The mere thought of buying a car can be both exciting and panic-inducing. One of the best ways to reduce stress through the process is to gather as much information as possible so you have a clear idea of what you want — and don’t want. But what pieces are going to help with making the process less stressful?
Table of Contents
- Create a list of your wants and needs
- Preparing your car for a trade
- Negotiating tips for used cars
- Important steps before driving off the lot
Create a list of your wants and needs
Scouring vehicle listings without figuring out what you need is enough to make your head spin. That’s why it’s important to determine what you actually want and need from your car. Ask yourself these five questions to help you figure it out.
What kind of a car do you want?
It seems simple, but before you consider buying a car, you should determine what you’ll need the car for. For example, are you using it to get to work and run errands or are you planning to use it frequently for longer drives? Having a clear idea of how you want to use your wheels will help you narrow in on what kind of car you want.
Another important deciding factor is budget. If you start car shopping without knowing a range for your budget, you could end up in a financially sticky situation. To avoid the headache, do the math to see what you can afford. You’ll also want to take into consideration finances beyond the car itself, like insurance, gas, parking, maintenance, and repairs.
Do you want to buy new or used?
Many buyers consider new models because there is no previous damage or wear-and-tear to worry about. This helps reassure you that you’re most likely investing in something that will provide years of reliable use. On the other hand, a used car can offer better value with lower monthly payments and lower insurance rates. Buying used can also help you avoid many of the additional fees attached to new cars, like freight and extra taxes (depending on where you live).
Consider these pros and cons, as well as the others listed here.
What kind of insurance coverage will you need?
There are two categories of coverages in your insurance policy: mandatory and optional. What are considered mandatory and optional features, however, can differ wildly from province to province, so be sure to check with your provider so you know what you’re working with. You can also check out this article to get a little ‘101’ and learn more about insuring your wheels.
Trading in your car? Get it ready to roll
Once you decide to trade in your car, what comes next? A little preparation can help to maximize your trade-in amount and eliminate any potential remorse. Check out these tips to help make sure it’s good to go.
Find your vehicle’s value
CARFAX Canada has a free and easy-to-use online car valuation tool that can help determine what your vehicle is worth. It takes into account your car’s features, model year, and other details that affect the value of your vehicle.
Something else you can consider is getting a Vehicle History Report. Not only does it give you the history of the vehicle, but it also comes with a History-Based Value report. This will take the information from the vehicle history report and other factors to give you a precise value that your vehicle can trade-in for, as well as if you decided to maybe sell privately.
Consider what you may owe on your lease or loan
You can trade in your car even if you have a loan on your car or are still in a lease, but it will make a difference to your bottom line. Any money you still owe on a loan or lease must be paid off before a dealership can take possession of the car. That said, many dealerships, especially those selling new cars, will be more than happy to help get you out of a lease or loan to put you in a vehicle from their inventory. A dealership will often take the amount you still owe on your current car and add it to the loan or lease so you can get behind the wheel of your next car.
Deal with repairs, if needed
Getting an inspection to reveal any needed repairs – and how much it would cost to do them – is a good idea. You may have some higher-cost suggested maintenance that pops up in this inspection, so be sure you know what needs to be done and the price before you make the decision on whether you’re repairing or not. A thorough dealer examination would likely reveal the same issues, and this way you’ll be prepared to negotiate if their offer is below expectations.
Clean the car
A good wash and coat of wax – even the quick spray-on type – will help your car’s exterior look its best. You could also invest in a professional detail cleaning to let them take care of it for you so it’s sparkling inside and out. A clean, detailed vehicle will win favour with a dealer and could yield a higher trade-in offer.
Negotiating tips for buying used
Working out a lower price for a used car isn’t as scary as it seems. Going in with a clear head and the research you’ve done is half of the battle. Keep in mind that there isn’t a set amount you can negotiate a used car for. Each used vehicle is different in one way or another, and the price will be a direct result of that. There are many factors that can influence the price, here are a few tips to consider.
Do your research
The first step in making sure you get a great car at a fair price is to understand how much it’s worth. Start with finding out what similar vehicles have sold for in your area so you can make an informed decision on the vehicle you’re interested in – the next step can help with this!
Get the CARFAX Canada history report
Get the VIN from the seller in order to run a CARFAX Canada Vehicle History Report on the car you’re interested in. The report will provide important information about the car such as accident history, outstanding liens, odometer reading, and service records. It will also give you insight into the registration and branding history. This critical information can be used as leverage in the negotiation phase.
On top of that, when you buy a history report, you also get a free History-Based Value. As mentioned previously, it provides information that could change the price and gives you a value that can help you negotiate even further!
Ask tough questions
If the CARFAX Canada history report does reveal that the vehicle has been damaged, check to make sure the vehicle has been properly repaired. Ask to see if this incident has impacted the vehicle in any other way. The same goes with any issues that are discovered during the pre-purchase inspection, as well as any visible damage or flaws – don’t be afraid to bring it up! These things could influence the price of the vehicle and give you more room for negotiation.
Don’t rush the decision
If the seller makes a counter-offer and you’d like to think about it, that’s OK. Let the seller know – buying a car is a big decision and not one you want to rush into. If the seller has other potential buyers, then know that you could lose out on the car if you wait.
Read more tips on how to negotiate the price of your vehicle.
3 important things to do before driving off the lot
Before you get wrapped up in the excitement of buying a car, you’ll want to make sure a few things are in check before you get behind the wheel.
Perform a proper test drive
This one is especially important if you’re buying a used car. A 30-minute test drive should give you enough time to evaluate how the car will run in a realistic setting. Plan a familiar route and test actions you would typically do — hit the brakes, put it in park, take a corner, accelerate, merge, and change lanes. Get a feel for the car’s accessories and ensure they work properly. Want more tips on how to perform the proper test drive? Check out this article.
Get a pre-purchase inspection
Regardless the type of car you purchase, if you’re buying it used, it’s extremely important to get a pre-purchase inspection. Not only will it help you determine the cosmetic, mechanical and safety condition of a car, it can also help pinpoint any existing problems, as well as highlight potential future issues. This information is critical and can help provide negotiation leverage.
Make sure your financing is in check
The last thing you want to have happen after buying a car is to realize you can’t afford it. To smooth out the buying process, ensure that you have the means for your new purchase and if you do require some financial help, apply for loan preapproval with your bank so there are no surprises.
At the end of the day, purchasing a car can be enjoyable if you arm yourself with the information you need before you start looking. As long as you’re prepared, you can eliminate a lot of the stress that comes with buying and drive away a winner.