Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Buying your first car can be as exciting as it is daunting. Although the freedom that a vehicle affords you is invaluable, it’s not a purchase that you should take lightly.
Used and new auto prices are still high throughout Canada, according to reports from CTV News and AutoTrader.ca. This means that you’ll need to look a bit harder to find a good deal.
If you know what to look for, deals can still be found. However, if you’re uninformed, you can just as easily get ripped off.
Whether you’re buying a car off the lot from a dealership or purchasing a car in a private sale, there are a few basic tips that you should always keep in mind:
Below, I’ll go over these key points and share some other practical tips for first-time car buyers on a budget so that you can find the best deal.
1. Research price ranges for the vehicle you want
If you’re shopping for your first car, you likely already have a few different vehicles in mind. Before you visit the dealership or look at local private sales, I recommend visiting Kelley Blue Book’s website to do some initial price research.
Simply enter the car’s year, make, and model, and the website will show you the average price range that you should expect to pay for it. This is great information to have while you’re shopping, as it will help you determine whether or not you’re getting a good deal.
2. Look for minor imperfections in the vehicle
One of the best ways to convince a seller or auto salesperson to come down on the price of a vehicle is to point out small imperfections. Look for imperfections, such as:
None of these affect the overall performance of the car, but they’re a useful negotiation tool that can convince the seller to reduce the price a bit.
3. Shop towards the end of the year (closeout sales)
Have you ever realized how dealerships run the best sales during the holidays? That’s because major dealerships are trying to liquidate the previous year’s inventory to make room for the latest models arriving in January.
If you plan on buying a new or certified pre-owned vehicle from a dealership, the holidays are the best time to shop. Private sellers may also come down on their prices, as they might be looking for quick cash so they can buy gifts for their friends and family.
4. Don’t be afraid to negotiate the price
Remember - salespeople are not your friends and family. Don’t let their golden smiles and friendly compliments sway you into buying a car that you wouldn’t purchase otherwise.
The best way to save money on your first car is to negotiate the price down. This works better with private sellers than at dealerships. However, most dealers are also willing to negotiate (although you may have to speak directly to a sales manager to get the deal).
5. Ask for service records and car history reports
Saving money upfront doesn’t mean much if the vehicle breaks down on you a few months later. That’s why you should always ask the seller or dealership for the car’s service records. In particular, you’ll want to ensure that the oil was changed regularly.
This can also show you whether or not the vehicle has had major work performed on the engine block, transmission, or cooling system. Recent work is usually a good sign, as it shows that major issues were taken care of, so you don’t have to worry about them.
A car will also have a history of any accidents that it has been in that have had any insurance claims, so see if the owner of the vehicle has access to those records. If they don’t have one, you can buy a report from a third-party provider.
If the vehicle has been in an accident, this can be a good negotiation tool for you to bring the price down.
6. Inspect and drive the car with a mechanic
Even if the car is sold with impeccable service records, you should still get a mechanic’s input. If you have a friend or family member who’s a mechanic, ask them to come along with you to the car lot to do a brief once-over and accompany you on the test drive.
The mechanic’s trained eyes and ears should be able to identify any major issues before you hand over your money.
Many shops are also willing to perform a pre-purchase vehicle inspection for a small fee as well.
7. Negotiate your interest rates
Dealerships often entice first-time buyers by offering them deals and clever perks, such as:
If you’re only focused on the upsides of the deal, it can be easy to overlook the fact that your interest rate may not be the best. Interest rates can mean the difference between thousands of dollars over the course of your loan. Not everyone knows that it is something that you can negotiate with a dealership, so try your best to haggle it down.
If you want to find the best deal on your first car, I recommend shopping around a bit. Don’t buy a car on an impulse or let a salesperson pressure you into buying on the spot. Look at multiple options, weigh the pros and cons of each, and make an informed decision based on your budget and needs.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.
Do you have a question, tip or story idea about personal finance? Please email us at dotcom@bellmedia.ca.
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Whether passionate about Poirot or hungry for Holmes, Winnipeg mystery obsessives have had a local haunt for over 30 years in which to search out their latest page-turners.
Eighty-two-year-old Susan Neufeldt and 90-year-old Ulrich Richter are no spring chickens, but their love blossomed over the weekend with their wedding at Pine View Manor just outside of Rosthern.
Alberta Ballet's double-bill production of 'Der Wolf' and 'The Rite of Spring' marks not only its final show of the season, but the last production for twin sisters Alexandra and Jennifer Gibson.
A mother goose and her goslings caused a bit of a traffic jam on a busy stretch of the Trans-Canada Highway near Vancouver Saturday.
A British Columbia mayor has been censured by city council – stripping him of his travel and lobbying budgets and removing him from city committees – for allegedly distributing a book that questions the history of Indigenous residential schools in Canada.
Three men in Quebec from the same family have fathered more than 600 children.
A group of SaskPower workers recently received special recognition at the legislature – for their efforts in repairing one of Saskatchewan's largest power plants after it was knocked offline for months following a serious flood last summer.
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.