Planning to buy a car:New one or couple of yeras old????
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Posted on: 23-02-11 21:50:26
Don't have much knowledge about cars......planning to buy one as I recently got my G2.This will be my 1st car in Canada (have driven before in India for many 4-5 years).
I m looking for some advice from our expert CD's to help me make the right decision.
1st thing is to decide weather to buy a brand new car or a lightly used car?(keeping in mind 0% on finance that is available these days.)
Have'nt figured out the budget yet!
Any suggestions as in what all to keep in mind before buying will help.
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Life is too short for drama & petty things, so Kiss Slowly, Laugh Insanely, Love Truly and Forgive Quickly.
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Quote:
Originally posted by cool girl
Don't have much knowledge about cars......planning to buy one as I recently got my G2.This will be my 1st car in Canada (have driven before in India for many 4-5 years).
I m looking for some advice from our expert CD's to help me make the right decision.
1st thing is to decide weather to buy a brand new car or a lightly used car?(keeping in mind 0% on finance that is available these days.)
Have'nt figured out the budget yet!
Any suggestions as in what all to keep in mind before buying will help.
Answer
a) How much you want to spend for car and insurance? (Honda Civic has highest insurance rates as an example)
b) What would be main purpose for the car - work or picking up kids from school or grocery or pleasure (going to kitty parties)..?
c) Reliability of the car.
There is nothing called lightly used. You bring new car outside the showroom and it is already depreciated by 20%.
0% is very catchy but nothing is free. Dealer will screw on pricing. Do not think that dealer will give cash price @ 0%. You end up paying some implicit interest which in some cases could be higher than market rate.
There are 3 costs associated with car ownership in Canada .
Initial price ( or depreciation per year ) .... older the better .
Maintenance Cost .... the newer the better .
Insurance ....... older the better and the right car .
Fuel Consumption ......
Ideally depending on one's years of driving experience ( which spells the insurance cost ) , plus the maintenance cost (the newer the car is the better ) , initial cost ( sale price ) and the fuel costs comprise the 4 major components a total of which over the years should help analyzing which car to pick .
Also remember that for the same year , different cars would have different insurance cost , some thing which can be checked by doing online quotes on TD Auto Insurance calculator .
Good used Toyotas are considered good buys even by mechanics . I personally feel that unless you have 6-8 years of G driving experience , it might be cheaper to own a well maintained used car .....
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Fido.
Quote:
Originally posted by Desi # 1
Answer
a) How much you want to spend for car and insurance? (Honda Civic has highest insurance rates as an example)
b) What would be main purpose for the car - work or picking up kids from school or grocery or pleasure (going to kitty parties)..?
c) Reliability of the car.
There is nothing called lightly used. You bring new car outside the showroom and it is already depreciated by 20%.
0% is very catchy but nothing is free. Dealer will screw on pricing. Do not think that dealer will give cash price @ 0%. You end up paying some implicit interest which in some cases could be higher than market rate.
If we buy 2nd hand then the budget is between $10k to $15k.If we buy brand new then upto 25K approx.
Also, I m thinking that I will take my husband's car and he can drive the new (brand new or 2nd hand) atleast untill I gain confidence.So, the usage will be home to office,groceries and outings on weekends.
When u say dealers can scre up on pricing.......that is what I want the suggestion from u guys so that we are not fooled by them.If the dealer says the x amount is the "price on road" and we will give you 0% on finance.....what are the ways they can still apply hidden costs???
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Life is too short for drama & petty things, so Kiss Slowly, Laugh Insanely, Love Truly and Forgive Quickly.
.......................................................................................
If the budget is between 10k to 15 K you can get a decent 2007/2008 Toyota Corolla or Matrix with mileage less than 80K.
Buying a new car from a dealer:
I did not deal with any dealers but saw some article on yahoo canada autos:
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http://ca.autos.yahoo.com/p/2055/what-not-to-say-when-youre-buying-a-car
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The dealer will tell you the monthly payment,Try to negotiate the total cash price of new car & work the payment monthly, they will try to add all warranties which will add up to the cost(4K+).
mk11
The 0% finance is a myth. All the interest is added into to MRSP and recovered upfront with 0% finance if not the price is reduced and the money is recovered as part of the interest.
If you are looking for fuel efficient cars then you should look at the following:
Honda Fit, Toyota Echo, Mazda 2, Hyundai accent/elantra, or Kia small car, Suzuki SX4, Ford Fiesta or to be launched Fiat 500 to name a few.
The insurance rates are high for cars but lower for SUV's. But you spend on gas for SUV's versus Cars.
With all the turmoil in Middle East and also with the high oil prices it should be prudent to go in for a fuel efficient car.
If you need the dealer pricing you could get it from carhelp.com or similar websites after paying a small fee.
Happy driving.
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Sunny Leone a true Canadian DESI now back in India !.
When u say dealers can scre up on pricing.......that is what I want the suggestion from u guys so that we are not fooled by them.If the dealer says the x amount is the "price on road" and we will give you 0% on finance.....what are the ways they can still apply hidden costs???
IMO,
Step # 1 - First do you home work and make up mind for which brand of car you want to buy or most like as per budget.
see the below website for just rough idea that how much is market value for cars.
http://www.autotrader.ca/?gclid=CN7fpsuxj6cCFQl_5Qodv0yldA
Step # 2 - ask insurance company for quote - example tell them that you want to buy particular car than how much insurance will be OR
check below website for rough idea as well.
http://www.insurancehotline.com/?gclid=CNjXkZ3io6cCFUbf4AodX3A_AA
step # 3 - some company's offer 0% by manufacturer, some offers 0.9% but in this case dealer can do for you 0% as well that means difference of 0.9% dealer is going to paid behalf of you to manufacturers and you can avail car at 0%.
Hidden cost - Admin fee, AC fee, Tire fee, PDI and freight, etc..... but this all cost normally dealer have to tell you right away before making deal with you.
If you needs more information PM me and may i will help you out.
all the best..........
rgds
