5 Words You Need To Know Before Buying A Car
5 Words You Need To Know Before Buying A Car
Posted on June 9, 2023
Thinking of buying your first car? Knowing the lingo is half the battle. Our team likes to say we were all first-time buyers at one point. So giving our customers all the tools they need to make the right decision is our job. This post will educate you on the five words you should understand before you start shopping.
Trade-In Value
The trade-in value of your vehicle is basically what the dealership is likely to offer you for it when it comes time to trade your new car in for another model. That trade-in value or dollar amount is then subtracted from the cost of your new vehicle.
The trade-in value of your vehicle is based on a few things including the model, condition of the vehicle, colour, features, market demand, reliability and mileage. Dealers also consider how well a vehicle has been taken care of over the years including if you have taken it in for regular servicing.
CARFAX Report
CARFAX Canada has a comprehensive database that holds all the information about the vehicles in the country. When you pull a CARFAX report on a vehicle, it includes dozens of details including whether or not a vehicle has been in an accident, if it has ever been stolen, if there is a current lien on the vehicle, and more.
If you are considering buying a used vehicle, you will want to thoroughly review the CARFAX report before you make any decisions. This will give you a clear understanding of the vehicle’s past.
Financing
Financing is when you borrow money from a lender to pay for your new car. You agree to pay them back in monthly payments with additional interest.
The average length of a finance term in Canada is anywhere between 3 - 5 years. However, you can finance a car for up to 7 years. The longer the financing term, the lower your payments typically are but the more money you end up paying in interest.
On the other hand, a shorter term means you pay less in interest but your monthly payments are higher. Once you have paid your financed loan back in full, you own the vehicle.
MSRP
MSRP stands for Manufacturer’s Suggested Retail Price. This is what the retailer sets the window sticker price for. However, this may not be the actual price of the vehicle.
The price varies depending on the trim level you choose. As you go up in trim levels you get more features and luxury items which means the price increases.
Manufacturers Warranty
This is also sometimes referred to as a factory warranty and it is the coverage you received the day you drive your new vehicle off the lot. All new vehicles come with some type of manufacturer's warranty and it covers the costs of any repairs that come with mechanical or electrical failure.
These warranties always come with a specific time or kilometre range in which they are valid. If you sell your vehicle or trade it in before the warranty is over, the new owner is still covered by it.
Think You’re Ready To Take The Leap?
Buying a new vehicle for the first time is a huge accomplishment. It can also be intimidating. Our team has your back. We walk you through the process the second you walk in the door. We get to know you deal breaks and must-haves. We understand your budget then we help you find the right vehicle.
Once you find the right fit? Our finance team will guide you through the financing process, including how to apply for a car loan, what paperwork you will need and what to expect when it comes time to start making payments. Come visit us in West Edmonton Mall and let’s get you on the road!