost me approximately 160 dollars
to get the tires off my vehicle replaced
twice in a given year now the next and
the final additional expense of buying a
car in Canada at least for me was to buy
a booster pack for my car now this one
is completely optional and I really hope
that you never have to use a booster
pack to jump start your car but last
month what happened with me was one day
I just got into my car and I tried to
start it and the car just did not start
I tried starting the car a number of
times but there was no luck and
eventually I realized that the battery
of the car had been completely drained
and that's when I had to call my friend
to actually help me jump start my car
and we tried to jump start my car using
his Honda Civics battery but
unfortunately even after trying that a
number of times we had no success and
the battery was just completely dead so
at that point I thought that okay maybe
it's not just a battery issue or maybe
something's wrong with the alternator of
the car and that's why it's not starting
up So eventually I realized that okay
I'll have to get the car towed and take
it to America mechanics so that they can
inspect and see what's going on so I
ended up calling a number of car towing
services in my area but unfortunately a
lot of them said no because my car was
parked in an underground garage and a
lot of those towing services did not
have a truck that could actually enter
an underground garage and get my car
towed but after a couple of hours I
actually found a towing service who was
able to come to my place and get my car
towed from my underground garage and
once that person came over they actually
said that they would want to try jump
starting my car once again and see if
that would actually work because that
would have made his life and mine a lot
easier So eventually he just took out
this small battery booster from his
vehicle and he just plugged that in and
as soon as he did that the lights came
up on my car and I was easily able to
start my car very quickly in just one go
so that little battery booster was a
huge Lifesaver at that point but since I
had already called in for a towing
service they had to charge me 135
dollars just for showing up and just for
you know trying that battery booster on
my car's battery uh so thankfully I did
not have to pay anything extra for
getting the car actually towed because
there was no need for that anymore but
then I got to know that this is a very
common problem in Canada especially
during the winters especially if you
have a used car a lot of people complain
that their car batteries get drained out
very quickly at least once in the winter
season or in the snow season and that's
why it is very important to have a
battery backup or a battery booster in
your car charged all the time especially
if you're traveling somewhere far during
the winter months so long story short a
battery booster is extremely important
and if you have a used car then you
should definitely consider buying one I
bought mine from Best Buy and I had to
spend approximately 95 dollars for this
specific battery pack and there's also a
lot of battery boosters available on
Amazon on Best Buy and Walmart so feel
free to check it out and I think that's
a great accessory for your vehicle
especially in Canada especially during
the winter months so that's all for
today I hope you guys found this video
to be useful and I hope now you know how
how much does it actually cost to own
and to maintain a car in Canada and if
you guys feel like there are some other
additional expenses then feel free to
let me know in the comments below and if
I encounter any more expenses in the
future I will definitely make another
video for that and also if you guys like
this video then please make sure to hit
the like button and also subscribe to my
channel so that you don't miss out on
any updates from my channel and so that
YouTube can push this video to more
number of people and more number of
people can actually view it and if you
guys have any questions feel free to
comment below or you can also reach out
to me on
instagram119 and I'll be happy to answer
all your questions with that being said
I'll see you guys in the next video bye
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