Guide to How to buy a car

Step 1: Getting started This section includes information about how to purchase a new vehicle. Use our checklist for a comprehensive overview of the new vehicle buying process. Your needs A new car is one of the biggest purchases you will make and should not be taken lightly. Being informed about how to buy a vehicle and how to protect yourself is important. The first step in buying a new vehicle is to decide what type of vehicle meets your needs. Do you do a lot of driving?  Is fuel efficiency important to you, or are you interested in a luxury vehicle? How much can you afford? Budget What can you afford? Setting a budget will help narrow down your vehicle choices.

Step 2: Choosing your vehicle

it’s research time. Look at model ratings, reliability information, owner satisfaction and fuel economy reports. Compare like vehicles, weighing their options, pricing, benefits and drawbacks.  Does the vehicle perform well in frontal, rear and side impact collisions? Reliability How reliable is the vehicle? It’s important to check a variety of information sources before making your final decision. This will allow you to compare the vehicle’s good and bad qualities. Start your reliability research by checking the Driving.ca website. The site provides comprehensive Canadian information about new and used vehicles as well as pricing details. Canadian Driver is also a Canadian vehicle information source that features vehicle test drives, reliability reviews as well as pricing information for new vehicles. Compare vehicle features using MSN. The site includes reliability information, vehicle reviews and budget calculators. Fuel efficiency Is the vehicle good on gas? Natural Resources Canada provides a comprehensive list of vehicles ranked according to their fuel efficiency. Search by year, manufacturer or type of fuel to find the best fit for you. Insurance Once you've narrowed your choices down to three or four different vehicles, compare what it will cost to insure each of the vehicles. Insurance costs can vary depending on the make, model and features so it's important to gather all of the information before you make your final purchase. Get a quick and easy auto insurance quote in just five steps. _uacct = "UA-502853-2"; urchinTracker();

Step 3: Shopping for your vehicle Test drive Once you’ve narrowed it down to your favourite two or three vehicles, take them for a test drive. Set aside one day so you can drive more than one vehicle, which makes it easier to compare. Be honest with the salesperson. Tell them you’re driving several vehicles and likely won’t be buying today. Take a friend with you when you’re car shopping. They may notice things you don’t. It can be helpful to get a second opinion. You can also have them take notes. A test drive allows you to get a sense of the vehicle’s characteristics, handling and options. It should last 30 to 45 minutes and duplicate the kind of driving you normally do, including some highway driving. It’s important to be objective. Carefully determine whether or not the vehicle meets your needs. Use the Consumer Reports’ checklist to help. Take a notepad and jot down your impressions of the vehicle as soon as you’re finished, while your impressions of the vehicle are still fresh. Taking a test drive can also help you assess the dealership. Their response to your test drive may tell you about their professionalism and help you decide whether you want to deal with them over the life of the vehicle. Be wary of dealers who do not have demos in a popular line of vehicles or who will only offer you a ride rather than a test drive.Step 4: Making the deal Once you’re ready to purchase your new car, familiarize yourself with the buying process. Learn the pricing terms; know your rights when leaving a deposit and how to negotiate the best deal. Consumer rights Learn how to protect yourself as a consumer before signing anything. Read our consumer tips section, which includes information about signing a contract, refunds and exchanges and warranties. Deposit dos and don’ts Signing a sales offer and leaving a deposit represents your commitment to purchase and is legally binding. The dealer has the right to keep your deposit if the deal is not completed in order to cover his costs. If you wish to have your deposit returned in the event the deal falls through, include a statement to that effect on your offer to purchase. A deposit of $1000 is adequate. Extra costs Familiarize yourself with all costs associated with the purchase, like taxes, pre-delivery inspection, freight charges, etc. Read and understand the contract before signing. Ask questions if you don't understand something. Know the extra fees you don’t have to pay when buying a new car, like administration fees, documentation fees, window etching, rust proofing and paint and fabric protection. Negotiating The amount of profit included in the cost to a buy a new car depends on many factors including the type of vehicle, supply, demand, and the dealership. As a rule of thumb, the amount of profit figured into the cost of a new vehicle ranges from five to 15 per cent. There is little room for price negotiation with entry-level vehicles. Negotiation power increases with each step up the ladder from entry level to luxury vehicle. Vehicles in extremely high demand and low supply are often subject to higher mark-ups.