Are You Looking To Buy A Car On A Tight Budget?

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Affordability is important for car buyers today. Picture: NewsCanada

(NC) Affordability is a big consideration for car buyers today. In fact, 77 per cent of consumers plan on spending less than $35,000 for their next vehicle, according to a recent study from autotrader.ca.

To make sure you’re getting the best deal on your purchase, check out these tips:

Research
Identify your needs versus your wants. Prioritize elements that are the most important to you, whether it’s comfort, mileage, passenger capacity or driving enjoyment. Understand which items are nice to have but you could live without if it means staying within your budget. Then, build a shortlist of options, seeing what else is available in the segment and reading reviews to help narrow it down.

Budgeting
Set a realistic budget that accounts not only for the cost of the car but also the cost of ownership, such as maintenance and upkeep, fuel and upgrades. Ensure you consider all the other costs involved in purchasing a car like taxes, licensing, inspection fees, etc. Try to look for a car that’s less than your budget to save room for contingency expenses that could arise.

Familiarize yourself with the value of the car by reviewing prices across multiple marketplace listings on autotrader.ca and look for price badging, which scans hundreds of thousands of listings to help you determine if a price is great, good, fair, or above average.

Financing
Compare rates and tenures offered by dealerships and banks. Don’t go for lower interest rates that have longer duration, as you will end up paying higher interest in total. Also, compare insurance rates and benefits for both the short term and long term to determine if the cost can come down in the long run.

Perks
Look online or speak to your local dealer to see if there are any financing, cash incentives or rebates available, which could bring the cost down further.