Buying a car — whether it’s brand new or new-to-you — is a big decision. And there’s a lot to consider. It can be difficult to keep in mind everything you need to ask. But asking the right questions, especially if you’re buying a used vehicle, is essential for saving you time and money in the long run.
If you’re in the market for buying a car in Ontario, here are our top five tips you may not have considered:
- What can you afford to spend?
Okay, it goes without saying you’ve probably thought about what you can afford to spend on a sticker price. But anyone who’s owned a car knows that the fees don’t end once you drive it off the lot. Take a look at the car you’re considering purchasing — what is the warranty like? What repairs will be needed down the line? How big is the gas tank and how often will you need to refuel? If you consider the types of distances you’ll likely be driving, you’ll know what kind of fuel efficiency will be best for you.
- How much will it cost to insure?
How much will the insurance cost? This can be a big hidden money eater. Further to your own driving record, certain types of cars cost less to insure than others. Even little things, such as the colour of the car, can affect the insurance. Be sure to check fees before you drive off the lot.
- Look at the purchase source.
Are you buying from a private seller or a dealership? This is an especially important point to consider if you’re buying a used car. Both can have their pros and cons, but what you really need to keep in mind is the safety. Private sellers don’t have to guarantee anything. This can mean a good price upfront, but plenty of fees down the road (literally). Most dealerships, on the other hand, offer a Safety Standard Certificate with every car. This is a certificate issued by a Ministry of Transportation-approved Motor Vehicle Inspection Station once a vehicle has passed a safety inspection. This inspection covers the minimum safety requirements for vehicles in Ontario. Some dealerships go above and beyond the minimum. At Prudent Value Cars, for example, we offer a 30-day warranty and rigorous safety testing. When maintenance costs are something you’ll have to cover down the line, you want to trust you’re getting a car that’s up to standard.
- Financing
When you’re dealing with debt, it can be difficult to secure a loan when you want to make a purchase. But some purchases are necessary, such as buying a car. If your vehicle isn’t cutting it anymore, you may be having trouble getting financing. Prudent Financial Services knows your struggle — that’s why we offer car loans for people with bad credit and even undischarged bankrupts. Whether you go with Prudent Value Cars, or another dealership, make sure you look into what your financing options are and that you can afford the payment for the duration of the payment plan. If it’s something that’s going to be unsustainable, you’re only going to end up with more debt.
- Consider Present and Future Value
While you may be hoping to own this car for the rest of your life, it’s very possible you’ll end up selling before that happens. Check the re-sale value of your vehicle so you know that a) you’re getting a good deal in the present, and b) you’re buying a car that may be able to make you some money back in the future.
When you are ready to start your next search, use these buying tips to get the best deal out there. Concerned that your credit may not give you many options for financing? We offer car loans to people with bad credit – even discharged and undischarged bankrupts.
Call Prudent Financial today at 416-223-9300 or visit www.prudentfinancial.net.