Car Shopping? Do Your Homework.
It’s always exciting shopping for a new car, even if it’s just new to me and not really brand new. This is one shopping trip that also gives me a little stress; it’s a big purchase and making sure I stay on budget and get the safety and features I’m after can be overwhelming. A little research goes a long way, here’s what I’ve learned…
New Car vs. Used Car
The lure of something new and shiny is hard to resist especially with all the bells and whistles new cars come with these days, but there are pros and cons to consider.
The pros…
- New car warranties are better than ever and this could mean little to no additional expenses in the first few years of ownership.
- Financing rates are attractive. You can find many dealerships offering rates as low as 0% or slightly higher, if you’ve done your research this could be a smart option for you – more on that later.
- Consider the safety of a new car. Not only is there less chance of breakdown, new cars are loaded with standard safety features that older models may not have; rear sensors or cameras, hands-free features, and more.
The cons…
- Don’t think of your new car as an investment, it depreciates considerably the moment you drive it off the lot. If you think you might be changing cars fairly regularly but still want a new car, consider the option of leasing.
- You will pay more for a new car. Not just because it’s new, but also because there are other expenses. In Alberta and Ontario dealers are required to advertise ‘all-in’ pricing, meaning that everything must be in the advertised price except for the tax. Be aware that this price includes, freight, PDI (pre-delivery inspection fees), administrative fees, levies and possibly more. These are costs you may not incur if you are buying a used vehicle, especially from a private seller.
Do your research
Once you’ve decided on new or used, do the research ahead of time to see the makes and models that have the best ratings and reviews. Check out consumer forums and sites like the Automobile Protection Associations Lemon-aid Car Buyers Guide or Car Help Canada. These sites are funded primarily through membership and as a result offer fair and unbiased reviews of vehicles and their makers.
Other things to consider?
- Know your budget before you start looking around, don’t let your wants determine it for you.
- Get pre-approved before you start shopping whether you are buying new or used. Having the financing ready to go lets you capitalize on a good deal as soon as you find it and it also gives you some leverage when working with a dealership – do the math on 0% financing vs. cash incentives from the dealer. Your banks higher interest rate, may still be a better deal in the long run if the discounts are significant enough.
- Call your insurance broker. If you’ve got your eye on a particular vehicle, talk to your broker about coverage and the cost of insuring that make or model before signing on the dotted line. This could weigh heavily into your purchasing decision. Need a quote? We can help.
Want to know more? Review these sources and resources.
Trillium Auto Dealers Association (Ontario)
Ontario Vehicle Sales Regulator
Alberta Motor Vehicle Industry Council – All-In Pricing is the Law
Government of Canada – Office of Consumer Affairs
Alberta Ministry of Transportation – Buying a Used Vehicle in Alberta
Have More Questions?
Let me know and I’ll do my best to address it here for you and all of our readers. Better yet, contact an InsureMy advisor; these guys know their stuff. Email Info@InsureMy.ca or give them a call locally at (403) 410-1896 or toll free at 1-844-410-1896.
Everyday Insurance With Allie
Working mom, lover of the great outdoors and self-professed know-it-all. Our resident blogger, Allie isn’t the insurance guru she claims to be – but she’s learning and we are happy to help guide her. All the while keeping you in the loop on the “insurancey” stuff you need to know. #AskAllie
