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December 13, 20232 min read

Do you Need a Canadian Driver's License to Buy a Car?

Are you new to Canada and in need of a vehicle? Despite the efficient public transportation systems, new immigrants and long-term visitors may prefer having their car. Unfortunately, the buying process differs from province to province. Each Canadian area has its vehicle regulations, which can make it challenging for newcomers.

Exchanging A Foreign License for A Canadian Driver’s License

Before you can own a car, you need to know the regulations of the province you want to register your motor vehicle in. Although requirements differ, you will need a Canadian license to register your new car.

You may be able to exchange your home driver’s license for a Canadian one. Most provinces or territories have agreements with other countries to facilitate such conversion. These countries include the United States, the United Kingdom and some European and Asian countries.

The exact process differs from province to province. Apart from a valid license, you may be required to prove you can stay in Canada. You may also need to present your home ID, work permit, proof of residency, driving history and other documents. To be able to exchange, a minimum of two years of driving experience is often required.

In provinces that do not have an agreement with your home country or do not accept foreign licenses, you must complete a driver’s test. If you have an International Driving Permit (IDP), you can drive on your home license. In Ontario and a few other provinces, visitors may not need an IDP if they have an official translation of their license in English or French.

Exchanging your driver’s license also applies if you move to a new province or territory. Be sure you look up the regulations of the region you wish to move to. However, if you are only visiting a region briefly, you do not need to swap your license.

All foreign drivers must exchange or convert their licenses during a specific timeframe. This timeframe ranges from three to six months, depending on the province. You will have to surrender your home license in exchange.

Car Insurance and Vehicle Registration

Now that you have your Canadian driver’s license, it is time to find a good car dealership. If you opt for a used car, you want to register one in your province. If you purchase from a private seller, keep track of all your documents, as they will be required for vehicle registration.

Again, buying car insurance is different in every province and is required before you can register your new car. In most places, you can purchase coverage from private insurance companies.

Explore Canada in Your New Car Today

Buying a car in Canada can be challenging. Besides the many regulations, prospective owners must also worry about financing their new rides. FFUN Financial offers car loans on a wide variety of vehicles. We can help you find the car you need.


-- Written by Kyle Senger