Total Cost of Buying my FIRST CAR in Canada | Canada Vlog | International Students | Canada

Shivansh Singla

9 Jan 202312:48

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

00:00

🚗 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.

05:02

🏔 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.

10:02

🔋 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

Insurance refers to a contract in which a company provides financial protection to an individual in exchange for a fee, called the premium. In the context of the video, car insurance is mandatory in Canada and can be a significant expense, especially for young or inexperienced drivers. The video discusses how factors like age, location, and driving history can affect insurance rates, and how the speaker managed to secure a reasonable rate for their car and renter's insurance.

💡Car Purchase

Car purchase is the act of buying a vehicle, either new or used. The video focuses on the financial aspects of purchasing a car in Canada, including the upfront cost, potential loans, and additional expenses such as taxes and registration fees. The speaker shares their personal experience of buying a car for approximately 14,000 dollars without taking a loan.

💡GST (Goods and Services Tax)

GST is a value-added tax levied on most goods and services sold for domestic consumption. In the video, the speaker mentions that in Ontario, the GST rate is 13%, which is applied to the total purchase price of the car, adding to the overall cost of buying a vehicle.

💡Registration

Registration is the process of recording the ownership of a vehicle with the government. The video explains that the cost of car registration and the number plate is typically included in the car's purchase price, but it can vary by province. The speaker did not have to pay extra for registration or the number plate due to buying from an online platform that included these costs.

💡Winter Tires

Winter tires are specially designed tires that perform better in cold temperatures and snowy conditions. The video emphasizes the importance of winter tires in Canada due to harsh winter conditions and the legal and safety implications. The speaker recounts the cost and necessity of purchasing and installing winter tires, which was an unexpected expense.

💡Fuel Cost

Fuel cost refers to the expense of purchasing gasoline for a vehicle. The video discusses the variable nature of fuel costs, which depend on the price of gas and the amount driven. The speaker provides their personal fuel cost of approximately 125 dollars per month, highlighting the impact of high gas prices.

💡Car Battery

A car battery is a rechargeable chemical power source that supplies electric current to a vehicle. The video mentions an incident where the speaker's car battery was drained, leading to the need for a battery booster. This serves as a reminder of the potential additional costs associated with car maintenance, especially in extreme weather conditions.

💡Loan

A loan is a sum of money that is borrowed and expected to be paid back with interest. In the context of the video, the speaker discusses the option of taking out a car loan with an interest rate of approximately 6.5%, which would result in monthly payments for a three-year term. However, they chose to pay the car's cost upfront to avoid the loan.

💡Discounts

Discounts are reductions in the price of a product or service. The video mentions various discounts that can be applied to car insurance, such as a graduate discount from the University of Alberta and potential discounts for employees of certain companies. These discounts can significantly reduce the cost of insurance.

💡Driving History

Driving history refers to a record of a person's driving experience and behavior over time. The video explains that having a longer driving history, like the speaker's seven years with a G2 license, can lead to lower insurance rates, as it may indicate experience and lower risk.

💡Unexpected Expenses

Unexpected expenses are costs that were not initially planned for or anticipated. The video outlines several unexpected costs associated with car ownership in Canada, such as the need for winter tires, installation fees, and a battery booster. These expenses highlight the importance of planning for potential additional costs when budgeting for car ownership.

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.