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If you’re currently driving an old junky car and are saving up for something a little more fancy and dependable, how will you know when you’ve saved enough? Ultimately, it depends on your financial beliefs, but I hope to help you make your decision a little easier.
How Much is Your Car Costing You Per Year?
Before you start to daydream about the new car you’re going to buy, you should first figure out if it’s really necessary. On average, a slightly used vehicle will cost you between $500 and $1,000 per year with necessary maintenance and repairs. If you divide your total expenses by the number of years that you’ve had the car and you’re average less than a thousand bucks in repairs, then I’d say your car is still in fine running condition. If, however, you’ve had to replace multiple items over the past 6 months that robbed over two grand from your pockets, then perhaps it’s time to start looking for a replacement.
Do You Have Enough Money?
Some people like to pay for their cars with cash, while others feel more comfortable putting a small amount of money down and making payments each month. Whatever your preference, consider this as a rule of thumb in your next purchase. If you’re going to buy a car with cash, it’s best to have at least $2,000 left in your bank account after you make the deal.
Many times, people buy cars that they think are going to be dependable and they end up costing them over a thousand dollars in the first couple months of ownership. No matter how old or new your car is (or whether they’re autos in Canada or the US), it might need some immediate repairs, and sometimes there’s just no way to tell when you make the purchase.
If you decide to purchase a car with a small amount of money down, I suggest that you keep even more than $2,000 in your savings account. Since any car can develop issues (again, old or new), even that newer model car you’re looking at might need some repairs soon after your purchase. And, since you are making payments each month on this vehicle, you have a little less liquidity in your cash flow. So, instead of keeping just $2,000 in your account, I would suggest that you set aside $3,000. I know, I know, it sounds like a lot of money, but if your car breaks down and has to go to the repair shop, you suddenly have to rent a car AND pay for the repairs, which could easily total $2,000.
Go Ahead, Get That New Ride
If you find that car of your dreams and you have the appropriate amount of money available in your bank account, then go ahead and buy that new ride! Cars are certainly fun to own and operate, so make sure you make the most of your ownership experience. Your ride might break down once in a while, but that doesn’t necessarily mean it’s a lemon. All cars have their issues from time to time. That’s just what happens. Keep up with the maintenance and watch your gauges. Hopefully, you’ll be able to avoid that money-pit car.
Money Saving Tip: Get a free invoice price report and complementary quote from Unhaggle in order to negotiate the best deal for yourself. If you want to go a step further, Unhaggle will do the negotiating on your behalf for a small fee of $99. It’s works like a reverse auction. Just choose a type of car and Unhaggle will reach out to local car dealers who will compete with each other to earn your business. They’ll provide you with transparent car prices so you can easily figure out who’s offering the best deal. You can compare these offers anonymously with no obligation to buy.
Importing a car into Canada may seem to be a daunting task but it really isn’t too difficult. This past summer I imported one of the 2011 Subaru Outbacks and the process was incredibly smooth. In addition we saved over $9300! In this post I will detail how toDIY import a car to Canada from the United States.
It is wise to determine if the manufacturer honours the warranty for your chosen vehicle once it has crossed the border into Canada. Not all manufacturers are on that list, such as Subaru. Some manufacturers have the owner pay for warranty expenses out of pocket and then apply for reimbursement.
Find out if the vehicle you will purchase is subject to the high emissions excise tax. NRCAN is a great place to look this up as these taxes can run $1000-$4000 on inefficient vehicles.
If you are buying used it is worth investigating the vehicle’s history and background. There are numerous online services that allow you to check the VIN number. The peace of mind is worth $20-30.
Find out if you will have to pay duty on the car. Cars manufactured in North America are not subject to duty tax but those built outside North America are subject to duty under NAFTA. Duty is often 6.1% of the value of the vehicle. Even with duty, you can often still save thousands of dollars importing. Industry Canada can help you look up the vehicle you are buying.
Arrange your currency exchange.
Arrange payment, vehicle pickup or delivery. Delivery or the use of an Importer can make quite a dent in your savings, so carefully evaluate if you want to use these services. Some dealerships accept payment on delivery if you pick the car up in person. It is also wise to request a temporary licence that can be taped to your rear window. Don’t leave without an outstanding recall letter (if the dealership will provide one).
Fax in a copy of the vehicle title to the U.S. border crossing where you intend to cross. This must be done 72 hours in advance of exporting the car.
Arrange to get motor vehicle insurance for the car if you intend to drive it back to Canada.
Plan your trip to the dealership where you intend to buy the car. Enjoy the journey.
Meet with the dealership. Double check that the VIN on the bill of sale matches the one on the vehicle. There is usually a sticker on the driver side door that has the VIN on it. Complete the financial transaction.
Drive to your desired U.S. border crossing and identify yourself with your passport and licence. The officers will check that the title, VIN and bill of sale. They will then release the title to Canada Customs.
Drive to Canada Customs and identify yourself with your passport and license. Inform the officers you are importing your new car and fill out the Vehicle Import Form 1 (It will be provided).
You also pay the 5% GST (QST in Quebec, GST portion of HST in Ontario and British Columbia). Your rewards credit card should handle these payments as most Canadian Customs offices won’t take cash or cheque payment.
Customs will release your Form 1. Keep all your paperwork available in case you are pulled over, which is possible if a police officer sees a car with no plates.
You will now pay the $195+HST RIV fee, $100 A/C tax (if the car has A/C), duty (if so required) and possibly the aforementioned emissions tax.
Within 10 days of submitting your Form 1 Canada Customs will mail you the Form 2 – Federal Inspection.
You have 45 days from the day you submitted to get any required modifications done to your vehicle (common items include metric speedometer updates/display, daytime running lights, child tether anchorage) and have your vehicle inspected at Canadian Tire.
At the inspection ensure you have all of the documentation you’ve accumulated. The Forms 1 and 2, letter of recall, title, bill of sale are all required.
The techs at Canadian Tire will conduct their inspection. This will take 30-60 minutes. The inspection is included in the RIV fee you paid at the border.
If the vehicle passes inspection, skip ahead to 25.
If the vehicle does not pass inspection, determine where you want the upgrades done and get the work completed withing 45 days.
Take your paperwork to the provincial licencing office and register your car. You will pay provincial tax at this point. Use your rewards credit card here as well.
A number of steps to take, but to save 20-30% on your vehicle purchase, well worth it. We will definitely DIY import a car to Canada again.
So are you shopping for a new car? Know what the dealer paid, get secret rebates and big discounts. It is wise to educate yourself about the pricing in Canada prior to looking to the south – you never know how much of a discount you will get by importing the vehicle until you really understand how Canada pricing works. Then take a look @ Autos.com to see invoice pricing in the U.S. Be informed.
Money Saving Tip: Get a free invoice price report and complementary quote from Unhaggle in order to negotiate the best deal for yourself. If you want to go a step further, Unhaggle will do the negotiating on your behalf for a small fee of $99. It’s works like a reverse auction. Just choose a type of car and Unhaggle will reach out to local car dealers who will compete with each other to earn your business. They’ll provide you with transparent car prices so you can easily figure out who’s offering the best deal. You can compare these offers anonymously with no obligation to buy.
As an investor in General Motors in the middle part of the last decade, I watched in anticipation as the company announced plans to come out with an all electric car. Hippies everywhere rejoiced, anxious to drive a car that would minimize their footprint on the environment. They probably celebrated by eating some granola and wearing something made of hemp. Oh, and don’t worry about my General Motors investment. I sold well before they went bankrupt, making a nice profit.
Anyway, as they went through and ultimately reemerged from bankruptcy protection, plans for their electric car continued. They came up with a name, continued to test the concept, before finally deeming the Volt ready for consumers in late 2010. A year later, GM had ramped up production enough to expand the Volt availability to across the United States and Canada, as well as in parts of Europe and China.
Buying a car is a big purchase and many people turn to loans in order to help them to buy a vehicle. Whether you are borrowing money for your car or paying cash, consumers often agonize over what the right choice is.
As part of their deliberations, one area that consumers are more concerned with than ever before is the question of whether a green car sustainable transportation is a good investment or not.
The Green Car Debate
Traditionally, green cars consisted of either electric cars or hybrid cars. Electric cars often could not travel long distances without needing to be recharged and were considered to be impractical and inefficient. Hybrids were the first real viable option on the market, but in many cases, these did not end up actually saving people very much money.
Early hybrid vehicles typically cost more to purchase than their non-hybrid counterparts. Gasoline was still required at times and the cost of upkeep and powering the cars, combined with the higher cost of purchase, made many of the early hybrid models have about the same value in terms of finances as non-hybrid vehicles.
This meant that people who were solely interested in saving money on fuel might not have received any significant value or benefit from these hybrids, since they didn’t end up saving any cost. Those who were interested in hybrid cars because of the environmental impact, however, found value in what they were doing for the Earth. Likewise, some hybrid buyers found value in the fact that they were not contributing to a dependence on foreign oil (or at least were contributing less).
Green Cars Today
Today, there are many options for people interested in a green choice. Almost every car maker has some type of hybrid model, from budget vehicles to luxury vehicles. These cars typically take one of three forms – full assist, assist or mild hybrid vehicles.
Full assist cars can run on either gas or on electric, while assist hybrids cannot depend only on electricity to run. Mild hybrids run on gas but have special motors that let them turn off when the light is red or the car is stopped and then turn back on very quickly.
Hybrids aren’t the only option in the green car market either. Many people have chosen to save on gas and save the Earth by choosing smart cars or mini cars that are much smaller than standard vehicles. While these don’t necessarily all have hybrid technology, their small footprint is environmentally friendly.
While the calculations as to whether a hybrid will actually save you money or not will depend on a number of factors, other “green” options such as smaller, smarter cars unquestionably will save money over the life of the car. This is when compared to a larger and more gas guzzling vehicle such as an SUV.
In any case, whether you are actually saving cash or not, there can be value in driving a hybrid because you are doing your part for the Earth. You may also benefit from tax incentives and special rules for drivers of hybrid or green cars that also contribute to the value of your purchase.
We are not a professional or financial advisors. Articles posted on this site are informational opinions only. Please make your own financial decisions based on personal research or see a financial advisor.
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