Buying first car in Canada is a very important decision. And therefore nobody would like to take a chance, neither should you.
Whether you are an immigrant in Canada who has recently arrived and started the journey of a new comer, or a graduate who just completed studies and started an internship or first job, you would not like to spend your money in buying first car in Canada, without taking the following factors into consideration.
Your few minutes to read this carefully can save your pocket and end you up in a much more comfortable situation, compared to go-with-the-flow style of buying a car.
What is more important at this stage? Brand or Money?
Ask yourself this question and keep the following things at the back of your mind:
- Number of passengers you want to travel with. Immediate family, near and dear ones.
- Number of Kilometers of daily, weekly, monthly and yearly commute.
- The segment – hatchback, sedan or SUV. Canadian weather (especially winter) is different than others. SUV gives you confidence of safe driving during harsh and challenging conditions. SUVs can be of multiple types, entry level SUVs, mid sized SUVs and the big SUVs.
- Your current Bank Balance.
- Your income, if you have a job, or expected income in case of soon to be employed.
- Your priorities. You might first want to get a better accommodation, better laptop, better insurance, and several other things which is going to support you in initial few months and years.
- Insurance can be much more higher than your expectation, and the whole calculation may go upside down. You are new, with less driving experience in Canada, which might shoot up your insurance premium for initial period. Some times it may be costlier than car itself. Have the numbers ready, and the numbers should be exact.
- Everyone has a budget, which is mostly, a little lower than what it costs to buy their dream car.
- Good brands may attract your attention, can be recommended by friends and family, but you may be charged a premium price on that Brand, which is a dead investment for few years until you get it back while selling your car. Brand indeed is a good thing, but is it important at this time? or you can think of any other brand which is within your budget and has:
- the same engine capacity
- same number of seats
- same features
- same fuel efficiency
- same finance rate
- but lower price
- ‘Penny saved’ is ‘penny earned’. If you save, say $3000 in total price, it is as good as earning $3450, because when you earn $3450, after deducting 15% tax (considering a lower slab) you get $3000 in your bank account, and earning an extra penny is much more difficult than spending an extra dollar (you know it better than me)
The secret of Automobile Industry
The secret of Automobile Industry is that there is no secret!
Automobile Industry is highly matured industry, because every manufacturer has proved their expertise with the passage of time and with the super tight competition since more than 100 years, manufacturers only with proven abilities has survived this course of tough time.
All manufacturers have good technology, nice features, beautiful showrooms, excellent websites, strong sales team, technically sound service team, a wide range of vehicle segments, and decades of experience.
As a matter of quick interesting fact, several automobile spares and parts are manufactured by same manufacturer for multiple Brands, which proves that car industry is driven more by its marketing strategy and less by technology.
This also means that, the only factor influencing the decision of buying first car in Canada is PRICE
Price you pay can be of two types:
- One time – purchase price – major portion – severe impact
- Recurring – maintenance – minor portion – lower impact
How much to spend on buying first car in Canada?
According to me, you should use a part of your fund for car, which is 75% of the total budget of car. The rest 25% can be used in case of emergency or miscellaneous, unavoidable and unexpected expenses related to car. This will help you to stay cool, calm & comfortable even in the state of emergency and unforeseen situations, and avoid getting financially stressed, when you are already stressed with the situation. If with the Grace of God, you don’t face any such incidence, you then have those 25% to upgrade your next dream car 🙂 sounds good?
First car in Canada, an Investment or Liability?
Having a car, means having a bunch of liabilities. There is no alternative, but there is always a better and cost effective way.
I would not like to scare you or deviate you from buying your first car in Canada, but help you make the right calculations. Facts are facts, good or bad, hiding them will not change them.
– Malay Sherasia
Expenses which start only after you buy your first car:
- Insurance
- Licence Plate Renewal
- Periodic Service or Preventive Service or Maintenance like Oils & filters, coolant and other fluids, etc.
- Unexpected or Breakdown Service or Accident job, because of your or others’ mistake.
- Wear and Tear with usage like Tyre, Seat cover, Paint, etc.
- Fuel (long drive lovers, be careful on this)
- Toll (those who indulge in riding on 407)
- Parking, at office and at residence (if rent does not include)
- Depreciation (3 years of usage can bring down the car value up to 50%)
- Interest you pay on Finance/Lease
- Taxes you pay from buying to parking to servicing
- If you are a little bit of careless, then Tickets can be a big cost too
Where to buy your First Car in Canada?
By now, you must be clear about several things, which are necessary to decide where to buy your first car in Canada.
Malay Sherasia (YourCarMate), is a OMVIC certified Sales & Leasing Consultant for the Canada’s No.1 Volume Ford Retailer located on Yonge Street at Steeles Avenue. Being an immigrant, Malay knows what is Best for an immigrant. Therefore he is successful in building relations with several first time car buyers, by understanding, analyzing and offering the Best Deal to suite the financial conditions of each and every buyer, be it first time or an experienced one.
Before buying your first car, if you would like to have a short discussion with Malay, you can reach him on MalaySherasia(at)gmail.com
Wishing you “All the Best” for your first car buying experience in Canada! Remember one thing, it is an important milestone in your life. Make it memorable with some great photographs, with your First Car in Canada.
Do not hesitate to reach Malay for any type of query related to Car!
If you want to make your career in Automobile Sales in Canada, read this article!
