Passing your test is an exciting time, and you’ll be itching the get out onto the road. That being said, the process of buying a new car is intimidating, especially for first-time buyers. You need to make sure you’re getting the right car to suit your needs and be the most cost-effective.
You will have to compete with pushy sales personnel who are just trying to make a sale and the burning in your pocket to buy the first car you see. Taking your time before you buy your car will have a huge payoff and will save you being left with fees you can’t afford or costly trips to the garage.
Throughout this article, we will guide you through how to navigate the complex world of auto sales.
Pre-Owned Dealerships
You already know that your research is important because that’s why you’re here, so we won’t bore you by telling you to carry out research.
Unless you’ve been saving your entire life, buying your first car later in life, or getting a loan from the bank of mum and dad, the first place to start your search is used car dealerships, such as via Clutch. There, you will be able to search for any manufacturer you can think of and set the filters to suit your needs. You can also apply for financing.
You may be worried about using buying a used car because you have elderly relatives telling you horror stories of back in their day. Rest assured that the used car market is booming and cars made these days are built to stand the test of time. Further, the majority of used cars from reputable sealers will come with their original or renewed warranties.
So, if you want to find a car at a realistic price that you won’t be paying off for generations to come, then pre-owned dealerships are the place to be.
Your Credit Rating Matters
Unfortunately, even if you make the money, you won’t always be accepted to buy a car on finance. If you’ve been in debt previously or are too young to have built good credit, you may find borrowing money difficult. One of the most difficult parts of buying a new car is getting your hopes up, only to be told no by the potential lender.
Your credit rating is based on how well you have managed money in the past and will analyze everything from how much debt you’ve had to any historical missed payments. To be in with the best chance of getting accepted for finance, make sure you know your credit rating. Typically speaking, the better your credit rating, the less interest you will end up paying.
Get Something Reliable
We mentioned reliability above. Just because cars are built to last, it doesn’t mean that every used car you see will be reliable. For example, if you buy a car from someone on eBay because you’re getting a glamorous deal, there’s most likely something wrong with the car.
You need to make sure that your car won’t leave you stranded after doing a couple of thousand miles. More than the colour, fancy decals, spoilers, or any of the visuals, the most important aspect is reliability. After all, once you’re in the car you can’t even see what it looks like. Before you sign on the dotted line, do the following things:
- Learn everything there is to know about a car’s history.
- Get a free VIN check that may reveal any hidden problems.
- Search for dependability ratings to find out everything you need to know about your chosen model.
- Search the Transport Canada website for your car – it will tell you if the model has been recalled.
- Take someone with you that has already got a car – they will see through any lies you may be getting told.
It’s better to find out all of this information whilst it’s still with the dealership – there’s not much you can do once you’ve already been ripped off.
Factor In Ongoing Costs
Buying a car is just the first cost involved after passing your test. You need to remember to work out what your car’s ongoing costs will be. You need to find information about everything including its fuel consumption, insurance costs, and road tax rates. Other things to ask yourself, outside of the mandatory, is how much the car will cost to fix if anything happens down the line.
The following sections will give you a bit of information about how you can save money when you buy your first car in Canada.
Saving on Insurance
Car insurance can vary depending on a range of things including how you drive, the car you drive, and the area you live in. Under Canadian law, you need to have liability and comprehensive cover included, but that doesn’t mean you can’t manage other costs.
You can manage the cost of insurance by opting for a car with a good amount of safety features, and that has passed with a high score on crash tests. Never take the first quote you are given. Insurance companies are working for your custom, so ask around everybody for the cheapest quote.
Then, once you’ve found it, call your desired insurance company and tell them that you can find cover elsewhere and for what price (they may reduce their rates to have you onboard). Another thing you can do is have yourself put onto someone else’s insurance, merging your insurance will often nab you the greatest deals.
Finally, you could consider taking out insurance that requires you to have a black box. The black box is a device commonly used by young drivers, which allows the insurance company to monitor its usage and ensure that speed limits are kept to. Although there may be some restrictions, insurers usually require one to be used for the first year only.
Saving On Gas
On the topic of good driving habits, you can keep your cost of fuel down by driving properly. This means turning your engine off when required, not revving your engine, or slamming on the brakes all the time. Another way to save money on gas is to stay updated with the cost of fuel per gallon – the best app on the market right now is GasBuddy. Moreover, you can earn points by joining one of the many reward programs – with the likes of Esso and Shell offering the chance to make some great savings.
Hunting for your first car is an exciting time that comes with a lot of stress and anxiety. Knowing how to navigate the market and what to watch out for will help you greatly. At first, shop for pre-owned cars and make sure you know everything there is to know about your car of interest’s history. Taking someone more experienced with you can make the process feel a lot less stressful.
Knowing what ongoing costs you will face and how to save money on the roads will help you work out a more realistic budget. When you’re out in the world of auto sales, don’t let relentless sales teams pressure you into anything. Know your stuff and you’ll be just fine.
In conclusion, when purchasing a car, it’s important that you do your research before taking the plunge and buying one. Visit Prestige Cars to compare prices and learn more car purchasing tips.
