Delivery car and registration: what you need to know

Published on April 29, 2021
7 mins reading time
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The vehicle registration process differs for new and used vehicles. Discover the differences along with the steps involved in taking possession of your vehicle, whether purchased or leased.

Be ready for the big day

This section pulls together all the pertinent information concerning the delivery and breaking in of a new car.

New owner of a used car?

Before taking possession of a used car, consult this section of the guide and don’t forget to check that the car you’re buying:

  • is in the same condition as it was during your test drive;

  • has approximately the same odometer reading;

  • comes with two keys, the manuals, and all other items that were to be included. 

Plan the delivery

You’ll first need to make an appointment with the dealer to go and pick up your car.

If possible, chose a sunny day for your delivery: certain defects (such as scratches) only show under good lighting.

If you must take delivery at night, ask for the car to be parked inside, in a well-lit area.

Verify the contracts

Take the time to look over the contracts:

  • The purchase price and all clauses should be exactly as negotiated with the dealer—options included!

  • Check that the vehicle identification number (VIN) is correct, on both your sales contract and on your financing or leasing contract.

The last digit of the model year corresponds to the letter in the 10th position of the VIN. For example, a letter A means 2010, a B means 2011, etc. Does everything match up?

And if it’s a leasing contract?

On top of the total cost of the car and the normal checks (e.g., clean seats), don’t forget to verify the following details on your contract:

  • The residual value (already established) of the car

  • The amount required should you decide to buy back the car at the end of the lease term

  • The monthly leasing cost and the number of payments to be made

  • Your name, your address and the VIN

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Does the odometer reading correspond to that indicated on the leasing or sales contract? You car’s odometer will no longer read zero, but it shouldn’t be over 1,000 km. That would be quite a bit for a new car!

If the reading is higher than expected, ask the seller why. The car may have been used as a demonstrator without your knowledge… That means it is now a used car if it was first registered in the dealer’s name, and the dealer can’t make you pay the transport and delivery charges (and some other costs).

On the subject of “demos”

If you buy a demonstrator, it means the clock is already running on the warranty, the tires are already partly worn, etc. The price should be adjusted downward to reflect this light usage. If you choose to buy a “demo”, do your homework: check the warranty booklet and ask for the exact date that the vehicle came into service.

Do the grand tour

  • Locate any scratches, dents and other possible damage done during the vehicle’s transport. Note any abnormalities that the dealer could have repaired before delivery. Why did they not do it? Ask for explanations if needed.  

  • In the interior, be sure that all materials and coverings are clean and in perfect condition.  

  • Check to make sure all included accessories are in fact there: spare tire or inflation canister, jack, gas cap, owner’s manual, etc. 

  • Check that all the options you ordered are actually there. Remember what you chose and what you paid for!

  • Test the accessories. Is everything working well? Some, such as the navigation system, can be very complicated: get the attendant to show you how to use them.

Once the contracts have been reviewed, the dealer must have you sign this delivery clause:

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(Source : contrat de la Corporation des concessionnaires d'automobiles du Québec)

Do not sign anything before checking the following!

Leave nothing to chance

If you notice any abnormalities during your walkaround, make an appointment with the dealer right away to have them corrected. If there is a major problem, wait for it to be repaired before signing the delivery clause of your contract.

Once on the road, stay alert

It’s time to drive away. Great! But there are still things to check… on the road, pay special attention to these points:

  • Is the driving smooth, responsive and quiet, with no rattles or excessive engine noise?

  • Be attentive to the gear changes and braking. Anything seem wrong? Tell the dealer as soon as possible.

Learn the essentials about “breaking in” a car

Did you know that new cars (even today) need breaking in? This means a period of time during which you should drive with care to make sure all the vehicle’s components are working properly together. Driving this way for the first few kilometres helps the engine, the shock absorbers, the brakes, and the tires. In short, it’s worth the trouble!

Advice for the break-in period

  • After each cold start, let the engine idle for at least a few moments to let the oil circulate properly.

  • Avoid hard starts and stops, tight cornering and quick gear changes.

  • On long trips, vary your speed often (5 to 10 km/h faster or slower is fine).

  • Don’t tow a trailer during this period, and take care not to overload the car.

  • As the days go by and the kilometres accumulate, the break-in is progressing too: you can gradually be more aggressive on the accelerator.

Finally, after 1,200 kilometres  or so, you can use your car normally. This break-in distance of 1,200 kilometres is an estimate. For your specific model, our experts recommend that check your owner’s manual.

Key No. 11

You’ve paid for your new car, so make sure it’s delivered to you in perfect condition and according to all the conditions you laid out. Once on the road, respect the break-in period so that you don’t start wearing out your car prematurely.

Register your car

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Now that it’s yours, you need to register your car.
The cost of this step depends on several factors. Owners of cars with bigger engines, for example, have to pay more.
All car buyers must pay the Quebec Sales Tax (QST) at the time of registration, if this hasn’t already been done at the dealer.
The SAAQ collects this tax if the transaction is between individuals.
Learn all about the registration process as it applies to your situation:
  • Purchase from a private seller

  • Purchase or lease from a dealer

Purchase from a private seller

To register your car, you can go to a SAAQ-mandated CAA-Quebec service centre with the seller, or to another local service centre.

Both of you must provide one piece of identification. The seller should also be prepared to show the existing vehicle registration.

To register your used car in your name, you’ll have to declare the odometer reading. Take note of it before you go inside to the counter; this will save time!

On the subject of taxes

Good news: because this is a transaction between individuals, you only have to pay the QST.
The amount of QST is established as follows:

  • For a car that 10 years old or more, the QST is calculated based on the agreed-upon sale price.

  • For a car that is 9 years old or less, the QST is instead calculated based on the average wholesale price (AWP) of the vehicle as established by the Guide d'évaluation Hebdo, automobiles et camions légers (published by Hebdo Mag inc.). The SAAQ then deducts $500 from that price and applies the tax calculated on either the agreed sale price or the AWP, whichever is greater.

Example: The car is three years old and has an average wholesale price of $15,000. You’ve agreed with the seller on a price of $14,100. The QST will be calculated based on the first, higher value, less $500 (in other words, $14,500).

Purchase or lease from a dealer

Some dealers will handle the registration for you, using the SAAQ’s online services; in this case, they will look after all the formalities..

Otherwise, you must go to a registration centre with the following documents. The SAAQ also offers online services for individuals.

  • The form Attestation de transaction avec un commerçant, completed by the dealer. The dealer will also give you a temporary registration document—sometimes called a “transit”—valid for a maximum of 10 days.

  • The form Description du véhicule neuf or, in the case of a used car, the previous registration;

  • Your driver’s licence.

You must pay the registration fees, but not the Good and Services Tax (GST) or the QST, both of which will have been collected by the dealer at the time of your transaction.

On the subject of taxes paid to the dealer

As always, the GST is calculated based on the sale price as it appears in the sale contract. The QST, for its part, works as follows:

  • For a car that 10 years old or more, the QST is calculated based on the agreed-upon sale price.

  • For a car that is 9 years old or less, the QST is calculated based on the residual value of the car, minus $500, if this amount is greater than the sale price. The residual value (officially called the “average wholesale value”) is the estimated value from the Guide d’évaluation Hebdo: automobiles et camions légers, published by Hebdo Mag Inc.

Example: Your new car is three years old and has a residual value of $15,000. You’ve negotiated the price down to $14,100. The QST will be calculated on the higher value, less $500 (in other words $14,500).

Key No. 12

You’ve gathered all the required documentation and registered your new car. This is a necessity to drive legally, in Quebec and anywhere else!