8 tips for calculating a new car budgetBy Kijiji Autos
Buying a new car is a major financial decision, the second biggest purchase in your life after buying a home. Here are eight tips to help you better plan for this important step.
The total price of the car
It may seem obvious, but did you know that many buyers are unaware of the full cost of the vehicle they want to buy? They simply look at the monthly, sometimes weekly, payments but don’t consider the total amount. Yet, it makes a big difference to your bottom line.
Unless you’re able to pay the full price in cash for your new car, you’ll need some form of financing. When you see ads for new cars on Kijiji Autos or elsewhere, read them to the end. They often have important information, such as 0% interest, which could save you several hundred dollars at the end of your borrowing period. A 1% difference in the interest rate can result in a variation of about ten dollars per month in your payments. The financial manager at your dealership will help you find a suitable offer.
Transport and preparation
Some provinces require merchants to include freight and preparation costs when posting their selling prices. Others don’t. So, in some cases, you may have to add up to $2,000 to the purchase price of the vehicle. Of course, your dealer will explain these additional costs in detail.
Insurance is essential and mandatory, but there are several types. Don’t forget to include the cost of insurance in your budget when buying a new car. The price will vary greatly depending on the model, where you live and your driving experience. It’s possible to shop a little, but don’t skimp on protecting your new vehicle.
Once again, this is a must. Registration allows you to use public roads for several hundred dollars per year. In some provinces, it’s even possible to customize your own license plate. It will cost a few more dollars but lets you tell everyone the pet name for your new wheels!
Don’t neglect your car if you want to keep it for any length of time. Maintenance is indispensable. Twice a year, you should go to your preferred dealership or garage and have your vehicle serviced—tires, brakes, oil and other fluids—everything should be checked. Plan to spend a few hundred dollars each year to keep your ride running smoothly.
We often forget to include this detail when budgeting for a car. Yet, it’s often the biggest expenditure you’ll make for your car in a year, whether it’s new or used. Give yourself some leeway as gas prices often fluctuate.
Options and accessories
Your dealer will suggest options and accessories at the time of purchase. You can also see them described in detail in the new car ads on Kijiji Autos. Roof racks, rims, floor mats and other items increase the cost of the car. But they’re often worth it and easy to add to the overall purchase price.
Planning the purchase of a vehicle requires a little attention and a lot of math. It’s a major investment, so take the time to do your calculations. You’ll enjoy your new car more if it doesn’t blow your budget!
Easily find your next ride on Kijiji AutosSearch now
10 popular work vehicles to consider
Built to provide rugged strength with a spacious and functional design, work vehicles help you overcome whatever challenges you might face throughout your day on the job site. Kijiji Autos makes it easy to browse and search through a wide selection of new and gently used work vehicles, so that...
5 steps to picking the best commuter car
Are you looking for a new vehicle to use for commuting to work, school or wherever else you might need to go throughout your day? Then you're going to want to find a car that offers a perfect balance of safety, comfort and fuel efficiency. Choosing a new commuter car might feel overwhelming due...
How to choose your first car
Buying your first car can be a smart and economical decision. But how do you choose the best first car that fits both your lifestyle and your budget? Read this simple guide from Kijiji Autos: 1. Consider the cost Owning a car costs a lot more than just the vehicle itself. If you've been saving...
4 things you should know before picking your hybrid or electric car
Hybrid and electric vehicles have certainly come a long way since they first debuted on the mass market in the late 90s. If the time has finally come for you to buy a hybrid or e-car that suits your lifestyle, here are some things to consider before going for a test drive. 1. Know the difference...
Test drive your next new car confidently with these 8 tips
You can do all the research in the world and read everything the experts say, but there's really only one way to find out if a car is right for you: Take it out for a spin. Here are eight steps for an effective test drive! When testing vehicles, car journalists often drive for several hundred...
Browse Kijiji Autos by Certified Pre-Owned Options
Depending on their budget and specific criteria, it can be difficult for first-time car buyers to know whether they should be focusing on new or used vehicles. To make matters easier, Kijiji Autos now offers a third category to act as a hybrid of the two: certified pre-owned. These vehicles...
How do I submit paperwork when buying a car during COVID-19?
Filling out the paperwork necessary to finance and register your car was a nuisance long before the COVID-19 restrictions. But even with restrictions in place, you can still complete and submit all required forms in order to set up financing and drive your car legally. But how can you do that...
Buying a car during COVID-19
Because of COVID-19, much of life as we know it has been put on hold. If you were in the middle of shopping for your next car, you can continue the buying process by staying extra vigilant and only meeting dealers and private sellers with care. If you're wondering how to move forward with your...
What you need to know about car insurance during COVID-19
Due to the widespread effects of COVID-19, many banks and financial institutions have begun to offer mortgage deferrals and have slashed interest rates for those Canadians who are most vulnerable. As a result of this, the car insurance industry is promising discounts, rebates and deferrals for...
Tips for buying a used car
In life you can be assured of three things, death, taxes and the fact that when the Canadian International Auto Show rolls around, consumers will be ready to buy cars. The show promotes new and innovative technology as well as fuel efficient advancements in the automotive world. New vehicles are...