A car is almost always now considered a necessity in Canada, particularly to those who work in places that are not accessible with public transportation or night shift/irregular time jobs. Before taking out a loan or shopping for a car, here are three questions you must first answer to better understand your situation.
Will you go for brand new or second-hand cars?
If cash is readily available, you can opt for cash payment to avoid loans. If you’re going to apply for a loan, try to review your finances and budgeting, focusing on fitting your expenses and savings as well as loan payments on your salary and monthly budget.
For brand new cars, it is recommended you apply for 3-5 terms only. Try to factor in your mortgage if it will affect your approval. If you already have the house or not planning to buy one, opt for the 8-term plan.
If you have adequate knowledge of automotive, you can take a second-hand pre-used car as long as the said car is well-maintained with a good deal for cash. Do not overestimate your technical car abilities, your maintenance fee on your car will be your downfall.
Be aware of your dealership
Choose someone or somewhere you think can be trusted. Scout them out and ask for recommendations from other people. Don’t give out your personal information readily, especially your SIN, as it could be used to trace your identity. When in doubt, don’t give deposits, it would cause a lot of hassle and time to refund it.
Check your warranty
Even if you have a new car, you will still need to check everything from the repairs covered by insurance and to what extent. The insurances available are the following:
- Liability insurance for repairing property damaged in the crash as well as the car as well as impromptu office.
- Collision insurance is for accidents that happened to you as well as handle the money for it.
- Comprehensive insurance is for any weather like weather damage, theft, and animal collision.
- Uninsured motorist protection to cover damage by an uninsured motorist. If the damages cannot be supported by the money, the AMSUA and its members could participate.
- Medical Personal-injury protection does not recognize who did it first but that such protection will also be confirmed. The patient will still be protected in the room but not in a room of, letting go?
- No-fault insurance covers everything. This includes injuries and property damage no matter who made the deed. This may be expensive but better safe than sorry.
- Gap insurance will be best if you still are paying. This is best suited for drivers who have other payments to consider. It is generally better to keep some extra money that you could pull in short notices.
Don’t force yourself to buy a car already especially if you still have payments and loans you are paying off. It will be hard to buy and decide on your perfect car nevertheless, don’t force yourself. It’s better to be prepared for the responsibility of the car rather than just buying it already.