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Canadian New Car Buyers Checklist
How to buy a new car at a great price with total confidence
Buying a new car is a big decision, but if you follow this simple step-by-step procedure, you should be able to accomplish this feat with total confidence and drive home with total peace-of-mind.
The average person will buy 10-12 cars in their lifetime. Preparing yourself and doing your homework is the key to being able to make the tough decisions with total confidence. Buying the right car at a fair price does have its challenges, but here are some helpful tips and things to be aware of, to help you make the process as enjoyable and stress-free as possible.
Do your homework to establish your short list
Research new cars; view different models on line and familiarize yourself with what is available. In doing so, you may discover a particular model that you may not have known about.
Don't narrow your vehicle selections down to one car, just yet. If you become set on buying one particular car, you may lose a lot of potential negotiating power. This way, if you can't get a good deal on one car, you can get it on another.
How much can you save?
When you are well informed about all of the factors that can effect your new car price, the savings can be quite significant.
Glenn S. from Calgary, Alberta saved over $3,000 on a Cadillac SRX: "The information you provided was invaluable in the purchase of our new vehicle"
What’s the real price and what incentives are available?
Price shopping between vehicles based the MSRP (Manufacturers suggested retail price) can be a very expensive mistake. Always obtain the dealer invoice cost for the makes and models on your short list. In addition to the dealer invoice cost, all rebates, non-advertised factory to dealer and factory to consumer cash incentives as well as all subsidized finance and lease rate programs are listed at Car Cost Canada.
Most manufacturers offer special low interest financing programs. These subsidized programs are very costly to the manufacturers. Therefore, quite often, they will offer a cash incentive to buyers who do not take advantage of their low rate financing. Explore your financing options outside the dealership realm, such as your bank or through a credit union. Note that although the dealer may offer a lower rate, arranging financing yourself may qualify you for a cash incentive that you wouldn't otherwise qualify for.
Choose to buy or lease
Leasing a vehicle was originally an option exclusively for the business owner. Over time it has become a way for anybody to drive a better car that might otherwise be unaffordable. If you regularly trade your car in every few years, or prefer the security of driving a new car every three or four years, you may want to consider a lease. Leasing allows you lower monthly payments compared to financing a new car purchase, which in turn will allow you to get the vehicle you may need or want, which would otherwise be out of your budget. If you plan to drive your car for a long time, leasing may not be for you.
Michael D. of Kitchener, Ontario saved over $1,800 on a 2005 Toyota Sienna: "This is in my opinion the easiest and most convenient method to purchase an automobile. No hassles, no pressure, stress free."
Options - Think safety
Decide ahead of time, which features you want in your new car. Be aware that not every model has every feature you may be looking for. You may have to compromise by settling with one less feature or spending more and choosing the next model up. Consider safety options as your best bet: antilock brakes, traction control, side air bags etc. You may be offered a larger engine, but nine out of ten new cars perform just fine with the base engine - and you'll save on fuel in the long run as well.
While extras like rust proofing, extended warranties and other assorted services, may be valuable, it may be more economical to purchase them outside of the dealership. If you are interested in any of these extras, you may want to do some comparison-shopping first
Take a good long test drive
Test-drive all of the vehicles on your short list. There is no better way for you to determine whether you will feel comfortable with a car than to take it for a test drive.
Go out for as long as the salesperson will allow - ideally, a minimum of 30 minutes. Some dealerships may have insurance restrictions and therefore will only allow you to go on a test drive with a sales representative. Ask to drive it yourself if possible.
Take a friend and or the kids along. Take the highway. Try to park. Move the seats. Work the switches. Load some cargo. In no time, the car's strengths and faults will become clear, helping you with the decision.
Negotiate from the driver's seat at home
"Dicker up" from the dealer invoice price rather than down from the MSRP. Obtain the dealer cost of the vehicle you are interested in and you'll be in the driver's seat while negotiating at home.
Negotiate on the vehicle price itself, not the monthly installments. Dealers will often ask you what you can afford to pay monthly. Be honest with yourself and the sales representative, regarding what payment level you can truly afford. This saves both parties from wasting time working on a vehicle that doesn't fit into your budget.
If you can't stand this part of the car buying experience, there is help and it's cheap. By becoming a subscriber at CarCostCanada, you will also benefit from the feedback from thousands of recent Canadian new car buyers. With the impact in the market that CarCostCanada has, they have been able to identify a large number of low-priced dealers in many parts of the country that have committed to offer excellent members-only prices to CarCostCanada subscribers. If they don’t have a specific dealer they’ll let you know what their subscribers have been able to negotiate on their own for the model you are interested in within your area. It doesn't get any easier than this. The aggravation of buying a new car is virtually eliminated.
Percy P. - Toronto, Ontario - Toyota Echo: "I was happy to get the car I wanted at a fair price, without the horrible hassle of dealing with the front line car salesman's pressure tactics."
Education is the key to confidence when buying a car
Being well informed will minimize any apprehensions you may have. If you follow this Canadian New Car Buyer's Checklist as a guideline, you will do your homework, price out vehicles on line, go on a few test drives, negotiate with confidence and have a satisfying and enjoyable new car buying experience. Enjoy the process ... and enjoy your new ride home!
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