1.6 million new motor vehicles were registered in Canada in 2021. If you’re planning on buying a vehicle soon, you’ll be in good company.
While you might be interested in purchasing a vehicle, you may quickly discover that auto buying can be pretty daunting. You’ll need to think about a lot of different things when making a purchase to ensure that you’ll be happy with your decision.
In this car buying guide for beginners, we’ll tell you everything you need to know to buy a vehicle.
Know What Your Needs Are
If you want to buy a car, you need to make sure that you consider your needs first.
Think about your purpose for the vehicle and ensure that the car that you choose will offer the functionality that matters the most to you. If you plan on using the car to go to work or school your needs might be different than if you just need it for recreational purposes.
You might also want to carefully consider the weather in your area and the driving conditions and terrain.
Choose a Vehicle Type
There are many types of cars to buy and many models of vehicles to choose from. You’ll want to consider all of them carefully while also keeping your needs in mind as well.
If you need to haul items regularly or if you have work needs, you might want to choose a pickup truck. On the other hand, if you have a lot of kids to carry in your vehicle, you might want to opt for a minivan instead. You might also want to consider an SUV if you want to carry a good number of passengers but need a bit more ruggedness as well.
Additionally, think about environmental friendliness as well. If going green is important to you, you might want to opt for an electric vehicle or a small car with great gas mileage.
Decide Between New and Used
When considering the type of car that you want, you’ll need to choose between used vs new cars.
There are benefits to both options. With a used car, you’ll be able to pay a lot less upfront than when buying a new car. However, you may need to make more repairs to it sooner and it might not last as long.
A new car, however, can be very expensive. Not only that, but its value can depreciate as soon as you drive it off of the lot and continue to depreciate more over the first year.
Be sure to consider both options’ pros and cons. Carefully choose between new and used when buying a vehicle.
Prepare the Essentials
To get yourself ready to buy a vehicle, there are some things that you’ll need to prepare.
First of all, be sure that you’ve budgeted for the vehicle and have enough money to pay for it if you’ll be buying it outright. If you plan on getting financing, however, then you’ll want to save up enough for a down payment instead.
Saving up for a down payment will allow you to borrow less money overall. The higher your down payment is, the smaller your car payments will be. You’ll usually need to have at least $500 for a down payment but it can be a good idea to save up $1,000 or more.
In addition to this, you’ll also want to make sure that you know what your credit score is as well. If you want to get a car loan at a good interest rate, you’ll usually want to have a credit score of at least 660 beforehand.
Do Your Due Diligence
Before you buy a vehicle, you’ll want to do your due diligence and ensure you know what you’re getting into. Particularly when buying a used car, check it out thoroughly and ensure that it’s in great working condition and unlikely to cause trouble for you later on.
It’s a good idea to get a mechanic to inspect the vehicle for you to ensure that you’ll be unlikely to experience issues. While it may cost you several hundred dollars, this inspection can be well worth it.
On top of this, you should also make sure to read over the contract with a fine-tooth comb. Be wary of car dealers who try to cheat you or add extra charges or terms they aren’t open about.
If there’s anything that you’re not sure about on the contract, you’ll want to get a friend or someone with legal expertise to look over it with you.
Find Vehicle Financing
If you won’t be buying a vehicle with cash, you’ll need to think carefully about the financing options that are available to you.
You’ll want to explore your options and try to find a solid lender that can help you get the amount you need for the vehicle you want. It’s a good idea to start looking for loans and get pre-approved before you start looking for a car.
As mentioned above, you need to make sure that you have a good credit score before applying if you want to get the best loan terms and have a good chance of being approved. However, if you have bad credit, there are still options available. Some lenders will work with individuals that have bad credit.
You’ll want to consider your budget and all of your financing options carefully when making the decision to buy a vehicle.
Following the Tips in This Car Buying Guide
While buying a vehicle can add a lot of convenience to your life, finding the perfect option can be difficult. You’ll need to consider all of the information in this car buying guide carefully and ensure you know what to expect from the buying process.
Make sure to do plenty of research, carefully review the car’s condition and the contract, and explore your financing options before you make a purchase.
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