Learn about what to consider when purchasing a car, such as purchase options, budget, lifestyle, and more.
Car shopping is a fun process of exploring different makes and models to test driving cars. However, it is crucial that you pick a vehicle that will fit your lifestyle. When purchasing, financing, or leasing a vehicle, there are a few factors you need to consider: purchase options, budget, lifestyle, drive-train, safety features, technology, desired length of ownership, and purchase incentives. These factors will allow you to make an informed purchase decision and will allow you to get the most out of your vehicle. VINN is here to help you find your next car. Let’s learn about what to consider when buying a car.
One of the major steps in the car shopping process is deciding whether you will lease or finance the vehicle. Choosing your purchase option will help you determine your budget. Both purchase options offer pros and cons. For example, leasing usually has lower monthly payments, the option for no down payment, and no risk of future vehicle depreciation. In comparison, financing usually has higher monthly payments, but you eventually own the car.
Once you decide what purchase option works best for your situation, you can determine your budget. We recommend using the 20/4/10 rule for determining your car budget. 20/4/10 is a simple formula that allows you to determine how much car you can afford according to your income.
The 20/4/10 rule works best for the financing scenario: 20% down payment, with a car loan of four years or less, and spend no more than 10% of your monthly income on car-related expenses.
You can use the same formula in the leasing scenario with or without a down payment. For example, let’s say you decide to put no money down on your lease. You can have a lease term of four years and have your car-related expenses equal 10% of your monthly budget.
Learn more about the advantages and disadvantages of financing and leasing here.
Now that you have learned purchase options and how to find your budget. Let’s explore the other factors you should consider when choosing a new car. The main things to consider are lifestyle, drive-train, safety features, tech, desired length of ownership, and trade-ins and purchase incentives.
When picking the right car, you need to consider your use of the car. If you are looking for a fuel-efficient daily commuter car, then sedans are your best option. However, if you have children or are transporting multiple passengers frequently, you will most likely need a larger vehicle, such as an SUV or mini-van. In comparison, if you plan to use the vehicle for your work where you transport materials and machinery, a truck might be better suited. Identifying your use for the vehicle allows you to narrow down on a few specific models that will best fit your needs and overall lifestyle.
For example, let's say you plan to take summer road trips with your family of four. In this case, you want to make sure that you find a vehicle that has enough space, storage options, driver assistance, and safety features. The two most popular options for family vehicles are SUVs and mini-vans. These models can accommodate multiple passengers while still having extra storage and space for luggage and other belongings.
SUVs now come in many different models, from crossovers, mid-size, to large-sized SUVs. Each model of SUV offers various benefits such as seating, legroom, and trunk space. Whether you need seven-passenger seats or want to explore electric SUV options, there is an SUV that will fit your needs. To learn more about the different SUV models, check out VINN’s article on the difference between an SUV and Crossover.
Another important factor to consider when choosing a new car is the drive-train. Vehicles will either come with all-wheel drive (AWD), front-wheel drive (FWD), rear-wheel drive (RWD), or four-wheel drive (4WD). Picking the right drive-train will depend on where you live, driving habits, and use for the vehicle.
Therefore, if you live somewhere that experiences all four seasons, you will most likely need an AWD vehicle. AWD offers the most traction to handle snowy or wet driving conditions on the road. In comparison, FWD still provides decent traction for snowy or wet conditions; however, AWD is better suited for changing road conditions. Base model crossovers usually come with FWD, and higher trim levels will have AWD. In comparison, most trim levels for SUVs have AWD as the standard drive-train. FWD is standard in sedans, RWD is standard for most sports cars and pickup trucks, and you will only find 4WD in vehicles with off-road capabilities such as a Jeep.
Picking the right drive-train comes down to where you live—most places in Canada experience spring, summer, fall, and winter. Therefore, you should look for a vehicle with FWD or AWD. Also, don’t forget the importance of having a good set of winter tires for winter driving conditions.
Vehicles these days come loaded with safety features as standard in all trim levels. Some of the standard safety features include a forward-collision warning (FCW), automatic emergency braking (AEB), blind-spot warning (BSW), lane-keeping assist (LKA), and lane-departure warning (LDW). Other features that are also now standard are parking assist, rear-view cameras, and adaptive cruise control. Since most safety features are available in all trims, you can rest assured that a base-level trim will be a safe and reliable option.
As for tech, many technology features are standard in all trim levels. The standard tech features include GPS, Apple CarPlay, Android Auto, Bluetooth, wireless charging, voice controls, and heads-up display. Even though most vehicles come standard with Apple CarPlay, many cars do not have wireless Apple CarPlay. If your new car does not have wireless Apple CarPlay, check out VINN’s article on How to Make Your Apple CarPlay Wireless.
Your desired length of ownership is a crucial factor to consider when choosing between financing or leasing. When you finance a car, you should plan to own the car for five to ten years. In comparison, when you lease a car, you will drive that car for two to four years, depending on your lease contract. Therefore, leasing is probably the best option if you like to drive a new car every few years.
Another thing to consider is the future depreciation of the vehicle. When you finance a car, you want to ensure that it holds its value. If the car depreciates too quickly, you could have negative equity. Negative equity is when you owe more on the vehicle than what it is worth.
When you buy your next car, you may trade in your old car. Before finding a new car, you should consider the trade-in value of your old car. The dealership will quote you with the trade-in value of your car based on its condition, year, and model.
VINN Tip: Don’t worry about shopping at multiple dealers to find the best trade-in value. Let VINN do the work for you. Our vehicle expert team will help you get the best value for your trade-in when you use VINN.
Another factor to consider when finding a new vehicle is purchase incentives or rebates. With the push towards more sustainable choices, the federal and provincial governments have numerous purchase incentives for electric vehicles. Not only can you save money on vehicle maintenance, but you can also receive a monetary rebate for purchasing or leasing a plug-in hybrid (PHEV) or all-electric vehicle (EV). The federal government offers up to $5,000, and provincial rebate amounts vary by province.
Learn more about EV and PHEV purchase incentives here.
VINN Tip: Here is a list of all things car owners should know. Give it a read pre or post-purchase to make sure you are up to date on everything related to car ownership.
At VINN, we work directly with you to guide you through the process of finding a new car. Our vehicle experts will work with you to ensure that you get the best value for the right car, and you can also browse our inventory.
Happy driving! 🚘 Tell us about your favorite vehicles or fun car facts by tagging us on Instagram @vinncanada or Twitter @vinnauto.
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