Are Used Cars Right for Your Family?

Most families today have at least two cars because they are a necessity. Maybe both parents work, or teenagers have activities they need to get to. For whatever reason, multiple cars in a family is becoming the norm. Are used cars the right choice for your family?

Ask Yourself How Much Driving Will be Done

Buying used is often a good idea if the car won’t be driven for long distances. If it will only be used to and from school and activities, a low-mileage used car may be the ideal solution for the student in your family. Many older cars are just as reliable as new models, but with a much lower sticker price. The same goes for anyone commuting a short distance to work.

Consider the Insurance Costs

Insuring a new auto is often, but not always, more expensive than insuring a used car because it’s worth more. There are exceptions, such as when a new car has extensive safety features, but if you’re considering a used car and new car that are the same make and model, the one that’s just a few years old will probably be less expensive to insure.

Will More Than One Person Drive the Car?

How long will you keep the vehicle if you buy a used model? In many families, used vehicles are used for more than one child. If you have two or more teens who will need wheels within a few years, it’s a lot easier to buy a third car when you can hand a gently used model down to the newest driver.

Consider Repair Costs

Used autos tend to need more repairs, so be sure to consider repair and maintenance costs as well as car price and insurance costs. Buying a gently used model that has a good maintenance record can reduce repair costs.

Consider all costs, not just the sticker price, to decide whether used cars are the best choice for your family’s transportation needs.

Why Canada’s used-car world is becoming a buyer’s market

TORONTO — The balance of power in the used car market is shifting towards shoppers as improved data and online offerings create more opportunities to push for the best price.

A fast-evolving online marketplace is providing more intelligence on the fair value of cars, said Cliff Banks, a Detroit-based auto retail expert.

“I don’t know that it can be any more transparent…they all provide intelligence on the pricing and the deal of the vehicle, whether it’s a good deal, a fair deal.”

Kijiji Canada recently announced it will add a standalone auto sales site that will roll out later this year to keep up with shifting expectations. The site will add reviews of dealers as well as market pricing information from Carproof.

“The key feature for us, and one of the biggest, the biggest win for us is what’s called price transparency or price analysis,” said Matt McKenzie, general manager at Kijiji Canada.

The online classified company, owned by eBay, already boasts of being the largest player in the Canadian market with about 500,000 vehicle listings. Autotrader, owned by Etobicoke-based Trader Corp., lists about 444,000 vehicles on its site while there are many other offerings on the market as well.

Listing companies are boosting their online presence as the used vehicle market is set for significant growth, said Dennis DesRosiers, president of DesRosiers Automotive Consultants.

“There’s tremendous opportunity, and that brings in all the different retail players and their approach of, how do I get a piece of that?”

While new vehicle sales are expected to be largely flat at about two million this year, the used vehicle market is set to add half a million more in sales in the next three to five years, on top of the three million that changed hands last year, said DesRosiers.

The rise in the used vehicle market comes as improved quality in the past decade means cars and trucks are lasting much longer, allowing for a potential lifespan of four to six owners from the two or three expected not long ago.

“It takes 23 years to remove the vehicles from the road now, a decade ago it only took about 12, so it’s essentially doubled,” said DesRosiers.

Used vehicles also offer margins that are two to three times higher than for new cars, adding to their appeal, he said.

The quality and information improvements have significantly changed the overall used retail market, said DesRosiers.

“It’s not that far long ago, call it 15 years ago or maybe 10 years ago, where the used car market was largely a culture of deceit…even if the online capacity was there, there was just so much riffraff in the used car market that it was very dangerous. A lot of that has changed.”

The improved access to data means used-car retailers have to be more transparent and competitive about their pricing, said Jamie Tekela, director of pre-owned operations at Pfaff Automotive Partners.

“You need to really justify what you’re asking, why you’re asking it, and you can’t go asking $500 more for the same Honda Civic with the same mileage. It just it doesn’t work any more.”

“It’s night and day, to be perfectly honest. It’s gotten a lot more customer friendly,” he said.

The improved information on crash reports, comparable sales, and other metrics hasn’t done away with potential negotiations but does give more justification, said Jamie.

“There’s always going to be negotiations when trying to buy and sell vehicles, but with so much information available to each and every one of us, it’s a lot easier to explain our rhyme and reason why we’re asking what for a car.”

What Pre-Approval Means for Car Loans

Car loans can be expensive over the life of your vehicle if you do not plan ahead. High interest rates and long terms will add to the cost of your car over the years. It may be tempting to go straight to the dealer and test drive some vehicles when shopping for a car. Before doing this, consider becoming pre-approved for a loan. Shopping for a loan before shopping for a car will give you a better understanding of your buying power and the overall cost of your potential vehicle.

Pre-approval is a preliminary loan application. A potential lender will review your credit, your income, and possibly several other factors. They will then tell you how much they are willing to lend you, what the interest rate on the loan will be, how long you will be expected to make payments on the loan, and if any down payment will be required.

As the borrower, you do not have to commit to accepting the loan at that time. Banks, credit unions, and dealers offer pre-approval, so there are several financing options to choose from. Pre-approval allows you to shop at all these locations before committing to a loan.

With a good credit score and a large down payment, you may be pre-approved for a very large loan. While this may make it tempting to purchase a more expensive vehicle, be careful to not overextend yourself and exceed your monthly budget.

If you are not approved for a large enough loan, pre-approval allows you enough time to prepare to compensate for the difference. Consider a larger down payment, a cosigner, or a longer term loan to make your car loan offers more agreeable.

Pre-approval helps you know how much car you can purchase, how long it will take you to pay for that vehicle, and what the long-term costs of the loan will be. Car loans can be intimidating, but pre-approval may make the borrowing process easier to understand.

What to Know About Buying a Car in British Columbia

A car is a major purchase. Unless you have thousands of dollars lying around, chances are you’ll need to borrow money. Car loans are a viable option for buying all kinds of vehicles. By understanding different aspects of the car buying process, you can get the right auto for your needs.

 

Car Loan

 

A car loan is financing used for purchasing a vehicle. There are many institutions offering this funding option. For example, many auto dealers offer in-house financing for their customers. You can finance up to the maximum cost of the car. Working with dealership, is a convenient way of borrowing funds and buying your dream car all in one place.

 

Payments

 

Car loans are generally paid in full within one to five years. You have the option of making bi-weekly or monthly payments. Consider making a substantial down payment. It’s the easiest way of lowering your payouts.

 

Budget

 

There are so many automobile brands, makes and models. How do you know what car is best for you? Research costs associated with the vehicle. Consider things such as insurance, fuel consumption, maintenance and parts. You can find this information online.

 

Test Drive

 

Test drive the cars that interest you. Compare things such as handling, steering, braking, comfort and smoothness of the ride. Getting behind the wheel helps you make the right choice.

 

Used Car

 

There are many advantages to purchasing a pre-owned vehicle. Typically, these autos undergo extensive bumper-to-bumper inspections. In many cases, late model cars are equipped with the latest modern technology and features. It’s a budget-friendly approach to buying a high-quality, reliable vehicle.

 

Getting around anywhere in British Columbia is a lot easier when you have your own vehicle. The good news is you don’t have to break the bank to do it. With a little upfront leg work, you can obtain a loan and drive off the dealer’s lot in your dream car.

Why You Should Select Used Cars Over New Cars

There are a myriad of reasons to choose used cars over new cars when it comes time to replace your current car. Opting for a used car eliminates the car losing significant value as soon as you drive off the lot, the options are endless and your insurance rates and fees can be substantially lower.

Depreciation

A major reason to choose a used car is because of deprecation. As soon as you drive your brand-new car off the lot, the value plummets significantly. The only way to avoid this massive decline in value is to choose a used car. Unfortunately, cars are horrible investments and it can be hard or impossible to get back everything you paid for your car.

Endless Options

The options are endless when it comes to used cars. No matter what type or style of car you are seeking, you are bound to find a used car to suit your needs. If you have a dream car that you cannot afford to purchase new, the chances are high you will be able to find a reasonable price for a used version. Additionally, if your dream car is no longer made, you can still purchase it used!

Lower Insurance Rates

On top of all the other benefits, the insurance costs are far lower with used cars then new cars. Insurance companies’ base rates off your cars value and having a new car can leave you paying outrageously high rates. Even if you do not visually notice a difference between a one year-old car and a brand new one, your insurance company definitely will.

Used cars can be far more cost effective and less of a risk to purchase. Cars should not be thought of as investments because new cars lose almost half of their value as soon as you drive them off the lot. With all the options and styles to choose from, you are bound to find the right used car for you.

The Benefits of Using a Dealer to Shop for Used Cars

When you’re shopping for used cars, approaching a dealership about deals and values is potentially something you’ve been told to avoid. However, there are many distinct benefits which our business can offer you during your search for the perfect car. Dealerships provide customers with a safe, quality experience throughout the entire process, and makes shopping convenient for everyone involved.

Convenience

The first thing we offer our customers is convenience. Our large selection of used cars assembled at our lot offer you the opportunity to view your many options at once, so you never need to waste time or resources driving back and forth. This increases your chance of finding your ideal car sooner, so you can get on with your busy schedule. Furthermore, we handle the paperwork involved with financing and title transfers to ensure you’re able to enjoy your new ride sooner than ever before.

Payment Options

When you buy from a private seller, you often have to pay for the purchase up front, severely limiting your options when it comes to finding your used car. At our dealership, we can work out payment options and offer financing to ensure that your finances align with your new purchase, and that the payments fit your needs over the years to come.

Quality Cars

We inspect our used cars before selling them to customers, and make the necessary repairs to ensure you’ll be experiencing a smooth ride when you drive off of the lot. Furthermore, many of our cars are covered by warranties, meaning that in the event you do experience a problem, we’ll fix your car, saving you time and cash.

Using a dealership to shop for used cars certainly has its benefits. Consider these before entering into your search for your next used vehicle to ensure you’re getting the best quality and service possible and that you’re receiving a satisfying ride that will really last.