Car shopping can be stressful especially when you’re restricted by a budget and other more important financial obligations. In order to get the most out of a car loan, you need to be able to strike the right balance between what you want and what you can afford to pay off. Here are some tips to guide you in the process.
Evaluate Your Needs
Your car is one of the most expensive personal assets that you will ever own. Don’t let thrill of owning an expensive one cloud your judgment. Remember to ask yourself what you need prior to what you want. Why do you want to own a car in the first place? What functionalities matter to you and why? You will be driving the car that you’d end up choosing for at least 5 years so make sure that it complements essential aspects for your lifestyle. The following questions can help you choose a car that can accommodate all, if not most, of your needs:
- 1. How many persons do you usually hang out with?
- 2. What is the usual road conditions of your daily route?
- 3. What is the nature of your job?
- 4. Is a 4-wheel drive car necessary?
- 5. Do you want a fuel efficient vehicle?
- 6. Are you usually carrying heavy cargo?
- 7. How big is the parking space at home?
Set A Price Limit
Setting a budget is harder than one might think. Having a stable job would open more options for you. However, if you are still juggling other existing loans such as house mortgage, then it’s best to set your budget at a relatively lower range. Experts recommend to place a down payment that amounts to at least 20 percent of the purchase price of the car that you’re buying. A car loses 20 percent of its market value as soon as you drive them off the dealer’s lot. Placing the same amount of down payment would therefore protect your loan from gaining negative equity in the long run.
Consider Opting For A Used Car
If you already have your heart set on a certain brand or type of vehicle but you’re on a tight budget, you may want to consider purchasing a certified pre-owned car. CPO cars are safe because they are guaranteed to have undergone rigorous inspection and refurbishment by their manufacturer or by other certifying authorities. There are even well-known car making companies that sell certified pre-owned vehicles such as Mercedes-Benz and Mazda.
Weigh Other Costs
A cheap purchase price doesn’t automatically translate to cheap maintenance costs. Before settling for a specific car, take the time to think about the availability of its parts in your area, its fuel consumption, and other simple things that most people tend to overlook. Look for online reviews on the car that you are considering to buy to avoid making the same mistakes.
Always Do A Test Run
Car buying is not just about numbers and specs. Most of it is actually all about personal comfort. Regardless of whether you are buying a brand new or a used car, always ask your dealer for a test drive before setting up any payment. When doing so, test the car on road terrains that are part of your daily route. Assess the overall comfort of the vehicle as you maneuver it down the road. You should also check its accessories and features such as the stereo, power windows, air conditioning and the like. This will be your car for years to come so make sure that you are satisfied with it.
Work With A Reliable Auto Loan Provider
Find an auto loan provider that understands your needs and are willing to provide you options in order to meet them. Consider working with New Car Canada. We offer guaranteed car financing even to those who have less than perfect credit. All you need to do is fill out or FREE online application form and we can get you approved in less than 24 hours. Our requirements are very simple, you don’t even have to bring a down payment in order to get approved. Apply now and enjoy our amazing deals.
We provide free service in 8 provinces, Ontario, Nova Scotia, New Brunswick, PEI, New Foundland, Manitoba, Saskatchewan, and British Columbia. We service everyone from Toronto, Ottawa, London, Hamilton, Mississauga, North Bay, Thunder Bay, Sudbury, Sault Ste. Marie, Barrie, Oshawa, Brampton, Kitchener, St. Catharine’s, Niagara Falls, Belleville, Windsor, Bracebridge, Gravenhurst, Collingwood, Orillia, Peterborough, Nepean, Cornwall, Kingston, St. Johns, Saint. John, Moncton, Winnipeg, Brandon, Red Deer, Calgary, Edmonton, Saskatoon, Regina, Kamloops, Victoria, Surrey, Kelowna, Vernon, Prince George, Nanaimo, Fort McMurray, Banff, Moose Jaw, Prince Albert, Swift Current and the rest of Canada. Our dealer network is one of the largest in Canada and always provides free finance to own quotes.