Purchasing a brand-new vehicle to call your own is an exciting moment in anybody’s life! Whether it is your first vehicle or one of many, getting behind the wheel of your new car is always a great feeling. However, before that exciting feeling sets in comes some confusion. Purchasing a new car is not always an easy task. How do you know you are making the right choices for you and your family? Unfortunately, many people tend to make mistakes when purchasing a new vehicle. Luckily with the help of isure, you don’t have to worry! Here is our list of top tips when it comes to purchasing a new car.
1. Budget for your new car properly
Proper budgeting is a crucial step when it comes to purchasing a new vehicle. It is important to first figure out what you can afford, as many people can’t confidently confirm what their new car is actually costing them. Additionally, making sure you are content with what you get for your money is important. Your first step in financing or outright purchasing a new vehicle should be getting pre-approved for your car loan. This will be the quickest and easiest way of figuring out what your true budget is, making the shopping much more simple. The last thing you want is to spend weeks researching and shopping only to find out you get rejected in the finance office.
To down payment or not to down payment
Another decision to make is whether or not you will be putting a large down payment. This is typically between 10-20% of the vehicle’s total price. The more you put down, the less you need to finance before you completely own the vehicle in your name. By making a down payment, you often pay much less in interest fees and get approval quicker and easier. The larger your down payment, the more you can take advantage of such benefits. If a down payment isn’t a good option for you, consider getting a co-signer or boost your credit score before applying.
When budgeting, remember to consider things such as taxes, car insurance, and other factors, such as registration fees. It is also important to make sure you look into how much the car will cost you after purchasing. What is the fuel economy like? How about the depreciation? The average depreciation rate for a new car in Canada is roughly 20%, with this increasing by 15-20% each year. By using this information, you can purchase a car that is two to three years old resulting in savings of up to 30%.
2. Should you buy new or used?
Generally, people will decide whether or not they will buy new or used depending on their budget. However, it doesn’t always have to be this way. Many used vehicles in great condition can be purchased and still scratch that new car itch. There are many things to consider when making this decision, such as the warranties that come with new cars, as well as the depreciation.
When purchasing a new vehicle, it loses much of its value when you drive it off the lot after purchasing. However, newer model cars come with a plethora of safety features that can make your family feel safer, as well as save you money on your insurance premiums. Used cars can be a great way to purchase a new vehicle on a budget. However, if you want that new car smell, go for it if you’re able. Having a hard time deciding? Check out our article on the comparisons of new and used vehicles.
3. Do your research
This can arguably be the most enjoyable part of purchasing your new car. It is time to find what will work for you and your lifestyle! Generally, a few quick Google searches is where people will begin. Take into consideration what the car will be used for. Is it just you using the car? Do you have a family to carry along in it? The type of car you choose is entirely up to you, but will vary based on your needs.
When doing your research, it is important to consider manufacturer incentives. Many car manufacturers offer incentives that aren’t public information or advertised. Some examples of these include cash rebates, lower financing and leasing rates. Make sure you research which manufacturers have the best incentives before making your final decision, and don’t be afraid to ask questions while browsing.
4. Test drive your new car before buying
Making sure you test out the vehicle beforehand is crucial when making any car purchases. If you are buying used, it is a good practice to inspect the car for any noticeable defects or markings that could potentially affect the price. The last thing you want is to be uncomfortable driving your new car. Some things to look for when test driving a vehicle are:
- Ride comfort/smoothness
- Comfortability
- Acceleration
- Braking
- Steering and handling
- Noise/quietness
- Visibility
- Car safety features (park assist, blind spot assist, etc.)
5. Insurance and your new car
Proper insurance coverage that suits your needs/wants with your new vehicle is a must. Remember to explore your options and always make sure that you have the right policy for what you will be using your vehicle for. On top of this, it is important to decipher who in your family will be using your vehicle in order to figure out what you should be paying. Remember to take into consideration the common factors that determine your car insurance, such as the make, model and mileage on the vehicle, if purchasing used.
So, are you ready to purchase your new car?
Purchasing a new car can be daunting at first, but it doesn’t have to be. Finding the right insurance for your new vehicle is just as important! If you are in the market for a new car insurance policy for that new vehicle you’re purchasing, why not give isure a call? We aim to get you the best rates in the province, as well as provide customer service you can always count on. Contact us or request a quote today so we can help you make that new vehicle dream come true.
