Follow Us:

Share:

 

 

Tags

consumer protection (138)
OMVIC (135)
buying a car in Ontario (76)
ontario motor vehicle industry council (74)
Ontario's Vehicle Sales Regulator (65)
Consumer Education (50)
Buying A New Or Used Car (39)
buying a used car in Ontario (39)
Car Buyers (38)
buying a car (35)
MVDA (35)
car-buying tips (34)
curbsiders (33)
CPO (31)
car buying in ontario (30)
vehicles (30)
Curbsiding (26)
Motor Vehicle Dealers' Act (25)
All-In Price Advertising (19)
all-in pricing (18)
consumer protection ontario (18)
How to buy a car in Ontario (15)
car buying tips (11)
Car-Buying Rights (11)
Dealers (10)
Ontario (10)
Buying a car privately (9)
Ontario Car-Buyers (9)
Negative Equity (8)
All-in price (7)
buying a new car in Ontario (7)
Test Drive (7)
Buying a New Car (6)
Consumer Protection Act (6)
consumer tips (6)
Dealerships (6)
Leasing (6)
OMVIC-Registered Dealers (6)
Ontario Car Buyers (6)
Vehicle Purchase (6)
Car show (5)
consumer awareness (5)
curbsider (5)
financing (5)
fraud prevention (5)
Investigations (5)
know your rights (5)
Motor Vehicle Dealers Act (5)
Used cars (5)
car-buying (4)
CarProof (4)
Contracts (4)
Cooling Off Period (4)
CPO. consumer awareness (4)
Investigation (4)
Liens (4)
loans (4)
protections when buying a car (4)
Trade-ins (4)
Used Vehicles (4)
UVIP (4)
#FPM2017 (3)
Auto Show (3)
Avoid Car Buying Scams (3)
buying a used car (3)
Buying a Vehicle (3)
Car (3)
compensation (3)
compensation fund (3)
Conditions (3)
consumers (3)
Contract Cancellation (3)
CPA (3)
dont get ripped off (3)
fraud prevention month (3)
Georgian College (3)
Inspection (3)
Mandatory Disclosures (3)
Private Seller (3)
Registered Dealers (3)
vehicle sales (3)
What to look for when buying a used car (3)
Advertising (2)
all-in (2)
As Is (2)
As-Is (2)
back to school car buying (2)
Bill of Sale (2)
Black Friday (2)
Buying a car from a dealership (2)
Car shows (2)
car-buying in Ontario (2)
Carfax (2)
CIAS (2)
Compliance (2)
Consignment (2)
Consumer (2)
COP (2)
credit applications (2)
dealer advertising (2)
Dealer Prices (2)
dealer pricing (2)
Dealership (2)
Drive Clean (2)
Education (2)
extended term loans (2)
Fees (2)
Flood-Damaged Vehicles (2)
importfest (2)
John Carmichael (2)
lease (2)
Leasing a car in Ontario (2)
Leasing a new car in Ontario (2)
Mechanic (2)
Monthly Payments (2)
Motorcycles (2)
Odometer Tampering (2)
OMVIC consumer protection (2)
price advertising (2)
recission (2)
rental cars (2)
rolled-back odometers (2)
Sales Final (2)
salespersons (2)
Trade-in (2)
Unfit (2)
Used Vehicle (2)
Vehicle (2)
2017 Ottawa-Gatineau International Auto Show (1)
ABSC (1)
additional fees (1)
advertising tips (1)
all-in advertising (1)
All-in-Pricing (1)
APA (1)
Auto Financing (1)
Auto Shows (1)
AutoCheck (1)
Auto-Financing (1)
Automobile Industry (1)
Automobile Protection Association (1)
Automotive Business School of Canada (1)
Automotive Certification Course (1)
Automotive Education (1)
AutoShow (1)
avoid car scams (1)
avoid scams when buying a new or used car (1)
Back to School (1)
barrie (1)
Become a salesperson (1)
best time to buy a car (1)
Bikes (1)
black friday car shopping (1)
Branding (1)
Business Practices (1)
buy a car (1)
buying a car for a student (1)
buying a car from a dealership in Ontario (1)
Buying a motor home (1)
Buying a motorcycle (1)
Buying a motorcycle in Ontario (1)
buying a new motorcycle in Ontario (1)
buying a new or used car in Ontario (1)
Buying a rental car (1)
Buying a trailer (1)
buying a used motorcycle in Ontario (1)
Buying a used trailer (1)
Buying an RV (1)
buying in Ontartio (1)
Buying Privately (1)
C.A.L.E. (1)
Canadian International AutoShow 2016 (1)
cancelling a contract (1)
car ads (1)
car buying advice (1)
car buying rights (1)
car buying scams (1)
Car Help Canada (1)
car pricing (1)
Car-Buying Guide (1)
carbuying in Canada (1)
car-buying scams (1)
carfax.ca (1)
Changes to Drive Clean (1)
Code of Ethics (1)
Comp Fund (1)
Complaints (1)
Complaints Process (1)
Conservation and Parks (1)
consignment sale (1)
Consumer Complaints (1)
Consumer Protection Notice (1)
Consumer Warning (1)
cooling-off period (1)
curbsiders; buying a car privately; private sellers; OMVIC (1)
dealer advertisements (1)
dealer fees (1)
dealership advertisements (1)
Depreciation (1)
EHVIP (1)
Electric Vehicles (1)
EV Rebate (1)
extended term financing (1)
Extended-Term Loans (1)
fake ad (1)
filing a complaint (1)
Financing a car (1)
Financing Tips (1)
First time car buyers (1)
Flood Damage (1)
Floods (1)
georgian college auto show (1)
Glossary of Terms (1)
Graduation (1)
help with buying a car (1)
Holiday car shopping (1)
Honda Indy2016 (1)
How to Buy a Car (1)
Hurricanes (1)
Illegal Sales (1)
Innovation (1)
Inspecting a Care Before Buying (1)
Interest (1)
Kijiji (1)
Leasing a car (1)
Lien (1)
manufacturer advertisements (1)
Mileage (1)
ministry of government and consumer services (1)
Ministry of the Environment (1)
Ministry of Transportation (1)
Modified cars (1)
Motor Vehicle Compensation Fund (1)
Motor Vehicle Dealer's Act (1)
Motor Vehicle Dealers Compensation Fund (1)
Motor Vehicle Purchase (1)
MTO (1)
MVDA legislation (1)
Mystery Shopping (1)
Natural Disasters (1)
new car advertising (1)
New Cars (1)
New Vehicles (1)
No Hidden Fees or Surprise Costs (1)
North Bay (1)
odometer (1)
odometer-tampering (1)
OMVIC Academy (1)
OMVIC Certification (1)
omvic UVIP (1)
OMVIC-Registered Dealer (1)
Ontario cars (1)
Ontario Motor Vehicle Sales Regulator (1)
Ontario's Drive Clean Program (1)
Ontario's Motor Vehicle Sales Regulator (1)
Ottawa (1)
Ottawa Gatineau International Auto Show (1)
phony online car ads (1)
Presentations (1)
Private Sales (1)
Purchase Agreement (1)
Purchasing a Vehicle (1)
Recalls (1)
Registered Dealer (1)
Registrants (1)
reviewing car ads (1)
Risk (1)
Safety Standards Certificate (1)
Salespeople (1)
scammers (1)
Sell Privately (1)
selling cars (1)
selling your car (1)
seminar (1)
Seminars (1)
shopping for a car (1)
Shopping for a used car (1)
Shopping for a used vehicle (1)
Signing a Contract (1)
SSC (1)
summer tires (1)
Suspension (1)
Take a Picture (1)
Taking Delivery (1)
Test driving (1)
Trade in (1)
Trading in (1)
Trading in a vehicle (1)
trading in my car (1)
trading-in my car (1)
unlicensed dealers (1)
Unregistered Salespersons (1)
upside down (1)
used car advertising (1)
vehicle advertising (1)
vehicle delivery (1)
Vehicle History (1)
vehicle prices (1)
Vehicle Purchasing Tips (1)
Vehicle Shopping (1)
VIN (1)
Warning to Consumers (1)
Water Damage (1)
What is "AS IS" (1)
Wholesale (1)
Windsor (1)
winter tires (1)
you're protected (1)

 

OMVIC Blog: Car Buying Tips

Know Your New Car Budget... and Stick to It!

Jan 26

Written by: OMVIC Communications
Friday, January 26, 2018  RssIcon

Shopping for a new car? Before starting the hunt, you should ask yourself: “How much car can I afford?”


 Negative Equity car piggy bank

 

Costs that come with buying a car

Let’s break this down a little bit further. You need to think ‘big picture’ when considering making a significant purchase, like a car. Unlike real estate, most vehicles are a depreciating asset that begins losing value the very second you turn the key in the ignition to drive it home. So what are some of the costs that you need to consider? Here’s a basic list to get you started:

  • Gas/fuel
  • Parking – some people can incur parking costs at home and at work
  • Repairs and general maintenance (oil changes, car washes, brakes, tires, etc.)
  • Extended warranty – while not right for everyone it may make sense if you plan to keep the vehicle for a long time, or would not be able to afford a significant repair bill should problems arise with the car
  • Insurance – depending on the individual and the vehicle, monthly insurance costs can be more than car loan payments

Once you have calculated these costs, determine your monthly budget; if needed, a financial planner can help with this calculation.

What’s your new car monthly budget?

Once you know your monthly budget, subtract the extra costs (gas, parking, etc.) from this total. That’s how much you can afford to pay each month in payments for a new car (including loan interest rate, taxes).

Keep in mind, when negotiating the price for a vehicle, you should always negotiate based on the total cost of the car, never monthly payments. Later you can work backwards with your calculation to make sure the payments are within your budget. Don’t forget to take into consideration any outstanding car loans that you may have and make sure you understand what you’re getting into if you decide to go with an extended-term car loan. 

Car loans

Unless you plan to pay cash for your new vehicle, you’re going to need to finance your purchase. This can be done through the dealership or your bank. Call your bank before visiting the dealer so you can compare the rates available.

And don’t select a car loan based solely on the monthly or bi-weekly payment it provides. Many lenders today offer extended term loans (6-9 years). While these often do provide lower payments they are not without significant risk and often result in negative equity. To learn more about these loans and negative equity click here.

All-in pricing

Once you finally know your new car budget you’re ready to start your car-buying adventure… test-drives and all. Remember, if a dealership advertises a price for a vehicle, there should only be two additional charges: HST and licensing. That’s the law.

For more helpful tips, including how not to become a “monthly payment junkie”, the dangers of extended-term car loans and to learn your car-buying rights, visit OMVIC.ca.

 

 

Connect with OMVIC on social media!


facebook    Ontario Motor Vehicle Industry Council

twitter@omvic_consumers

instagram   @omvic_official


LinkedIn   Ontario Motor Vehicle Industry Council


omvic www.omvic.ca


cpo  www.ontario.ca/page/consumer-protection-ontario






Print