Vehicle Purchase How To Guide

It can be thrilling to buy a vehicle, new or used. However, there are many things you should consider before buying.

General Tips

Before you begin looking for a car or van, consider what you are looking for. Consider the distances you travel, the roads you use and the loads you are carrying. You’ll be unhappy with the vehicle’s ability to perform the task you have asked it to.

Remember that driving costs include maintenance, fuel, insurance, and parking. This should all be included in your budget. Many Canadians feel that renting a car is cheaper than purchasing a car in major cities. Many Canadian cities offer car-sharing programs which allow members to park their vehicles in different locations for a nominal fee. These fees are determined by distance and time.

The contract you sign with a dealership or used car seller is legally binding. The seller usually won’t let you cancel the contract once you have signed. You may not have a cooling-off period. Before you make any purchases, check the policy in your area.

How to choose a dealer

Compare shop and take the time to research potential dealers. You may get a different price or options from different dealerships for the same model and make. Most options are sold in packages that are predetermined by car manufacturers. Dealers might try to sell you additional options like anti-theft, fabric and paint protection and anti-theft. You may not have all your options in terms of vehicle colours and other details if you purchase near the end the model year.

High-pressure sales tactics remain a problem. Do not allow yourself to be pushed into purchasing a vehicle you do not want or cannot afford. You can walk away if you aren’t satisfied.

Comparing Prices

Non-profit consumer groups such as Automobile Protection Association offer important information and services to their members, including the list prices that dealers pay for new cars. This information can be very useful when you negotiate the price of a vehicle. You may need to pay a one-time fee for access to these consumer organizations and/or additional fees to use their services. However, it could be a good investment if you can negotiate a lower vehicle price. Protegez-Vous and Consumer Reports (in French only), are good resources of information when you’re shopping for a vehicle.

Do You Need to Lease or Buy?

Consider carefully whether you want to lease or buy. Although it is better to buy a vehicle outright, not everyone can afford to purchase it in full. You can finance the purchase or lease the vehicle. No matter what you do, make sure to read the contract. Surprised at the differences in interest rates or down payments? You can determine the final price of your loan or lease to help you decide which option you prefer. You should consider not just monthly payments. Ask the car dealer to reveal all upfront costs.

Buy a used vehicle

You have two options when buying a used vehicle: a private seller or a car dealership. You can choose to have the vehicle inspected by an independent mechanic or test drive it before you purchase. Check the history of your vehicle. There is often a charge. Ask to see maintenance records if they are not available.

Buying From a Private Seller

Ask them where the car was serviced, and if they have service records, ask for them.
Some provinces require that a seller of a used vehicle provide an information package (UVIP) to anyone who is interested in buying it from them. The package includes:

•    Vehicle registration history including all previous and present owners, as well as the municipality where they reside;
•    Information about the odometer
•    Vehicle lien information (i.e. if any liens are registered on the vehicle);
•    The minimum tax payable will be applied to the fair market value (Red Book).
•    consumer tips;
•    Vehicle safety standards
•    Inspection information
•    Information about retail sales tax;
•    Forms for bill of sale

To find out if these packages may be required in your region, contact your provincial or territorial ministry for transportation.

Buy from a Dealer

Ask the car dealer if they have access to the vehicle’s history. If so, you may be able to get a copy.
Do some comparison shopping to get a better idea of the price of the vehicle. You can search the Auto Trader for your area or compare pricing using the Canadian Red Book Vehicle Valuation Guide and the Canadian Black Book.

Curbsiders

Curbsiders can be sellers who pretend to be private sellers but are in fact unlicensed dealers. They are skilled in loading substandard vehicles, with badly repaired or tampered odometers. Be wary of multiple ads that use the same number. A curbsider is not a good option. Although you may believe you are getting a great deal, it is more likely that you will end with a problematic vehicle.

What does a vehicle identification number tell you?

The Vehicle Identification Number (VIN), a unique serial number that consists of 17 characters, is used by the auto industry for individual vehicle identification. The VIN is required to obtain a vehicle history for a used car. It is located on the dashboard of the driver’s side and can be seen through the windshield. The VIN is often listed in used car ads.

Even if your vehicle history is clean, it could have been involved in an accident that was not reported. Trustworthy mechanics should inspect your car.

Solutions to Problems Following a Purchase of a New Vehicle

There are many options available to you depending on what kind of problem your vehicle may be having.

First, contact the car dealer if you have a problem with your new car. If the problem is due to a defect in material or assembly by the manufacturer, or the way the manufacturer applies or administers its new vehicle warranty, but you are unable to resolve it with the manufacturer, the Canadian Motor Vehicle Arbitration Program (CAMVAP) can help. This plan offers binding arbitration, which may be an alternative for court. You can contact your provincial/territorial consumer affairs office if your problem with your vehicle is due to misrepresentation at point of sale.

If you need help with vehicle-related questions or difficulties, the organizations listed under the “contacts” tab at top of the page will be able to assist you.

You can repair the vehicle yourself and use the Small Claims Court to either recover the costs of repairs or revoke the contract. In cases where you and the dealer disagree on the facts of the vehicle’s condition, it is best to seek legal advice before proceeding with this option.

A defect in the manufacturer’s design (sometimes called a “lemon”) can affect a vehicle’s safety, value, and use. To find out if your vehicle may have a defect from the factory, contact your local consumer affairs office. CAMVAP offers binding arbitration, which may be an alternative for court. Another source of information is the Office of Consumer Affairs’ information sheet about “lemons”.

Tip for environmentally responsible consumers:

Running your vehicle can help you save energy, money, and the environment. For information on choosing a fuel efficient vehicle, maintenance and fuel-efficient driving techniques, as well as vehicle fuels, visit Natural Resources Canada.