GETTING FROM A TO B

Game of Life

Making the right choice Before you begin decide how much you can afford

to spend Decide which car models and options interest you Research the reliability and quality of the cars you

are interested in Find out what warranty options come with the car Search for different financing options that are

available to you

What Can you Afford Plan to spend between 10-15% of your total

monthly budget on all car expensesThis includes insurance, maintenance, licensing,

etc

New cars will come with a warranty that will cover major repairs but not routine maintenance.

Newer cars = Higher Insurance Costs

New or used? Buying a new car can be tempting and has benefits:

No previous owners or problemsBuilt to your likingFull factory Warranty

Used cars can provide a reliable, financially-wise choiceLook into lease returns and you may be able to

find a car that is only 2-3 years old but save 30-40% over a new car

Certified used cars can often come with a warranty of 12 months or more

Rules for Buying Used Do your research!

Check the vehicle history if it is available.Make sure the car has never been totaled and

that you are aware of any previous accidentsGet it checked by your own mechanic or

mechanic service such as BCAA. Search used car dealers and individuals Find the trade-in and retail values for the

cars you are looking at Try to arrange a test drive

Buying or Leasing Why lease?

The advantage of leasing is that you get a new car every few years while letting the dealer worry about selling it off eventually.

If you want to avoid the down payment needed for financing a car purchase and don’t drive more than the allotment per year

More about Leasing Drawbacks of leasing include:

When your lease-option expires you must decide to either buy the car outright (you end up paying more in total) or returning the car.

If you think you may want to buy the car do it from the start.

Payments will be lower than a purchase so don’t get pulled in unless you know this is what you want.

Buying If you decide to buy a car make sure you do the

following:

1. If you can pay it all in cash and not go outside of your budget, do it.

2. Evaluate your loan or financing options. The dealer options are not always the best choices and may have higher interest rates.

3. If you are financing your car purchase, make sure the monthly payments will stay within your budget

Shopping for a Car Loan You will need to look at the following items when

deciding on a loan:

1. Annual Percentage Rate (APR) – The interest rate you will be charged at.

2. Length of the loan

3. Monthly Payments

4. Total Finance Charge

5. Total to be repaid○ Check out a Car Loan Calculator

Where to Get Financing You can get financing from car dealerships

or from a bank loan. Shop around to make sure you can find the

best deal Some dealerships will offer 0% financing

on certain makes and models. This option can be worth looking into.

Sample Loan – $25000 car purchase

How much of that is interest payments? Check it out.

Example calculations Estimating the total cost of a loan:

Amount of loan x APR x Number of years$10000 x 0.10 x 5 years = $5000$5000 + 10000 = $15000

Monthly paymentsTotal to be paid/# of months$15000/60 = $250 per month

True Cost Owning a car comes with the following costs that you

may have not considered:Depreciation (loss in value of your car)Interest on a loanInsuranceRegistration, License fees, taxesGasolineRegular MaintenanceFluidsDifferent season tiresParkingAir Care

Insurance All drivers in B.C. must have Basic auto insurance

coverage. Basic Autoplan includes up to: $150,000 for medical and rehabilitation costs for

each injured person $200,000 for damages claimed by other drivers $1 million per person if the at-fault motorist is

under-insured.

Where to find your Car Many dealers offer ‘Build and Price’ options

on their websites for new cars. Most new and used car dealerships have

websites that list their current inventory of new and used vehicles

To find private sellers you can search websites such as Kijiji or Craigslist

It’s time to find your ride!