Use the checks below to confirm whether the answer fits the family, provider, and school situation.
Prepare documents and questions before requesting RESP withdrawals for school.
A car purchase is not automatically offside, but the facts matter. CRA guidance lists the purchase of a car as a reasonable transportation expense if the car is in the beneficiary's name and used to transport the student to and from school and school-related activities.
That is a narrow use case. A family vehicle, a parent's car, a luxury purchase disconnected from school, or a car bought mainly for someone else is much harder to justify as an EAP expense.
The promoter has the practical gatekeeping role. It may ask for proof of enrolment, ownership documents, cost details, insurance or registration information, and an explanation of why the car is needed for school transportation.
Families should also compare the car cost with other transportation options. A transit pass, moving closer to campus, or local transportation may be easier to document and more proportionate.
How to check this rule
Details that matter
Student ownership matters
CRA guidance specifically points to the car being in the beneficiary's name.
School use matters
The car should transport the student to and from school or school-related activities.
Not every car qualifies
A cost can be unreasonable if it is not in line with furthering post-secondary education.
Ask before buying
Promoters may be more restrictive than the CRA examples, so confirm the process first.
Example
Example: A student in a college program has a required placement across town with no practical transit option. A modest car in the student's name may be easier to connect to school than a family car used by several people.
Questions to ask your provider
Would you treat a car purchase as a reasonable EAP expense in this situation?
Does the car need to be registered in the beneficiary's name before the withdrawal?
What documents do you require for the car purchase?
Would insurance, fuel, parking, or maintenance be treated differently?
Is there a maximum amount you would approve without additional review?
Read next
Withdraw RESP money explains the broader decision and links to related tools.
Tool next step
RESP Withdrawal Checklist can help estimate the practical contribution choices before you confirm eligibility with the promoter.