Excerpt from: Car Loans Canada -- Getting a Good Loan
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| August 24, 2007 | | If your buying a car in 2007, make sure you read this! | | If your planning on buying a car in 2007, be a smart shopper! Consider the following when making your decision: - if you have the choice of a cash rebate or zero-percent financing, take the cash and apply it as a down payment.
- Sales were off in 2006, as a result the competition is steep. Dealers seem to have a large amount of summer inventory. Take advantage and negotiate for a great deal.
- Sometimes it's wise to be a contrarian and so this may be a good year to buy a truck or sport utility vehicle. As a result of record-high gas prices last year, demand for gas guzzlers dropped precipitously. Now, with gas prices headed down, the savings on a purchase may outweigh the savings on fuel -- particularly if you don't drive many kilometers.
- Be very careful if your unsure of how many kilometers you do a year. Most attractive lease offers are based on a very low kilometer lease. The average driver in Canada puts on more than 20,000km a year. If you’re an average driving, taking that low kilometer lease and hoping for the best could result in stiff fines and penalties.
- Watch out for options. Especially those that may have been tacked on by a dealer looking to a make a quick buck. Options can substantially drive up your payment.
- If you do decide to take the plunge in 2007, don't fret about buying a vehicle that's new to the market or has been substantially redesigned. Thanks to computer-aided design and modern computer assembly, the gremlins that once plagued new models have been largely eliminated.
- Keep a close watch on the on the Bank of Canada prime lending rate. If it goes up, expect programs and incentives to change for the worse. Act fast to get the best deal.
- Avoid buying more vehicle than you need or can afford, and keep the financing terms as short as possible.
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