Buying a Used Car: How to Choose a Payment Option

When the time comes to buy a used car, there are many financial factors to consider. Perhaps your budget will narrow your used car choices, or you may not be aware of the payment options available. We are ready to show you some ways you can pay for your vehicle and to show you that the make and model you desire most may well be within your reach if you plan carefully.

Consider the Time Frame

As you consider payment options, one of the first factors you might want to think about is how long you will be paying for your car. Whether you secure a loan through the bank or choose in-house financing with us and depending on your credit, your loan could be as brief as two or three years or as long as five. It is important to understand the exact terms of the length of your loan before you sign off on a vehicle.

Give Yourself Time

Even if you find yourself needing a new vehicle for your commute to work or school, you should avoid jumping into a deal right away. Take the time to consider your options, as this may help you avoid hefty payments that might be hard to handle later on. For example, ask yourself whether your current car is a valid trade in or if you can secure a down payment that may help lower the cost of a vehicle.

Review Your Budget

One mistake many people make when they shop for used cars is to miscalculate how much they can afford to pay monthly. To avoid this error, you will need to factor more than just the car payment into your auto ownership budget. The cost of insurance, gas and other taxes and fees that will need to be paid when you purchase a vehicle should all be included in your budget to ensure you do not overextend it.

Buying a used car can be a challenge, especially if you are unsure of your payment options. However, being prepared and asking the right questions can help you get the car you want at an affordable payment.

Reasons You Should Buy a Used Car

The idea of a brand new car is exhilarating, but for most people, used cars are more budget friendly and just make more sense. If you aren’t convinced that a used vehicle is the right choice for you, then you need to keep reading. We’re going to show you why buying used can be the best decision you make.

More Options

Buying used gives you a range of great options. Because prices are more affordable, you are able to look at vehicles you may never thought you could afford. This includes luxury designs and larger vehicles, like SUVs and trucks. In addition, you can get a lot of features for your dollar. You have the opportunity to buy the vehicle you really want instead of having to settle for only a couple options you can afford. This really opens things up and allows you to look at a range of vehicles you might not have even considered an option.

Reliability

One of the best things about buying a used car is that they generally come with all the “kinks” worked out. This just means that any manufacturer issues have often already been caught and fixed by the time you get the car. So, you get a nice peace of mind.

More for Your Money

In the past, buying used was often a gamble because cars really had a set life time. You knew if the mileage was at a certain point that there was a certain amount of life left in the vehicle. That is not really true anymore. Cars last longer. So, buying a used one really isn’t sacrificing too much. You will likely get more than enough acceptable life out of any vehicle you buy.

Before you completely write off buying used cars, take a minute to think about the reasons you should buy one. Used vehicles aren’t at all the stereotypical broken down, worn out vehicles that may come to mind. They really are great cars that have a lot to offer.

Borrowing Money for a Car Could be the Right Move for You

Car loans can be scary prospects for someone that has never been in debt or owned a car. At NexGen Cars Canada we do our best to make first time car buyers feel at ease with the process, and our lenders are some of the best in Canada. We can cater the loan terms to fit your situation and help you get into the vehicle that you need for your daily commute or weekend jaunts into the wilderness.

Credit should not be an obstacle when it comes to shopping for the car that you need. Our trained professionals work as a team to provide you with the best experience and the best vehicle possible. Our salesmen will listen to your needs and match you with the right car, while our lenders will help you with a loan that will assuage any doubts you may have with regards to affording the vehicle. Count on us to work with you whether you have bad credit, mediocre credit, or a perfect score.

The loan process is one that has become common place at most dealerships across Canada. It allows one to get into a vehicle that isn’t immediately available to them because of price barriers, but that may be necessary for them to get and keep a job or to enjoy the great outdoors to the utmost. Borrowing money and responsibly paying off the debt is the best way to build one’s credit. We are proud to help people build their credit with car loans and to help people become more mobile in the vehicle and manner that best suits them.

Fear not the uncertainty of debt. Let the lenders and our friendly staff be the solace you need as a new borrower or car owner. Comfort in your financial and vehicular decisions can be assured when working with us as we work with you to build connections between the buyer and the road and the great country of Canada.

3 Reasons to Buy a Used Car

If you’ve ever turned on a TV — and chances are you have — you were probably inundated with commercials for shiny new cars for only a single paycheck per month! When your family is in the market for a new car, a used cars service could offer you something just as beautiful as what you see in on the new lot. That’s not the only benefit, either.

Used Cars Are Cheap

It might seem obvious, but used cars are cheaper, and it goes beyond a simple price tag. Perhaps you prefer luxury cars, but could never afford one right off the lot. For what you’d spend on a brand new Toyota, you might be able to find the luxury car of your dreams. Even if you prefer something family-friendly over a sports car, you could save up to 50 percent by purchasing something used.

It Might Be Safer

It seems like a different car recall is in the news every day. Purchasing a new car leaves you vulnerable to undiscovered mechanical issues. If you opt to buy one that is a few years old instead, it’s more likely that any problems were already discovered and fixed, leaving you with peace of mind.

You Don’t Have to Skip the Warranty

Many people worry they’ll end up purchasing a used car that doesn’t run for long, but most dealerships offer certified pre-owned cars. Certified used cars are usually slightly more expensive than traditional used cars, but the certification means the car was professionally inspected and, if it had any problems, was professionally repaired. Certified used cars come with a warranty that ensures you can drive the car for a set amount of years, at least.

If you’ve been trying to decide between purchasing a brand new vehicle or buying a used one, our used cars service could be just what you’re looking for. Whether you need something for the whole family or something to impress your friends on the weekends, we provide a range of vehicles for a wide variety of budgets.

Key Steps to Take When Purchasing a Used Car to Make Sure You Are Comfortable

If you are on the hunt for quality used cars in your area, there are some key steps to take to be sure the entire process goes well. We recommend taking these steps to ensure you get exactly what you want and spend the amount you want to in the end. The most important thing is guaranteeing the vehicle you buy is top quality. We want to make sure that happens for you, so here are the steps to remember in the process.

Consider All of the Details When It Comes to Finances

Our concern is not how much you spend, but that you spend a comfortable amount and receive the quality you deserve. This is why we recommend you figuring out your detailed budget beforehand. Calculate in everything, including the total payment of the car and any insurance that you need. Also, be sure to not make a car payment that is over 20 percent of your take-home income. This way, you will find yourself in a safe and secure ride and not in a financial hole.

Have an Inspection Done on the Car on Your Own

While all of our vehicles are thoroughly inspected and are in top condition for you before you even check them out, we recommend you taking it for an inspection on your own with someone you have history with and trust. Our goal is for you to feel like you can one hundred percent trust our vehicles and us. This is why you should take it to a mechanic you know and confirm the positive inspection results we will give you.

We are set on offering you used cars that are of the best quality around. All of our cars have been tested, driven, checked, inspected and have come out with clean results. We want you to be happy with your buy, so we recommend you take the steps above until you feel confident with the car you are considering.

How Buying from a Dealer Simplifies Your Life

Buying a used car from a dealer has a number of advantages of over getting a car from a private seller. For one thing, our reputation is on the line with every car we sell, which isn’t the case for an individual. Our business model is built on satisfying the customer, so that we get repeat business and positive word of mouth. This goodwill allows us to sell more used cars, which is our goal.

Another powerful advantage we have is convenience. Where else can you find a large selection of vehicles for sale than on a dealership lot? We carry everything from cars that are a year-old to vehicles that have been around a bit longer, giving you a variety of price points to choose from. We also offer a range of makes and models to test drive and kick the wheels a bit.

There’s a lot more, too. We offer financing packages that allow you to drive home the car of your dreams. We also are often able to provide lower interest rates than you might find on your own. Our cars have all been inspected by mechanics; they don’t go out on the lot until they have been cleaned and fixed of any mechanical issues. You won’t drive from our lot only to have the bumper fall off.

Finally, we handle all of the paperwork for your new set of wheels. We will set you up with registration and title so you don’t have to do the work yourself. When it comes to buying used cars, we are the place to go.

3 Tips for Buying a Used Car

If you’ve been researching purchasing a used car, odds are you’re not the only one. Statistics show that approximately forty-million used cars are bought, sold or traded every year. This only goes to show that there are a number of car options to choose from. Here are a few helpful tips to get you started.

Shop Within Your Budget
Before you go shopping for your used car, it’s a good idea to know what your budget will be. Have you been saving for a single payment? Will you be making payments in installments? Will you take out a loan? Experts say that a car payment shouldn’t be more than twenty-percent of what you bring home. Once you know your budget, your sales agent can help you find affordable options to fit your needs.

Make a List of Choices

Many people may have a favorite option when shopping for their used car, but often times there are other models that can fit the same criteria. It’s a good idea to sit down and go over what you want in a car and make a list of several that will work for you. If your local used cars dealership doesn’t have your first choice, they may have your second or third. It’s a good idea to keep an open mind when shopping so that you can see that great deal when it comes your way.

Know the Vehicle’s History

Many dealerships offer history reports on the cars they sell. This is a great tool for you to use when deciding which car to purchase. With a history report you can view the use history and in some cases repairs you might want to be aware of.

Keeping these tips in mind while you shop may make your shopping experience better. Select options with the ratings and price the best fit your needs, and don’t be afraid to ask about the car’s history. At NexGen Cars Canada we will be happy to help you find the vehicle right for you.

‘Don’t shop for the cheapest car’: tips on the smart way to buy used

Taking the vehicle for an independent inspection is recommended, says Car Help Canada consultant.

Sales of new vehicles may have hit a record high, surpassing the two-million mark for the first time last year, but the majority of consumers are still projected to buy used primarily for one key reason: cost savings.

DesRosiers Automotive Consultants forecasts that about 59 per cent of prospective buyers in Canada will purchase used vehicles this year.

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It’s been well established that new vehicles incur rapid depreciation as soon as they’re driven off the lot. Most new cars can lose up to 50 per cent of their value during the first four years of ownership.

That’s exactly why Esther Paulsen and her husband Tim bought second-hand when they were shopping around for a replacement vehicle last December for their growing family.

“Our decision to go new or used was dictated by budget,” said Paulsen, a teacher in Toronto. “We didn’t even look at new as I was coming off a maternity leave and we are basically single salary with two kids.”

But looking to save money buying second-hand shouldn’t preclude buyers from wanting to ensure their car is in top condition, cautions George Iny, president of the Automobile Protection Association.

‘More value for your dollar’

“Generally speaking, a three- or four-year-old used car coming off lease would offer more value for your dollar,” he said. “But I wouldn’t be a price junkie. Don’t shop for the cheapest car. That’s what most consumer advice tells you to do. It’s a mistake.”

Iny points to previous research conducted by the APA in the Greater Toronto market at a time when the popular Honda Fit was relatively new and in short supply. His organization found 25 used Fits for sale on auto classifieds site AutoTrader.ca.

“We then looked at the cheapest seven of them and there was a story with every single ad: curb-sider, accident reconstruction, sketchy maintenance, collisions. So you’d be better off looking for used vehicles that are higher priced and bringing an ad for one of the low-priced models that’s similar to negotiate with the seller.”

Finding a car in excellent condition will mean having it checked out, Iny added. “You have to see service records.”

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But if a seller can’t show you a car’s full history, copying down its vehicle identification number (VIN) to get a CarProof report can help identify previous accident claims and any outstanding liens, said Mohamed Bouchama, a consultant for Car Help Canada.

“You have to be very careful. You don’t want to buy somebody else’s problem,” he said, adding to make sure that if the vehicle has been subject to recall or repairs to check that the repairs have in fact been done.

Iny noted that CarProof reports aren’t infallible, though. “Information is often missing on collisions but the big stuff should show up in Ontario, and in B.C. it’s very reliable — 90-plus per cent reliable. In Quebec it’s unreliable,” he said.

Taking the vehicle for an independent inspection, especially if the vehicle is outside the warranty coverage, is also recommended, Bouchama said, “despite the fact that 50 per cent of buyers don’t do that.”

Buyers should also be extra cautious about any hidden issues if they’re purchasing a used vehicle from a private seller versus a dealership.

“If you buy from a dealer, you’re fully protected. If you had a problem and the dealer didn’t disclose it, then you have every right to go back to the dealership and there are laws that protect you from a dealer. When you buy privately you’re not protected at all,” Bouchama said.

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Other common burns prospective buyers should watch out for include sellers who mess with the mileage. “Believe it or not, these day it’s a lot easier to roll back the odometer,” said Bouchama.

Its something that can be determined by taking the VIN to a dealership and having them input it into their database to determine the last time the vehicle was serviced and what the mileage was, he added.

Even asking to see if a used car has snow tires can tell you a lot about its history, Iny added.

“That gives you an idea that the person wasn’t pinching pennies on their vehicle.”

Best Time to Buy a Car in Canada

Changing your car is something you will inevitably do multiple times during your life. The fact that you live in Canada, the second biggest country in the world and that Canadian cities tend to spread more horizontally than growing vertically, makes the point of having a car literally a “must.” So, you will ask yourself a lot of times: When is the best time to buy a car?

Changing your car is something you will inevitably do multiple times during your life. The fact that you live in Canada, the second biggest country in the world and that Canadian cities tend to spread more horizontally than growing vertically, makes the point of having a car literally a “must.” So, you will ask yourself a lot of times: When is the best time to buy a car?

And here is my fast response: it depends on your needs and your rush. That is why in the following article I’ve split the analysis in three: If you want to know the ideal month for new cars, the perfect moment for used cars and the third and last one: if you are in a rush.

Best Time to Buy a Car: September to December for New Cars

If your primary concern is price and you are looking for a new car, the best time span of the year is between September and December. And more precisely, the best moment is November.

The fact that new models are being delivered and parking lots need space, makes manufacturers offer incentives for previous year’s models with the intention of attracting customers to drive these away. Sometimes, you can find a few thousand on MSRP savings with incentives that are really worth.

Additionally, during February and March, usually a low sales season, new car prices also go down a little bit but never compared with the levels reached during the last quarter of the year.

Nissan Canada sometimes offers the Rogue during October-November with 4,000CAD savings incentives.

Anytime for Used Cars

A new car is the same anywhere: you go to dealer X, Y, and Z and they all have the 0 Km same vehicle. Wherever dealer you go, you will get the same exact “clone.” But used cars are different. Buying a used car is more a matter of opportunity than timing. Any time in the year you can find different used car offers as these aren’t globally managed by a massive market flow.

Looking for a Used Car: Don’t Rush If Possible

While I’ve talked about it on other articles, you need to remember that even with the same exact kilometers, same precise date of maintenance and being in similar weather conditions, vehicles depreciate in different.  Cars are used differently: bumps, driving habits, breaking hard, breaking slow, high speeds, low speeds… there are multiple factors that affect the actual condition of a vehicle. And all this can result in the fact that both “brother” cars have different costs.

If you are looking for a used car, don’t rush. The ideal time span you should use for exploring alternatives is 3 – 4 weeks of 10 hours a week of search. The fact that you have found a desirable offer doesn’t directly means that you should go with it. We have all been there and that “opportunity feeling” influences a lot on making a decision.

Propose Yourself at Least 10 Options on a Spreadsheet

One thing that helps a lot not to rush and be happy with whatever decision you make at the end is to put as many options as possible on the table. Yes, an actual “data table” or spreadsheet. If you propose yourself to get up to, let’s say, ten choices, then you can be sure that you will make an excellent final decision.

Take your time, don’t rush, and do a table with all available options before saying “Deal!”.

Urgency? Yes, sometimes it is urgent…

If your current car is broken, you have the “urgent need” of having a car, or you just some eventuality is rushing you, then I suggest you analyze the following before jumping into any decision. 

  • If your urgency is because of work, consider evaluating the monthly costs of a lease for a new car.
  • If it is because you need more space because of a new family member, work reasons or just upgrading for space, consider SUVs available under 500CAD/month.
  • If you are considering used vehicles, take at least two weeks of intensive search. The more time you take and the more options you see, the better decision you’ll make.
  • If your car is broken and you urgently need one, consider renting another one for a few days while you decide. 

The best choice will always depend on how clear your judgment was at the moment of closing your next car deal. Good luck!

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping people to better understand the complex market of new vehicles in Québec and Canada. You can connect with Jorge in LinkedIn or send him a direct message.

Article reference:
https://www.leasecosts.ca/en/articles/best-time-buy-car-canada

Why Canada’s used-car world is becoming a buyer’s market

Ian Bickis, The Canadian Press 
Published Sunday, October 21, 2018 10:22AM EDT 

TORONTO — The balance of power in the used car market is shifting towards shoppers as improved data and online offerings create more opportunities to push for the best price.

A fast-evolving online marketplace is providing more intelligence on the fair value of cars, said Cliff Banks, a Detroit-based auto retail expert.

“I don’t know that it can be any more transparent…they all provide intelligence on the pricing and the deal of the vehicle, whether it’s a good deal, a fair deal.”

Kijiji Canada recently announced it will add a standalone auto sales site that will roll out later this year to keep up with shifting expectations. The site will add reviews of dealers as well as market pricing information from Carproof.

“The key feature for us, and one of the biggest, the biggest win for us is what’s called price transparency or price analysis,” said Matt McKenzie, general manager at Kijiji Canada.

The online classified company, owned by eBay, already boasts of being the largest player in the Canadian market with about 500,000 vehicle listings. Autotrader, owned by Etobicoke-based Trader Corp., lists about 444,000 vehicles on its site while there are many other offerings on the market as well.

Listing companies are boosting their online presence as the used vehicle market is set for significant growth, said Dennis DesRosiers, president of DesRosiers Automotive Consultants.

“There’s tremendous opportunity, and that brings in all the different retail players and their approach of, how do I get a piece of that?”

While new vehicle sales are expected to be largely flat at about two million this year, the used vehicle market is set to add half a million more in sales in the next three to five years, on top of the three million that changed hands last year, said DesRosiers.

The rise in the used vehicle market comes as improved quality in the past decade means cars and trucks are lasting much longer, allowing for a potential lifespan of four to six owners from the two or three expected not long ago.

“It takes 23 years to remove the vehicles from the road now, a decade ago it only took about 12, so it’s essentially doubled,” said DesRosiers.

Used vehicles also offer margins that are two to three times higher than for new cars, adding to their appeal, he said.

The quality and information improvements have significantly changed the overall used retail market, said DesRosiers.

“It’s not that far long ago, call it 15 years ago or maybe 10 years ago, where the used car market was largely a culture of deceit…even if the online capacity was there, there was just so much riffraff in the used car market that it was very dangerous. A lot of that has changed.”

The improved access to data means used-car retailers have to be more transparent and competitive about their pricing, said Jamie Tekela, director of pre-owned operations at Pfaff Automotive Partners.

“You need to really justify what you’re asking, why you’re asking it, and you can’t go asking $500 more for the same Honda Civic with the same mileage. It just it doesn’t work any more.”

“It’s night and day, to be perfectly honest. It’s gotten a lot more customer friendly,” he said.

The improved information on crash reports, comparable sales, and other metrics hasn’t done away with potential negotiations but does give more justification, said Jamie.

“There’s always going to be negotiations when trying to buy and sell vehicles, but with so much information available to each and every one of us, it’s a lot easier to explain our rhyme and reason why we’re asking what for a car.”