10 Questions to Ask Before Buying a Used Car

If you are in the market for a used car, there are several things you need to consider. Whether this is your first time buying a car or your first time buying a used vehicle, there is a process to follow to ensure you find the right vehicle for your needs and lifestyle. Buying a used car can feel daunting, which is why we're addressing the ten questions you need to ask as you start your search.

What Kind of Car Do I Need? 

Summer is around the corner, so how about buying a Jeep or convertible to cruise down the highway in style? Or, on a more practical note, are you looking for a minivan for the kids or a sedan to get you to work? If this is your only car, it may be best to consider your practical needs. If, on the other hand, you are purchasing a second vehicle for recreational use, you can pretty much choose what you like.  

Where Should I Buy My Car?

If you are looking for a used car, it is best to go to a used car dealership with a large inventory. This way, you can compare several vehicles to get the features you need and also find a great deal. There are many car dealerships in Edmonton, so take a look at the customer reviews to find a dealership that you can trust. When you look at the reviews, there are several things you should look for:

• Lots of five-star reviews

• How the customers rate the sales associates 

• If the reviewers are happy with their purchase

• How the company responds to any poor reviews

Customer service is key when buying a used car. You want to look for a qualified team of sales associates who will work with you to meet your needs and help you get approved for a car loan.

Can I Take My Car For a Test Drive? 

To ensure you choose the right car, we recommend that you take the car for a test drive for at least 30 minutes. During this time, try some highway driving and navigate through traffic with frequent stops to test the brakes. It's also advisable to test drive multiple cars to determine which one suits you best.

How Much Can I Afford to Spend?

Before going to the dealership, it is important to determine the amount you can spend on a car. Calculate your monthly income and expenses to determine what is affordable for you. Don't forget to factor in gas, insurance and maintenance costs into this monthly expense. Also, be careful to leave a little wiggle room for other incidental costs that may arise unexpectedly during the month. 

Once you know how much you have to spend, use our car loan calculator to find out the value of the vehicle that you can afford. Alternatively, if you have already browsed our selection of cars online and have spotted a car you like, you can use the car loan calculator to find out your monthly payments. 

Can I Trade-in My Old Car? 

Absolutely! We are happy to take trade-ins and offer a fair price that can be used against the purchase of your new vehicle. The trade-in process is easy, and you can get an estimate of how much your car is worth by using our trade-in tool. To use the tool, you need the VIN number of your vehicle. 

What Is a VIN Number, and Where Can I Find It?

The VIN number is a special identification number that is unique to your car. This allows you to track your car if it is stolen and also access important information about recalls, registration, accidents and repairs made to the car. There are usually three places where you may find the VIN.

• On the driver's side dashboard near the windshield

• Engraved on the engine block under the hood of the vehicle

• On the driver's side door frame near the door latch

Where Can I Get My Car Serviced?

Your new car undergoes a thorough quality check with our qualified service technicians as soon as it enters our lot. However, once you purchase your vehicle, it is essential that you service it regularly to keep it running smoothly. Our technicians will perform a number of service tasks, including:

• Topping up the fluids, including brake fluid, engine oil, radiator oil, and windshield wiper fluid

• Tire check and tire rotation for safety and alignment

• Brake check for safety

• Checking the air filter for indoor air quality

• Examining the belts and hoses

• Checking the battery

Performing regular maintenance on your car can significantly reduce the likelihood of expensive repairs and ensure that your vehicle runs well for many years to come.

What Are the Additional Costs of Owning a Car? 

On top of the costs of buying the car, you also have to factor in interest payments, insurance, gas and car maintenance. 

Interest Payments

Depending on the type of loan you get, the interest payments can be as low as a prime rate if you go through a bank or credit union or closer to 50% with a bad credit car loan.  

Insurance

You must take out auto insurance when you buy a new car. The cost of the insurance varies depending on the cost of the car, with higher-priced vehicles costing much more in insurance than a lower-priced car. If you are working with a tight budget, keep this in mind when choosing a car. 

Gas

Although the price of gas tends to fluctuate over time, it's best to keep higher prices in mind when working with your budget. 

Car Maintenance and Repairs

Allocate a few hundred dollars towards regular service costs but keep repairs and parts replacement in mind. Tires, brakes and batteries are just a few of the parts that need to be replaced over time, so keep a contingency fund aside to pay for them. 

Where Can I Get a Loan?

Many car dealerships can arrange car financing loans onsite. At Insta Auto Solutions, we work with several lenders who will submit only a soft credit inquiry during the pre-approval process so we can get you the best interest rate. Keep in mind that soft credit inquiries do not affect your credit score. 

If you would like to get started on the pre-approval process, fill out our online form to find out how much you qualify for and the terms of your auto loan. 

Can I Still Get a Car Loan With a Bad Credit Rating?

We understand that your financial situation may make getting a traditional loan from a bank difficult. Traditional institutions often look at your credit history and may reject a loan if you have a low credit score. The good news is that if you have a bad credit score, it is still possible to get auto financing with us. We recommend taking out a bad credit car loan in the following situations:

• You are a student with a limited credit history

• You are a newcomer to Canada without any record with the credit bureaus

• You have a low credit score

• You have declared bankruptcy

What Are the Interest Rates? 

A car loan interest rate with bad credit tends to be much higher than the rates offered by banks and credit unions. When you take out your car loan, it is important to make your loan payments on time so you don't incur even higher interest rate fees.

Do I Need a Downpayment To Get Approved for a Loan? 

While it is helpful to put a down payment on a new car, it is not necessary to do so. If you can make a downpayment, we recommend you do so for the following reasons:

• A lower loan amount means your interest payments are lower, so you can save money in the long run.

• Lenders view borrowers who provide a downpayment favorably and may offer better loan terms with lower interest rates.

Apply For a Bad Credit Car Loan in Canada

Bad credit car loans are a great way to purchase a new car if you have a bad credit report. If you make your loan payments on time, these loans can also help you to improve your credit score, which offers better loan financing prospects in future. 

If you have questions about purchasing a new car or securing a loan, contact us! We are committed to helping you find the perfect car, and we will work hard to get you approved for a car loan in no time!