What to Know When Buying a Used Car in Canada

Canadians who want to buy a used car in 2024 have some critical questions they need to ask themselves. This article is going to cover 4 things to know about buying a used car this year. We hope it helps!

What's Your Car Buying Budget?

Have you worked out how much cash you have available for your monthly car payment? This is arguably the most important thing to know about buying a used car.

This is an important question because inflation is making everything more expensive, so you must refine your budget to consider these new prices.

After you have worked out how much cash you have left in your budget, you can begin the car-buying process with a greater degree of confidence. To learn some great car budgeting tips, click here.

Assessing Your Credit Score

Once you have worked out your budget, the next thing you must do is look at your credit score. Lenders are more conservative & do not want to take on non-performing loans.

To mitigate the risk, lenders have increased the minimum credit score required to secure the most competitive interest rate car loans.

Right now, the minimum credit score required for a competitive used car loan is 720, don't worry; you can still get approved with a lower score, but the interest rate will be higher.

If your credit score is low, you can start working on it now, so you never have to worry about being forced to pay more than necessary.

Other Things to Know About Buying a Used Car

One of the biggest variables is what type of used car you will buy, brands like Ford have a great reputation for producing reliable vehicles like the iconic F-150, but you need to think about the long-term maintenance of the vehicle.

You should consider opting for an extended warranty when buying the vehicle. The extended warranty may cost you upfront, but it provides peace of mind over the vehicle's life.

Where to Find Great Deals on Used Cars in Canada

You may be thinking about buying a used vehicle from private sellers on websites like Kijiji Autos, but don't!

While most Canadians are honest, there are scammers on these websites that will rip you off; the vehicle you buy from them could have significant mechanical flaws that are hidden and won't appear on any CarFax report.

When you buy from a local, licensed dealership, you don't have to worry about whether the vehicle being sold is legitimate; the dealership will perform an inspection before putting the vehicle up for sale.

The same dealership can also help you secure financing for the car.

You can go to the dealership today, test drive the car, and get financed right away, so you can drive home the same day. So why not head on over to your local dealership now and start looking at their used car inventory?

If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.