Obtaining your driver’s license is a significant milestone, offering newfound independence and mobility freedom. The next logical step after getting a driver’s license is to get a car, let it be a new or old one. Owning a car can significantly enhance your daily life in Canada, a country full of diverse landscapes and vast territories. However, with the multiple options available, getting the best car deal can take time and effort. Buying a car is a major financial step in today’s economic and competitive world. The present auto market can be incredibly intimidating to buyers. Cars are in high demand, with increasing prices and interest rates. So there is no easy way to buy a car. They are expensive, and the process can be stressful and time-consuming. This blog guides you through securing the best car deal in Canada.
Before going to the dealerships
You need some preparations before heading to the dealerships to secure your car deal. Here we will discuss some things to consider before going to a dealership for a new or used car.
Make a budget
Buying a car is a huge step in anyone’s life. They come with a huge price tag and costly maintenance bills. Considering you are a beginner with a new driving license, you may be in your late teen or early 20s. At this stage of your life, you are going to make one of the biggest decisions of your life. So you need to take every step wisely in buying a new car. There is a financial saying or advice which says that in order to buy a car, you need to have the money to buy the same car twice. This help you with all the car maintenance and fuel for at least a year or two.
New or used car?
You need to decide whether to get a new or used car. Your friends and fellow drivers might have recommended getting a used car. They suggest this because you can learn and gain experience without worrying about big expenses or damaging a brand-new car. Usually, new drivers buy a used car for much less money. They try everything possible, learn and gain experience until it breaks down. This way, they drive their brand-new car without worrying about making huge mistakes. If you are confident enough and believe you can take good care of your car, you can also go for a new car. But remember to have enough money as a backup for your new car as you are a beginner, and a small decision can invite a huge maintenance cost.
Know your needs
There are many types of cars in the market. You need to choose the car for you as per your needs. If you are young, you would prefer a sports car among other types like SUVs, hatchbacks or a sedan. But being a beginner who just got their driver’s license, a sports car might not be the best fit for you. You need to be an experienced driver to handle a sports car. A hatchback, compact SUV or sedan might do the job for you. You can always change your mind after a test drive and remember to test drive every type of car.
Research on the car
You might have chosen your car after getting to know your needs. Now you have to research deep on your car. For example, if you chose a hatchback, you need to know the average cost of maintenance of a hatchback. Check whether the car brands in your state sell hatchbacks or not. List down the car brands selling hatchback cars, and you can choose a brand based on various factors.
Choosing a brand
Choosing the best car brand for you can be a difficult job. There are many car brands with huge competition. You should look into the reliability of the cars of all the brands, availability and cost of the spare parts and maintenance of all the brand’s cars. It’s better to choose the most reliable over the good-looking one. Different brands set the price tag for similar cars very high or low compared to one another. This is because of the brand value and other factors of the brands. So your budget also plays a huge role in choosing a car brand.
Getting into the market
Getting into the market looking for actual cars is the most important thing in the process. Things may go differently than you thought. You should be able to do the real talk to the salesperson and get the best deal you want.
Dealerships
Dealerships have plenty of strategies to maximize their profit. They want to gain as much profit as possible and also make sure you buy the car from them. So coming to the dealerships with the necessary knowledge, negotiation skills, and bargaining power can get you a car at a much better price than you want, with more manageable loans. Remember to choose the best and most genuine dealerships. Some dealerships may put excessive amounts in the price tag and also may deliver low-quality products. It’s better to choose the one near your residence area, or at least it should be in your state. Getting your car from your current state may simplify your paperwork and maintenance.
Confidence and knowledge
Confidence and knowledge of the product is key for any kind of negotiation. You need to know the type of car that suits you, its price and offers from the company. If you have good communication and negotiation skills, getting extra discounts and offers will be a manageable task. You need to display your confidence through your body language. The salesperson should feel dominated by your confidence and agree on a deal you want. Whether in a showroom for a new or used one and getting your car from a seasoned car dealership or a stranger online, you should negotiate with full confidence and plenty of big data on the product.
Buying a new car
If you have decided to get a new car, you are confident and can handle it. You need to test drive the car you chose first. If you are taking a test drive, you can also try other models. This will help you clear the last minutes of confusion and can prevent you from lifelong regret. As per your budget, you can choose to finance your purchase or pay the amount on the delivery. In both cases, your negotiation skills and confidence comes in very handy.
Finance or EMI
If you are financing your purchase or buying your car on EMI, be prepared and research correctly. There can be a car loan from the bank you take, or you may opt to pay with installments and down payment. Taking a car loan from a bank may be a better idea. If you took the loan already and still need to get your car, or there is a long delivery period, you might be in a problem. So it’s better to go for EMI, as it is managed by the car brand during the purchase and implied only after you get your car. Car brands may issue some offers, which would make your EMI easier. The least amount of down payment or no interest on the installments can be the offers from the car brand.
You should keep your interest rate in either of the payment methods. You need to choose the bank with the last and best interest rate on the car loan. The interest rate might be non-negotiable for most banks’ car loans, but you can negotiate it in most dealerships. Try to determine the least and most appropriate interest rate during the negotiation. This way, you can get a fair number.
Insurance and warranties
Car brands provide warranties on some of the major parts of the car, like the engine. The warranty is given based on kilometres or miles covered by the car. Some brands warranty a higher distance the car covers, but some may provide comparatively low. It’s better to choose a car with a higher distance warranty on the engine, like a warranty of up to 70,000 km covered by the engine or higher. Your car will only partially break down or rapidly downgrade its performance after the warranty period ends. These are just the numbers specified by the manufacturer. The performance and the life of your car depend on the reliability and quality of your car but, most importantly, how you maintain and drive it.
Insurance of your car is very important as it is prone to any kind of damage, especially in Canada’s landscapes and weather conditions. Insurance covers all the damage costs in case of any misfortune to your car but should not be intended by the owner. It also can be convenient in case of theft as it might cover half of the expenses for a new car.
Car brands offer you all sorts of insurance policies. You should come prepared for this and choose the best one for you. Remember to select the least costly and the ones which benefit you more, as you would have spent a huge amount already and it’s better to save a little. Dealerships may offer gap or credit insurance, saying it is mandatory. But it is only necessary if you are leasing the car. They would also try to convince you to an extended warranty. You can wait for all these extra warranties and insurance. So research and learn about all sorts of insurance and warranties and whether you need them.
Time of delivery
You need to conduct a whole-body inspection of the car. Any scratches, dents, unusual noise, malfunction of some parts, etc., should be properly examined. It should have covered at most a hundred miles or sixty kilometres if it is a new car.
A more detailed inspection is needed if you are getting an old car. You need to check for any accidents, malfunctions, or damages. The smoke from the exhaust pipe should be clear, indicating proper and timely vehicle maintenance.
Buying from a private seller
Buying a used car from a private seller can be easier than getting one from a dealership. They are more willing to negotiate as they want or need to sell their car for various reasons. But they would happily walk away if you didn’t pay the price. They are a fair one. As they need a target to fulfill on the sales record.
All the tricks and advice are similar and applied in this case as with the car dealerships. Do your research, request a vehicle history report, and start with your lowest offer. If you plan on buying from an independent seller instead of a dealer, here are some things to consider:
There is no financing
You have to pay the amount agreed in a lump sum. It’s impractical to finance your purchase while buying the car from a private seller. But if the seller is someone you know and trust, financing may be possible with the internal agreement of both parties.
Inspection of the vehicle
Whether the vehicle is new or old, it should be properly inspected. You can consult a mechanic or have a mechanic inspect the car. When you buy from an individual, you can’t guarantee similar quality to the dealerships.
Avoid scams
Private sellers can turn out to be frauds. Only provide vital or necessary information to them. Also, check whether the vehicle is stolen or owned by the same person who appears as the seller. Check the car’s VIN with your local Department of Motor Vehicles (DMV) to ensure there are no liens on the car and that it rightfully belongs to the seller.
Hence, getting a best car deal anywhere requires research, patience and a negotiation skill. Whether opting for a new or used car, thorough testing, understanding financing options, and securing insurance and warranties are imperative steps.
Good luck with your car hunt!!
