Students in Canada - Common Problem - "Where can I buy a used car?"
Topics: Used Cars (buying) / Used Car Dealers (Locating) / Car Insurance Quotes
Many students in Canada are searching for used cars in order to be more mobile and feel a little more independence while staying in Canada.
There are some barriers to this however. Students don't know where to start when looking for used cars or used car dealers.
You shouldn't just go ahead and buy your used car form the dealer without being aware of these important issues.
Some of the important Issues to consider before you buy your used car include:
- Financing of used cars - How to finance / credit or cash payment. How much and where can i find them?
- Mandatory car insurance for used cars - do you have any idea how much car insurance costs in Canada? What happens if you don't have it?
- International drivers licence - so you can drive your used car in Canada or the USA. - The requirements and the process. How to get an international driver's licence? How long is it valid for? Do you need a Canadian driver's license?
The How to Guide for Used Cars: (for foreign students in Canada at least..).
Issue #1 - How to Finance a used car for a student.
To finance something means that you will make monthly payments on it. Chances are, if you are a foreign student in Canada you do not have credit. Credit means that you are a good or safe risk by the bank or whomever will loan you the money. If you have no credit, that means when a bank or loan company enters your name in a computer system to get your information about your credit, no information is returned. This means that the bank will not loan you money to buy a car.
Now, how do you get the car? The easiest solution is to pay for the car in cash. Well how much money do you have and how much is your car? You can find many different car prices by searching in the classified ad section of the newspaper, or by looking
on the internet, or by driving, or walking around the city to look at the used car lots. The prices are usually written on the window of the car.
Negotiate - Used cars are very negotiable. You should never pay the asking price written on the windshield. The dealer will expect a negotiation, this is normal. Be willing to walk away if they refuse to negotiate with you, they know there are many car dealers around and they want the sale, they know you will buy and buy now, so in the end, they will lower the price.
Especially if you are buying your car with cash, they will lower the price.
How to Finance if you don't want to pay cash - There are many used cars dealers who advertise that they will approve everyone. No Credit - No problem. You should check them out. Beware the interest rates and the amount of down-payments required though. These people make their money in the high risk market, they lose some, but the interest rates and other surcharges make it worth it to them. This may be a great way to establish your credit.
Let the Buyer Beware. This old economic term applies very staunchly in the used car market. Make sure you know the terms of the agreement. Ask about a warranty period and exactly what is covered. If you buy the car today and is breaks down next week, what will they do for you? It is always a good idea to take the car to an independent mechanic (a professional who fixes cars) for an inspection before you buy a used car. The inspection will usually cost between 20 and 30 dollars. If the used car seller / dealer does not let you take the car for an inspection, walk away, he has something to hide and this can only hurt you. Of course, you will have to be sure that you want to buy the car if you want to take it to get inspected.
Don't get a Lemon (a lemon is a used car that may look okay, but will break down immediately and often and will end up costing you a lot of money, much more than you expected.
Category: Personal Finance