A Guide to Buying a New or a Used Car in Canada

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Buying a car can be a daunting task. There are many decisions to make and aspects to take into account. You have to decide what type of vehicle and brand you want, your budget, and whether you want to buy a new or used car. Fortunately, this in-depth Canadian car buying guide covers most of the important aspects that you should consider before making a purchase. It will make the process easier by walking you through the steps of buying a car in Canada.

Car Insurance

To legally drive in Canada, a person must have auto insurance and plates. In British Columbia, Saskatchewan, and Manitoba, government-run insurers provide auto insurance. In other regions, a driver can choose his or her preferred insurer. In Canada, it is mandatory for every driver to have third-party liability coverage. Other coverage options such as comprehensive coverage and collision insurance are also available.

Get The Best Auto Insurance Quotes in Canada

Comparing insurance deals can take time. Luckily, rate comparison websites allow people to compare quotes from many car insurance providers in as little as three minutes. Shopping smart will help a person get the cheapest car insurance. People should first start by comparing policies from multiple insurers and learning about their options and how they work.


Budgeting should be the first step of buying a vehicle in Canada. People should first determine what they can afford. The total cost of a vehicle is more than just the purchase price. It should include things like taxes, registration, and licensing fees. A person will also have to consider other expenses associated with owning a vehicle such as auto insurance, gas, regular maintenance, registration, and repairs. A person should calculate his or her monthly income and costs and determine the amount of money that can be put toward a vehicle. A good budget will keep a person from overspending and should determine when to walk away from a bad deal. Once an individual has done thorough research and decided what is affordable, the person has to make several important decisions. It is advisable to consider the pros and cons of each.

New Cars

There are several advantages to buying a new vehicle. One of the obvious pros is that the car is new. A person can get peace of mind knowing a car is fresh from the factory, inspected, and is backed by the car manufacturer and dealership. An individual is also assured that the car has not experienced wear and tear. New cars come with innovative features such as forward-collision warnings, blind-spot warnings, adaptive cruise control, and lane-keeping assistance. Most of these features are not found on older models and minimize the risks of driving. The safety features can also help a car owner qualify for a lower auto insurance rate. New cars come with a warranty. This protects a driver if something goes wrong with the vehicle and it is a manufacturing fault. New models are also often more fuel-efficient and release fewer emissions.

Things to Consider When Buying a New Car

A person should decide the need for a car, and the vehicles that will serve those purposes. Individuals should consider where they live if their jobs require particular types of vehicles, and the number of people they intend to give rides to. A person should always factor in aspects revolving around cost. Individuals should not overestimate what they can afford, because it can lead to high payments. Early preparation is beneficial in the long run. Safety is important. Buyers should look into safety ratings for popular vehicles. The vehicle ratings focus on crashworthiness and crash avoidance and mitigation. They can help narrow down to the safest cars.

How to Get the Best Deal

Clients should find out exactly what they are paying for. A dealer should break down the total cost of the purchase. A buyer should ensure that he or she knows every single expense. Asking questions is encouraged. Shopping around is a wise decision. This will involve comparing prices. Many dealerships have online branches that allow prospective clients to get quotes. There are also dozens of websites that individuals can use to compare rates. This process will help a person determine the best deal and find out the best interest rates. All package deals should be carefully scrutinized.

Recommended Features

Buyers should opt for features that improve car safety. Paying for features such as automatic emergency braking, lane departure warning, forward collision warning, and blind-spot monitoring is worth it. A car should have these features if they are in the budget.

Used Cars

The main advantage of buying a used car in Canada is the cost. They are typically cheaper compared to new ones. A car is a depreciating asset, so they decrease in value. Another reason a person would buy a used car is a greater selection. People look for different things in cars. There may be something desirable that may be in an older model. In such a case, buying used is preferable.

Things to Consider When Buying a Used Car

An individual should hunt for a great deal. One way this can be achieved is by looking for a car that has reached the bottom of its depreciation curve. Sometimes when buying used cars people end up purchasing vehicles relatively new vehicles. But one thing that is usually hard to judge is the condition of the car. A quick visual inspection usually reveals whether a car has been properly taken care of or not. But it is advisable for a person to go further. A buyer can increase his or her chances of buying a good used car by getting a complete picture of its history. An individual should ask the seller for the vehicle identification number (VIN) and documents that show the full history of repairs and if a car has been in any accidents. Some services allow individuals to do a background check. A CarProof report can help to find out about previous accident claims and any outstanding liens by accessing information from publicly available databases in both Canada and the United States.

Wrapping Up

A car is a good investment. You should be patient if you want to find your desired car. The closer the car fits your needs, the more you will get from it. After considering the need for a vehicle, the costs, the pros and cons of new and used cars, and safety, you will be better placed to make the best-informed decision. By following this guide, you will get the car of your dreams.
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