Guide to Buying a Cheap Used Car in Canada and 10 Top Picks

Unless you really enjoy talking to strangers on the bus or waiting for who-knows-how-long for your ride to show up, then getting a used car sounds like a pretty good plan.

But the used car market today is more robust than ever. Whether you're looking for a car, SUV, truck, or van, you can find a great deal in a cheap, used car. And you can do it all in days, not weeks. This quick guide will show you the easiest way to find a great deal and get the best value on your next vehicle.

Buying an affordable used car, here's what to consider first:

1. Beware of higher than advertised interest rates

The sticker price on a used car can be enticing. But it’s what you don’t see on the online listing or window sticker that changes the game. If the car needs an inspection and safety repairs, that can be expensive. Then there are warranties to consider, not to mention taxes. But the factor that takes most people by surprise is the interest rate. 

On a used vehicle, interest rates are higher than the advertised rates for new cars. Where it’s common to see new car interest rates between 0% and 4.99% depending on the car and financing term, used vehicles don’t qualify for those subvented interest rates. Two options remain: finance at a higher rate or pay cash. 

2. Should I pay cash for a car?

The idea of owning a vehicle outright with no payments is certainly intriguing. But it’s seldom a good idea to pay cash for a used car. 

• Most car buyers don’t have that kind of money on hand. 
• If you do have the cash to buy a car, it can put you in a tight financial position if you have a surprise expense.
• Your money can earn you more in a modest investment than you’ll pay in interest usually. 

For most used car buyers, the better option is to make payments on a pre-owned car loan.

3. Can you get a loan for a private sale?

When you look at the used car listings, many are for privately owned vehicles listed by private sellers. The problem is that you don’t have the money on hand to buy the car right away. You can:

• Make an agreement with the seller and get a bill of sale. 
• Visit your bank or another lender to apply for a used car loan. 
• Wait until the loan is approved and funded, which can be a day to a week. 
• Or be denied the loan and start all over. 

Loans for privately purchased cars are possible, but they’re tough to navigate and time-consuming. And often, they’re at an interest rate that seems higher than it should be. 

4. Can I get a used car loan from a dealership?

You may be surprised to learn not only that car dealerships sell used cars but have some of the best loan options available to you. In fact, most car dealers outsell new cars with used 2 to 1. Because it’s a high-volume part of their business, dealerships have access to some of the best rates and terms with lenders specifically for auto loans. Better yet, financing is often done on the spot or within a day.

Where do you find the best cheap used cars?

In Canada, there are hundreds of thousands of used cars for sale at any one time. Many of those are in the range you’d consider a cheap used car, from $3,000 to $15,000. The various locations you’ll find cars listed run the gamut. Car values will be different from province to province as well. 

If you’re looking to sell your current vehicle, also read our article What Is My Car Worth? where we discuss free car value tools, trade-in value vs resale value, and depreciation’s impact on trade-in value.

Autotrader

Of the sites listing used cars for sale, Autotrader is one of the most popular. Typically containing more than half a million listings nationwide, Autotrader has many options to choose from. While diverse listings are a positive aspect, this site is notorious for sellers who don’t honour the price they advertise the vehicle for. It’s also inundated with premium listings that may be masking the gem you’re looking to buy.

Facebook Marketplace

Another option gaining popularity is Facebook Marketplace where you can browse through free vehicle listings. There are thousands of vehicles listed, but it’s definitely not user-friendly to sort through those listings. 

Keep in mind there’s no guarantee that the details on the ad are true and accurate, and there’s always a chance the listing is a scam. Financing the vehicle is completely up to you.

Kijiji

Canada’s favourite classifieds website is Kijiji where you can buy and sell virtually anything. That includes used cars by the thousands. It’s relatively easy to search the listings for the model or details you want, but there are hiccups for Kijiji also. 

Like Marketplace, many ads are fake with the intention to scam you. And like Autotrader, there’s a trend where the listed price isn’t the actual price you’d have to pay. Kijiji also doesn’t offer any financing services.

Used car dealerships

Across the other platforms, you’ll find vehicles listed by dealerships. Dealerships have a responsibility to provide accurate details and are accountable for them. The vehicles are also professionally inspected and serviced. 

Unfortunately, if you have bad credit, some dealerships may not be equipped to take care of you well. Also, you'll often be charged various dealership fees, so make sure you're clear about this before you sign any paperwork.

Canada Drives

Since 2010 Canada Drives has helped over 1 Million Canadians get approved for financing and find a car they love and can afford. We have built an extensive nationwide network of partner dealerships that offer special financing programs for all credit scores, and carry a variety of quality used vehicles at affordable prices. 

Through Canada Drives you can get pre-approved for a car loan online in minutes. Once you have your pre-approval you will be matched with a local partner dealer in your area. They will show you all the vehicles you qualify for, you just pick the one you want and drive away! It's by far the easiest way to buy a cheap used car in Canada! 

What to look for when buying a cheap used car:

No matter how much or how little you’re looking to spend, you need your car to be reliable. Certain things should be on your checklist for a cheap used car including:

•  A vehicle history report such as CARFAX report. A VHR identifies any red flags like title issues, major accidents, or gaps in history that you may want to walk away from. 
• Warranty included or available. Unless you’re ready to pay for costly repairs, you’ll want a warranty on your used car. Find out how much factory warranty is remaining and price out extended warranty options. 
• A vehicle inspection. Make sure the car has been checked over and safety certified by a licensed technician. But you should personally look for warning signs like rust spots, dents and dings, mismatched paint, leaks under the car, and unusual wear on tires. This is especially important if you buy from a private seller who probably won't provide a CARFAX or inspection report.

Here are our other great resources for buying used vehicles:

• Buying a Used Truck: 10 Things To Keep in Mind
• Buying a Used Electric Car: Here’s What to Look For
• Buying a Used Convertible: A Complete Guide & Checklist

Is it cheaper to lease a used car?

Leasing may also be an option for a used car, depending on where you find the vehicle you want. Since new car advertisements often promote leases at a lower monthly price than financing, what are the perks for leasing a used car? 

• Lower monthly payment. Like a new car lease, it’s usually less expensive for Canadian drivers to lease a used car. 
• Flexible options at lease end. When your term is done, you can either give it back or buy it out. 
• More bang for your buck. You may be able to afford a used luxury or premium car by leasing rather than financing. 

But there are negatives to leasing a used car too: 

• You don’t build equity. 
• You may need to pay wear and tear penalties. 
• Most of all, there are very few dealers who offer used car leases. 

Best Used Cars Under $10,000 

We have put together a list of the best used cars to buy in Canada for under $10,000. Our favourite used vehicles offer reliability, value, and are relatively easy to maintain. Many of these cars will include advanced safety features, some technology features such as Android Auto, Apple Carplay depending on model year, and will provide good fuel economy. The age, mileage, availability, and actual price of these vehicles will vary depending on where you live, but due to their popularity there is a high likelihood that many of these vehicles will be available at an attractive price point. 

1. Honda Civic 

Photo: Kelley Blue Book

• Pros: Excellent fuel economy and very reliable. Widely available compact sedan that meets the average person’s driving needs. Known for lasting well over 200,000 km with regular maintenance.
• Cons: Older models may have high mileage.

2. Toyota Corolla or Corolla Hybrid

Photo: Kelley Blue Book

• Pros: Renowned for reliability and impressive fuel efficiency. Low maintenance costs and great resale value.
• Cons: Basic interior features and design, but durable.

3. Mazda3 

Photo: Edmunds

• Pros: Sporty handling, stylish interior, and good fuel economy. Offers more driving engagement than some competitors.
• Cons: Rust can be an issue, so look for models with rust-proofing.

4. Ford Focus 

Photo: Edmunds

• Pros: Affordable with good fuel economy, especially in hatchback models that offer more cargo space.
• Cons: Some transmission issues in specific models, so verify recalls and repairs.

5. Hyundai Elantra 

Photo: Motortrend

• Pros: Reliable, affordable, and often well-equipped for the price. Comfortable for daily commutes.
• Cons: Interior materials may feel cheaper, but generally good value.

6. Toyota Camry or Camry Hybrid

Photo: Motortrend

• Pros: Reliable, spacious, and comfortable. A great option for families looking for a midsize sedan.
• Cons: Slightly higher fuel consumption than compact cars unless you can find the very fuel efficient Hybrid model.

7. Nissan Sentra 

Photo: Edmunds

• Pros: Spacious for a compact car, reliable, and fuel-efficient. Great commuter car.
• Cons: Not as sporty or feature-packed, but dependable for the price.

8. Subaru Impreza 

Photo: Edmunds

• Pros: Standard all-wheel drive, which is ideal for Canadian winters. Good handling and safety features.
• Cons: Lower fuel economy due to AWD, and some models may have high mileage.

9. Chevrolet Cruze

Photo: Motortrend

• Pros: Comfortable ride, decent fuel economy, and often comes with modern tech for the price range.
• Cons: Some models have had recalls, so check for a clean history.

10. Volkswagen Jetta 

Photo: Motortrend

• Pros: Known for a comfortable and high-quality interior, with good handling and solid fuel efficiency.
• Cons: Some maintenance and repair costs can be higher than Japanese brands, but a solid choice with good records.

Best Used SUVs Under $15,000 

Our list of favourite used SUVS that you can find for under $15,000 includes a variety of quality sport utility vehicles that offer ample cargo space, advanced safety technology, comfort features, advanced driving features such as adaptive cruise control, and the added confidence of all wheel drive or 4x4. Available model years will depend on where in Canada you live, as will the mileage and price. 

1. Honda CR-V 

Photo: Auto Trader

• Pros: Known for reliability, spacious interior, and good fuel economy. Plenty of cargo space, standard equipment and comfortable seating make it great for families.
• Cons: Some models have minor issues with the A/C system, so check the service history.

2. Toyota RAV4 

Photo: Motortrend

• Pros: Exceptional reliability with low maintenance costs and strong resale value, one of the most popular compact suvs on the market. Available in both AWD (all wheel drive) and FWD (front wheel drive) options.
• Cons: Older models may have dated interiors and fewer tech features.

3. Mazda CX-5 

Photo: Motortrend

• Pros: Known for sporty handling, attractive design, and good fuel efficiency. Interior feels high-quality for the price.
• Cons: Interior space may be slightly smaller compared to other compact SUVs.

4. Ford Escape 

Photo: Motortrend

• Pros: Offers good value for its price, with a spacious interior and decent performance. Plenty of them are on the market, so you’ll have lots to choose from.
• Cons: Some model years had transmission issues, so inspect carefully.

5. Hyundai Tucson 

Photo: JD Power

• Pros: Affordable, good safety features, and generally reliable. Comfortable ride with good tech features for the price.
• Cons: Fuel efficiency isn’t the best compared to similar compact SUVs.

6. Subaru Forester 

Photo: Edmunds

• Pros: Standard AWD makes it a great reliable used car for Canadian winters, and offers good visibility and ground clearance.
• Cons: Fuel economy is slightly lower due to AWD, and some models may have higher mileage.

7. Nissan Rogue

Photo: Autoweek

• Pros: Affordable, comfortable interior, and has a reputation for being reliable if maintained well.
• Cons: Some models may have CVT (Continuously Variable Transmission) issues, so ensure a thorough check.

8. Chevrolet Equinox

Photo: Edmunds

• Pros: Spacious cabin and smooth ride. Often available at an affordable price point.
• Cons: Older models have a reputation for burning oil, so check the service records and look for a thorough inspection.

9. Kia Sportage

Photo: Auto Trader

• Pros: Stylish design, decent interior features, and generally reliable. Priced affordably compared to some other SUVs.
• Cons: Rear seating can be tight, and fuel economy isn’t the best.

10. Jeep Patriot 

Photo: Car and Driver

• Pros: One of the more affordable SUVs, and 4x4 versions offer good off-road capability. Straightforward design and relatively simple mechanics.
• Cons: Interior materials can feel cheap, and some models may have transmission concerns.