3 Reasons to Buy a Used Car

If you’ve ever turned on a TV — and chances are you have — you were probably inundated with commercials for shiny new cars for only a single paycheck per month! When your family is in the market for a new car, a used cars service could offer you something just as beautiful as what you see in on the new lot. That’s not the only benefit, either.

Used Cars Are Cheap

It might seem obvious, but used cars are cheaper, and it goes beyond a simple price tag. Perhaps you prefer luxury cars, but could never afford one right off the lot. For what you’d spend on a brand new Toyota, you might be able to find the luxury car of your dreams. Even if you prefer something family-friendly over a sports car, you could save up to 50 percent by purchasing something used.

It Might Be Safer

It seems like a different car recall is in the news every day. Purchasing a new car leaves you vulnerable to undiscovered mechanical issues. If you opt to buy one that is a few years old instead, it’s more likely that any problems were already discovered and fixed, leaving you with peace of mind.

You Don’t Have to Skip the Warranty

Many people worry they’ll end up purchasing a used car that doesn’t run for long, but most dealerships offer certified pre-owned cars. Certified used cars are usually slightly more expensive than traditional used cars, but the certification means the car was professionally inspected and, if it had any problems, was professionally repaired. Certified used cars come with a warranty that ensures you can drive the car for a set amount of years, at least.

If you’ve been trying to decide between purchasing a brand new vehicle or buying a used one, our used cars service could be just what you’re looking for. Whether you need something for the whole family or something to impress your friends on the weekends, we provide a range of vehicles for a wide variety of budgets.

Top Benefits of Used Cars

There are numerous reasons to be excited about buying and owning a used car – the cause that is most compelling can vary from one individual to the next. The motivations for purchasing a pre-owned vehicle can be lumped into two main categories: style preference and budget. As for people who are looking to save some money on getting an automobile, the majority of them can meet this goal by preferring to drive cars, SUVs, vans, or trucks that have had at least one prior owner. The benefit of style might not be something that requires explaining, as entire communities have been built around classic and antique enthusiasts.

The Affordability Is Superb

Many people would be quick to take advantage of any opportunity to save thousands of dollars – especially if there needs can be met just the same as if they had paid the higher price. Buying used cars is a strategy that can be deployed in order to protect the balance of your bank account by allowing you to satisfy your need for personal or family transportation without paying much. In many instances, the high level of affordability inherent to pre-owned autos enables buyers to get a better car than they originally thought they would be able to buy.

You Get to Own Your Favorite Model

While a lot of people pick the vehicles they purchase purely for budget and functionality, there are still many who get a particular car because it is the one that best matches up with their tastes. For car enthusiasts, lots full of used cars is where they have the most pleasure shopping for their next automobile – the Chevy Camaro and the Ford Mustang are prime examples of cars often purchased used because of the performance and visual appeal of earlier models.

The list of benefits of buying preowned can be quite long, but a great percentage of the people who purchase used find that either their taste in style or the friendliness towards their budget the most compelling reasons.

Financing a Used Car With Bad Credit

When you have bad credit, it can be difficult to finance a used car. Everyone needs reliable transportation, but having bad credit oftentimes translates to higher interest rates and car payments. Despite these common obstacles, there are ways to get financed, even if your credit isn’t in the best shape. If you have a low credit score and you are in the market for a used car, here are some things you can do to increase your chances of securing financing.

Make a Large Down Payment

Making a large down payment is a simple, yet effective way to boost your chances of getting approved for financing. It shows financial institutions that you are serious about purchasing a vehicle and that you are capable of saving and managing money. You also present less of a financial risk, since buyers who invest large sums of their own money are less likely to default on loans. Buyers who make a down payment may also gain access to better interest rates.

Rebuild Your Credit

This may seem like an obvious course of action if you have bad credit, but it is the most efficient way to ensure that you get approved for a loan. Paying off overdue bills and establishing a history of responsible credit use can go a long way when it comes to securing financing. Car buyers with lower scores will be subject to higher rates and less favorable payment terms.

Use a Cosigner

Using a cosigner can greatly improve your chances of getting financed. Enlisting the help of a spouse or close family member is the most common practice when it comes to cosigning. It should be noted however, that if you do not make your monthly payments on time, your cosigner will also be held responsible.

Don’t Despair

In the world of used cars, there are practical ways to secure financing with bad credit. We offer customers a variety of financing offers, and we are sure that we can work with you, regardless of your financial situation. Don’t give up just yet; there are many ways to finance a car with less than perfect credit.

Car Loans Help Dealerships Form Solid Relationships With Customers

It’s not impossible to purchase a shiny brand new car with a poor credit history. In fact, it’s relatively easy if you turn to your local dealership. Dealerships like us are often willing to bend over backwards to help people get the wheels they desperately need. Why is that, you may ask? Well, it has to do with an important and treasured concept in business called customer relationships. When we help people get bad credit car loans on good terms, we forge very strong relationships with our customers, and these customers often come back to us again and again for their future automotive needs.

We enjoy making people happy and watching the cars they purchase from us enact a positive change in their lives. If you’ve been without your own vehicle for a significant period of time, you may have no idea how much simpler it will make your life. The pace of public transportation in most cities just can’t compare with being behind the wheel of your very own car. Bad credit car loans will help you get to the point where it’s no longer a struggle for you to pay the bills. Just imagine how nice it will be if you can cut your commute time down by half!

When we are able to help people like you make their lives so much easier, we know that we’ve formed a strong business relationship that will last for years into the future. Perhaps you will buy your next car from us ten or twenty years down the road. We often don’t make any money off the loans themselves, but the value of the relationships we have with our customers more than makes up for that. We hope you will turn to us for bad credit car loans and let your new wheels turn your life around in a more positive direction.

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.”

Best Time to Buy a Car in Canada

Changing your car is something you will inevitably do multiple times during your life. The fact that you live in Canada, the second biggest country in the world and that Canadian cities tend to spread more horizontally than growing vertically, makes the point of having a car literally a “must.” So, you will ask yourself a lot of times: When is the best time to buy a car?

Changing your car is something you will inevitably do multiple times during your life. The fact that you live in Canada, the second biggest country in the world and that Canadian cities tend to spread more horizontally than growing vertically, makes the point of having a car literally a “must.” So, you will ask yourself a lot of times: When is the best time to buy a car?

And here is my fast response: it depends on your needs and your rush. That is why in the following article I’ve split the analysis in three: If you want to know the ideal month for new cars, the perfect moment for used cars and the third and last one: if you are in a rush.

Best Time to Buy a Car: September to December for New Cars

If your primary concern is price and you are looking for a new car, the best time span of the year is between September and December. And more precisely, the best moment is November.

The fact that new models are being delivered and parking lots need space, makes manufacturers offer incentives for previous year’s models with the intention of attracting customers to drive these away. Sometimes, you can find a few thousand on MSRP savings with incentives that are really worth.

Additionally, during February and March, usually a low sales season, new car prices also go down a little bit but never compared with the levels reached during the last quarter of the year.

Nissan Canada sometimes offers the Rogue during October-November with 4,000CAD savings incentives.

Anytime for Used Cars

A new car is the same anywhere: you go to dealer X, Y, and Z and they all have the 0 Km same vehicle. Wherever dealer you go, you will get the same exact “clone.” But used cars are different. Buying a used car is more a matter of opportunity than timing. Any time in the year you can find different used car offers as these aren’t globally managed by a massive market flow.

Looking for a Used Car: Don’t Rush If Possible

While I’ve talked about it on other articles, you need to remember that even with the same exact kilometers, same precise date of maintenance and being in similar weather conditions, vehicles depreciate in different.  Cars are used differently: bumps, driving habits, breaking hard, breaking slow, high speeds, low speeds… there are multiple factors that affect the actual condition of a vehicle. And all this can result in the fact that both “brother” cars have different costs.

If you are looking for a used car, don’t rush. The ideal time span you should use for exploring alternatives is 3 – 4 weeks of 10 hours a week of search. The fact that you have found a desirable offer doesn’t directly means that you should go with it. We have all been there and that “opportunity feeling” influences a lot on making a decision.

Propose Yourself at Least 10 Options on a Spreadsheet

One thing that helps a lot not to rush and be happy with whatever decision you make at the end is to put as many options as possible on the table. Yes, an actual “data table” or spreadsheet. If you propose yourself to get up to, let’s say, ten choices, then you can be sure that you will make an excellent final decision.

Take your time, don’t rush, and do a table with all available options before saying “Deal!”.

Urgency? Yes, sometimes it is urgent…

If your current car is broken, you have the “urgent need” of having a car, or you just some eventuality is rushing you, then I suggest you analyze the following before jumping into any decision. 

  • If your urgency is because of work, consider evaluating the monthly costs of a lease for a new car.
  • If it is because you need more space because of a new family member, work reasons or just upgrading for space, consider SUVs available under 500CAD/month.
  • If you are considering used vehicles, take at least two weeks of intensive search. The more time you take and the more options you see, the better decision you’ll make.
  • If your car is broken and you urgently need one, consider renting another one for a few days while you decide. 

The best choice will always depend on how clear your judgment was at the moment of closing your next car deal. Good luck!

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping people to better understand the complex market of new vehicles in Québec and Canada. You can connect with Jorge in LinkedIn or send him a direct message.

Article reference: 
https://www.leasecosts.ca/en/articles/best-time-buy-car-canada

The Financial Benefits of Purchasing Your Next Car Used

If you are seeking out ways to save money in the future and watch your finances, choosing to purchase your next car used is a wise decision. Cars are not good investments and the odds of you selling any car for more than you purchased it for are quite slim. Therefore, it is important to focus on minimizing depreciation. Additionally, used cars have lower fees and insurance rates.

Less Depreciation

It is no secret that depreciation is problem when it comes to cars. When you buy a brand-new car and decide to sell it a few years later, you will be fortunate to get anything over half of what you paid for it originally. Alternatively, used cars depreciate at a much slower rate because the greatest amount of value is lost as soon as the new car is driven off the lot where it was purchased.

Lower Payments and Fees

A few of the other major advantages to opting for used cars include the lower car insurance rates and the cheaper registrations costs. Since there is less risk for insurance companies in the unfortunate case you get in an accident with a used car, they are far more likely to offer you attractive rates. You can even choose to opt out of collision coverage all together and save a significant amount over time. Lower payments essentially equate to less stress because you will not be fearful of getting in an accident and having to deal with expensive repairs of fixing your new car.

Considering used cars as opposed to new ones can be a smart financial decision. It can be hard to eliminate financial stress from your life, but choosing to go with a used car is one great way to minimize your debt. In the unfortunate case you got in a collision, having a used car can minimize costly repairs.

Common Myths About Poor Credit and Car Loans

If you have poor credit, then you may believe that buying a quality used car is beyond your means. However, you may have more options than you know. From bad credit car loans to finding permissive lenders, we want to show you how a few common myths about having poor credit may be keeping you from taking the first steps to owning a pre-owned vehicle.

Bad Credit is Forever

If you have charge offs or a past bankruptcy on your credit report, you may think that your credit is ruined forever and that no lender will ever see you as an acceptable risk, even if they offer bad credit car loans. However, even very poor credit can be improved by paying your bills on time and avoiding credit inquiries, which can lower your score. With a little work over the course of a year or so, you can improve even the lowest of scores.

You Are Not in Control of What You Will Pay

This is a common myth that might be causing you to put off looking for a used car. While the thought of being victimized by a lender because you are a bad credit risk can be frightening, there is less of a risk if you are an informed, flexible shopper. Get a copy of your credit score, know what it says, and be open to a variety of makes and models in order to have more than one loan option open to you.

Low Monthly Payments Are More Important Than Loan Terms

When browsing bad credit car loans, you may believe that lower monthly payments are the most important factor. However, this myth may push you into a longer, costlier loan. Consider the length of the loan as well as the payment amounts to see the bigger picture.

We hope busting these car loan myths help you become a more informed shopper. While a poor credit score may limit your options to a degree, a better understanding of the facts may

A Financial Primer on Buying a Used Car

Buying a used car is one of the bigger decisions a consumer makes in his or her lifetime, so getting it right is important. In reality, the financials of buying one of our used cars isn’t really all that complicated; nonetheless, there are several key things to keep in mind. Following these steps will help the buyer master the financial aspects of car buying.

Paying Cash

If the car buyer has enough cash on hand, it is always nice to pay for it all at once. Not having monthly car payments can free up money for other things and leave a cushion for maintenance costs. The buyer should make sure he or she has enough money left over to pay for gas, routine repairs, license fees and car insurance. Also, sometimes the buyer can negotiate a better purchase price by paying in cash.

Getting a Loan

When taking out a used car loan, there are a few rules of thumb to keep in mind. It is a good idea to put 10 percent down on the car and to try to pay off the entire loan in three to four years. The total cost of the car should not exceed 20 percent of the buyer’s monthly take home pay. These are just general guidelines and the loan should be structured to meet the budget of the buyer.

We offer a full service finance department that can guide customer’s through the steps of getting a car loan. In most cases, this can be taken care of in an hour or two. It is a great convenience for the buyer to handle everything all in one place.

Saving Money

Used cars are a great deal for the buyer. They can save the customer a large sum of money by reducing purchase price, taxes and insurance costs while providing a vehicle that will provide dependable transportation for years.

Maintain Your Brakes for Your Safety and Budget

Proper car maintenance is necessary to keep your car running and performing to its highest potential. Among the top services that are not only important for performance, but also for safety is keeping your brakes maintained. Being able to stop your vehicle when you need to is a crucial part of its operation, and changing out your brake pads when necessary should be a priority for any car owner.

Driving Habits Affect Wear

What kind of driver are you? If you are a fairly aggressive driver, you are more likely to wear down your brakes faster than individuals who are more cautious. If you tend to follow other vehicles more closely and drive quickly up to stop lights, it is important to get your brakes checks frequently to ensure proper functioning.

Urban Versus Rural Drivers

Another factor that will influence your brake wear is where you live. Driving in cities in increased traffic times can wear down your brakes quickly. Rural drivers typically have less braking time than city drivers, but road conditions can affect wear if brake pads are exposed to dust and dirt on a frequent basis.

Address Problems Early for Safety and Your Wallet

Many brake pads come with a built-in wear indicator that can be easily inspected by a mechanic. Having these evaluated during routine maintenance is easy and can catch problems before they become a major safety issue and financial burden. If your brakes start squealing, have them checked out as soon as possible. It can become a bigger and much more expensive mechanical repair if you wait too long. When brake pads completely wear down, you can start to hear grinding which often means you will need your rotors replaced. The longer you wait, the more likely your brakes are to fail, and this danger can be prevented through proper maintenance of your brake pads.