Buying a used vehicle can be quite the daunting task – how do I know I’m getting a good deal? What if I buy a ‘lemon’? Do dealerships offer warranties on used vehicles? How old is too old? How much should I spend? And the list of questions continues.
It’s hard to have all the right answers, but we’d like to help you sort out a few of them. The main thing to remember above all else though, is that you should only buy a vehicle that you’re comfortable purchasing and driving.
How Much Should I Spend?
This really depends on your personal budget/income. We’ve done some digging and the general rule of thumb is that your car payments shouldn’t consume more than a third of your monthly income.
Taking your financial situation into consideration before buying a vehicle is definitely a must. Knowing how much deposable income you have to put towards car payments each month is an important “pre-vehicle-search” step. If you’re planning on buying your used vehicle outright, then ensure your budget still has some cushion against unforeseen expenses that may pop up after you’ve bought your new ride.
The British Columbia Automotive Association (BCAA) offers up some helpful hints for budgeting for that new car purchase in their article Buying a Used Car.
How Old is Too Old?
This really depends on the vehicle and the previous owner(s). While you may come across a used car from 2008 that looks great on the outside, if the owner neglected regular maintenance checks and drove the car like it was going out of style, then mechanically it may be an utter mess. And on the flipside, you could come across a 1995 vehicle that may not look ideal – a few paint chips, small dents – but runs like a dream because the owner took really good care of it.
Of course, as vehicles get older, parts may be more difficult to find. So if you’re looking to purchase a vintage car as anything other than a hobby restoration piece, it’s probably a good idea to keep looking.
The most important thing to consider when buying used is the overall condition of the vehicle. In his article, Tips on buying a used car for under $3,000, Michael Clark of Autos.ca provides some tips on what you should pay the most attention to when it comes to buying that used car.
How Do I Know I’m Getting a Good Deal?
We know part of the excitement of buying a new car is walking away knowing you haggled the dealer down to the best possible price – who doesn’t find that fun! But as Vlad Samarin states in his article How to Buy a Used Vehicle in Canada, getting the best deal isn’t everything.
“Don't look for the cheapest car or a ‘best deal’. Your goal is to find a car in good condition for a reasonable price. The actual vehicle value depends on its condition more than anything. If you are choosing between a cheaper mediocre-looking car with an unknown past and the more expensive one that was well-maintained, has clean history records, and is in excellent mechanical condition, it's worth it to pay a thousand or two for a more expensive one. You will simply save on repairs and will enjoy driving it.”
Used Car Warranties
The days of buying a used car at your own risk are pretty well over. Most reputable dealerships will offer some sort of guarantee or short-term warranty on their used car inventory. While it won’t cover the car for the long-haul, it’s better to have some coverage than none at all. Short-term warranties or 30-day exchange privileges are becoming more popular, so ensure you check into what your local dealership offers before heading there to check out their inventory.
