Common mistakes to avoid when buying a used car

Common mistakes to avoid when buying a used car

Posted on September 5, 2022

You should follow these tips whether you are buying a new or used car. If you follow the advice of our Rockton car loans team, you will be successful.

Don't buy from a private individual

Everyone has heard the old saying about shady used car salesmen, but that business has been cleaned up for the most part.

In Ontario, for example, if you want to sell a used car, you have to go through a very thorough background check and put up a lot of money as a guarantee against possible lawsuits.

This gets rid of most of the bad apples.

When you buy from a private seller, you don't get the same protections. Unless you're buying from someone you trust with your life, you should never buy their used car.

Used cars are retaining their resale value

Before Covid, most used cars were sold at a price that was lower than their book value.

This is no longer the case. When you buy a used car, it will still be worth a lot of money for a long time.

This makes it harder for you to get the price down, but it gives you peace of mind that when you're ready to trade in your old car for a newer one, you'll get top dollar for it.

It's never been easier to get a loan for a used car

The auto finance industry in Canada has been turned on its head, and everyone is fighting for market share.

Whether it's a chartered bank or a small shop that specializes in subprime car loans, everyone is willing to make a deal.

The Bank of Canada's decision to raise the prime interest rate that must be paid to access the capital markets is a big reason why people are so happy. Before interest rates get so high that no one can make deals that are competitive, lenders have, at least for now, made it easier to get a loan.

This means that you could still get approved even if your credit wasn't great, but, you need to move quickly.

Where to find great deals on the best used cars

Popular websites like AutoTrader are great for doing general research, but the best place to buy a used car is from a local used car dealership.

When you work with a local dealership, there are a few benefits that come with it.

Excellent customer service and care for vehicles. When you buy from a local dealership, you can rest easy knowing that someone will be there to help with maintenance.

The dealership can help you get a car loan; they use their existing relationship with the lender to get a better deal.

If you want to buy a used car or any vehicle, gas-powered or electric, go to your local car dealership today. They are there to make sure you have a great time buying a car.

When you’re ready for a car lease or loan, get in touch with the Rockton auto loan experts at Northway Ford for great deals on auto finance.