First Time Buyer’s Guide

Buyer Resources/First Time Buyer’s Guide

A Handy Guide with Expert Tips For First-Time Car Buyers

Buying your first car is an overwhelming experience, filled with a mix of excitement and, let’s face it, a bit of nervousness. It’s mainly because it’s not just about choosing a new set of wheels; instead, it’s more about making a thoughtful financial commitment that will impact your everyday life. Whether you’re exploring different brand-new SUV, sedan, truck, EV, coupe or wagon options or looking for affordable and reliable used ones, the process of finding the right vehicle can get a lot to absorb with so many choices to consider. But don’t worry—the experts at Cars.ca have brought you a handy first-time car buyer’s guide, helping you navigate the journey easily, step by step. From finding the right vehicle to managing your budget and getting smoothly through the dealership process, we’ve got the right tips and advice you need to ensure an easy-peasy first car purchase where you feel you have come away with great clarity and confidence!

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How to Find the Vehicle That’s Right for You

The first step to buying a vehicle is deciding which one makes the best fit for your lifestyle, budget and needs. To help you further with this, here are some key factors to consider:

Know-Your-Needs

Know your needs and assess them wisely: What exactly do you want? A perfect family-friendly SUV, a fuel-efficient daily commuter, a towing giant or a beast-like off-roader? Ask yourself all these questions and figure out what you need in a vehicle. This could be anything from comfort and luxury to efficiency and more. Think about how much space you need, how many passengers you will typically carry and what features you value the most, such as safety, driver assistance, interior amenities and towing capacity.

New-or-Used

Is it going to be new or used? Decide whether you want a new car or a used option. New vehicles come equipped with modern features to make your rides more immersive, comfortable and include a warranty from the manufacturer, usually resulting in lower maintenance costs. Conversely, used cars are priced to reflect the depreciation that comes once the new vehicle leaves the lot, making them a wise investment for the price point. Both options serve different purposes to different owners, so make a wise decision by considering factors like your budget, service requirements, warranty, etc.

If buying a pre-owned vehicle, see what warranty options are available, assuming no transferable warranty, and if there is a transferable OEM warranty, make sure that there's no fine print for second owners. I know a couple of OEMs that don't provide the same coverage for second owners.

— Ryan Peacock, Technical Support Analyst, EDealer

Don’t forget to research: Always use different resources, such as expert ratings, reviews and comparison tools, to explore desired makes and models. You can also browse websites or automotive critics like Consumer Reports or Edmunds to gain valuable insights into a car’s fuel efficiency, reliability and overall performance. Moreover, when buying a used car, always review its CarFax report to ensure you know the complete history of the vehicle.

How to Know What the Budget Should Include and What to Factor Into It

Of everything, setting your budget for your first vehicle is one of the most critical parts of the whole car buying process. So, how do you make a wise decision on that? Take a look at the following advice:

Financing

Know your price range: Don’t go too crazy with your wishes and demands. First, figure out how much you can afford to spend genuinely. A common rule of thumb to remember is that lending experts generally recommend that your monthly car payment should be no more than 15% of your monthly take-home salary.

Consider upfront costs: When deciding your budget for buying your first car, don’t forget to consider other upfront costs, such as taxes, necessary accessories such as winter wheels or tires, maintenance costs and insurance. Make sure to factor these costs into your long-term budget to avoid future surprises.

Understanding what 'Total Cost of Ownership' for a particular vehicle looks like was always very helpful to me when I was selling cars to different consumers. They often get caught up in an interest rate or even the payment but fail to ignore the cost of insurance, gas, fuel economy, and future average maintenance costs, and end up blowing their budget or spending more money on a car that they believed was a better deal when only focusing on the payment or total purchase price.

— Daryl Marritt, National Dealer Development, EDealer

Financing and interest rates: If you’re planning to finance your car, look closely at the interest rate on the loan, as well as the length of the repayment term. Keep an eye on offers like 0% financing or no finance payments for a limited time to save more. In addition to that, always compare interest rates and loan terms to ensure you’re getting the best deal.

Just because a certain finance rate is advertised doesn’t mean you can’t opt to buy down the rate with the right lender to lower your monthly or biweekly payments to make a purchase work within your budget. This can be done in a few different ways, usually by either adding on additional accessories, warranties or supplemental treatments (like undercoating or protective film application) or by paying the difference in the interest up-front.

— Melina Beeston, Director of Digital Media, EDealer

How to Navigate the Dealership and Purchase Process

Once your budget is set and you’ve decided the kind of car you want, it’s time you find a dealership that serves your needs. But this can be tricky, so find out how you can navigate to it:

Price-Negotiation

Know what you want: When you’re browsing dealerships, have clarity on what make and model you’re interested in, considering your budget. Get ready to explore multiple dealerships to find the one that fits your needs and, most importantly, budget the best.

Price negotiation: Don’t shy away from making an offer below the asking price because car dealerships expect negotiations. Always know the fair market value of a car and do your research properly to be in a stronger position to negotiate better.

I would first look at the OEM sites for offers. Then, I will look at building the model I want and see how I would like it equipped (what is standard and what add-on would I need). Then, I would search for who has the exact unit I am looking for. I will suggest either calling or emailing that dealership about said unit before going in. So, as I will be going into the dealership, I already know the rates, prices, payments and if it’s actually available. [...] Often times when dealers are selling with OEM incentives added, the dealer is still selling at “full price”; the amount is just backed by the OEM, meaning that there is often some more margin available. It does vary wildly from makes and models, but two different units at the same price can have very different margins.

— Dave Pleau, Dealer Performance Manager, EDealer

Contract

Review the contract carefully: Before signing any papers, review the contract thoroughly. Check for all the terms you agree upon, including financing/leasing details, purchase price, service costs, warranty and other additional fees. Ask for clarification if something seems unclear.

Customers should do their due diligence when it comes to the final paperwork. Thoroughly review the final bill of sale during the delivery process, and don’t be afraid to ask questions about what each charge entails. While it’s nice to think that deceptive dealer practices no longer exist, customers should still practice caution. Most provinces/territories have consumer protection agencies that work to curb such behaviour.

— Dean Mamiit, Senior SEO & Content Strategist, EDealer

Review warranties and add-ons: Many dealerships offer extended warranties and additional features, so make sure you consider them wisely, as they may end up adding to the overall cost of your vehicle. Keep things simple, evaluate all the add-ons, and decide whether or not they’re necessary for you.

Words of Wisdom—Final Thought!

Your first-ever car-buying experience should be a memorable milestone, not a stressful experience. By following these steps—finding the right vehicle, determining your budget, and navigating the dealership process—you can get closer to making a smart purchase. Take your time, research thoroughly, evaluate all the available options, and most importantly, trust yourself to make a decision that’s right for you!

Find Your First Car at Cars.ca

Finally, going to buy your first car ever? Look no further than Cars.ca, an ad-free marketplace that offers a wide choice of new and used vehicles especially tailored for first-time buyers. We ensure that you find the perfect match for your needs and budget by offering comprehensive vehicle listings from dealerships across the country. In our user-friendly platform, you can browse our Cars Confidence price badging (Comparable Price, Competitive Price, and Can’t Miss Price), detailed listings and helpful buyer resources to explore various makes and models and compare prices to make the right decision. Why wait? Start your journey to finding your first car, today with Cars.ca!

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