Top Pre-Owned Vehicles in Canada for 2024 – MoneySense Guide

Considerations When Buying a Car

After choosing a car model, it’s wise to compare market prices. Use a calculator to estimate the total ownership cost, which includes insurance, fuel, upkeep, taxes, and possible interest charges if you’re considering a loan.

Before committing to a financing plan, evaluate the rates from both the dealership and your local bank. Dealers often extend loans for both new and used cars through various lending partners.

The tire and wheel size should also be on your radar. While bigger wheels may look appealing, they require more expensive tires, raising future replacement costs. Opting for 18-inch wheels over 22-inch ones could save you a notable amount of money in the long run.

Consider the type of fuel the vehicle uses. Most modern engines are designed to run on 87-octane gasoline, although some higher-performance or luxury models may suggest or require premium fuel. Using a lower-octane fuel might decrease engine performance but check the owner’s manual to be sure. If the vehicle strictly requires premium, expect higher fuel expenses.

When discussing the purchase, consider whether an additional warranty package is worth the cost. These are usually proposed during sale negotiations and can enhance your confidence in managing future repair expenses. Prices range widely, from a few hundred to thousands of dollars, with some even available on a monthly subscription basis.

However, instead of a warranty, you might consider setting aside a personal repair fund. This can offer an alternative financial safety net without an upfront purchase.

Red Flags When Buying Used Cars

Being cautious is crucial when purchasing a pre-owned vehicle.

• Request a Carfax report from the dealer. This document details the car’s ownership history, accident records, potential flood damage, and regional registration information.
• Review the vehicle’s maintenance records. Certain warranties require these records for service claims. Access the service history to ensure every scheduled service was performed, helping you avoid warranty issues.
• Be skeptical of unusually low mileage. The typical car accrues about 20,000 kilometres annually. A significantly lower reading may indicate rare usage, which can lead to various mechanical issues such as a weakened battery or corroded brakes.
• Steer clear of heavily modified vehicles. Modifications can void warranties and lead to unforeseen damages that are not covered.

How to Inspect a Used Vehicle

Never purchase a used car based solely on verbal assurances or incomplete histories. Always ask for a comprehensive Carfax report and conduct your own visual inspection for signs of wear and tear.