3 Things To Consider When Buying a Car (New Or Used) In a Tough Economy

Beyond the price of the car itself, there is 3 things to seriously consider when buying a car:

  • financing
  • trade-in
  • long term fuel consumption.

All Canadians worries about making a large purchase. We are now getting in a period of the year which is a great time to purchase new or used car. From Vancouver to halifax, auto dealers all over the country have thousands of cars on their car lots. Before driving between local auto dealers, make sure to do a little research. Verify with you bank how much auto financing you can obtain. How the car dealers will determine the trade in value. Get familiar with the size and fuel efficiency of the new or used cars you’re considering.

Obtaining Financing From Auto Dealers

Very few people can purchase new cars outright. Most purchasers need some form of financing assistance. Car dealers understand this. They have financial departments in house to help with the loan terms. Not all dealerships will require that you have pristine credit in order to obtain a loan. Even if your credit score has a few dings, check with the dealership’s financing department. Many auto dealers have funds available.

If you are unable to get an auto loan, don’t be hesitant to look at used cars. There are some fantastic used car deals if you look in the right places! Used cars are always less expensive obviously. It is possible to find nearly new cars with low mileage at a used car price. If you’re looking at used cars, you will be able to apply for a smaller loan.

How Car Dealers Determine Trade In Values

If you don’t want to deal with the hassle of selling it yourself, consider trading it in. Car dealers take these trade-in cars. They will clean them up, and sell them as used cars or sell them at auction.

You can usually get a rough idea of a trade in value by using the Canadian Black Book. Be careful, the actual value may vary depending on many factors. The auto dealers assessors will determine the condition of your car and how they think it will sell. Car dealers acccept this trade in value as a down payment. It will reduce the overall cost of your new or used car.

Size Vs Fuel Efficiency Of New And Used Cars

When looking for a new or used car from auto dealers, size and fuel efficiency are important factors. Although the price of gas can fluctuate greatly, it’s a good idea to find a balance of the car’s size and its fuel efficiency. As you know, the larger the car, the more gas it needs. Just remember that when you are shopping:  the bigger, the more you’ll have to spend to drive your car.

If you’re planning on driving a lot or have a long commute, a smaller, fuel efficient car might be a smarter choice. While new hybrid cars are popular, it is possible to find some traditional used car that are almost as fuel efficient as a more expensive hybrid.

In summary, before deciding on a purchase, consider

  • whether or not you need help with financing,
  • the trade in value of your old car
  • the size and fuel efficiency of your new or used car.
Author is a freelance copywriter.