Advertisement photo of what would become my new wheels!

Well, I bought my first car yesterday, after weeks of research and phone calls. I learned this week that knowledge truly is power. I went from “being pretty sure I wanted an old Honda Civic” to saying

I’ll take a 2004 or 2005 Civic, or a Toyota Corolla or Hyundai Elantra between 2004-2006. They must have a manual transmission (preference), cruise (needed for Western Canadian highways, trust me), a/c, under 150,000 kms, have never been in any accidents at all and cost less than $12,500.

…and being able to explain why I made these choices.

I learned that the best value in vehicles lies in use between 5 years old and 10 years old. I looked up many makes and models, and for various reasons, the Civic, Corolla and Elantra have the best bang for your buck. In this, I factor in depreciation, maintenance, reliability and initial cost. I learned that AutoTrader was sketchy at best, and that Kijiji was my best friend. I learned to avoid 2006 Civics, because it’s the first model year of the new generation. That means there are still many kinks to work out. Not surprising, there are many 2006 Civics on the market as we speak.

You see, when I’m spending this kind of coin, I don’t screw around. I went from knowing very little about how to purchase a new or used vehicle to being able to kick ass at the dealership. I recognized and discovered so many traps that dealers set in order to take my money. It’s a good thing I was in Punta Cana a few weeks ago – the vendors there hardened me for what was to come.

I narrowed it down to 6 cars on Kijiji between Edmonton and Calgary, plus getting quotes for new cars at dealerships. I personally didn’t want a brand new car, but was somewhat coaxed in taking a look into it, given that 0% financing on a new car is much better than what my bank is killing me with for my current loan. But new cars are way overpriced, plus I had to pay GST at the dealership, as opposed to only PST in a private sale, which happens to be 0% in Alberta.

In the end, I went for my first choice out of the private sellers: a 2006 Corolla S, absolutely loaded, with, get this, only 24,500 km on the odometer. I learned to check the CARFAX of all private sale cars. to make sure nobody wrote it off in the past, or played with the odometer. The CARFAX came out clean. I asked the seller if it was worth my time to go if my bottom line was $1000 less than his asking price. He agreed and we met. I did everything The Internet told me to: how to check the body, signs of covering up damage, asking all the right questions to the seller, gauging their response. Test drove it, actually knowing what I’m looking to feel/see/hear. Took it to Canadian Tire for a pre-purchase inspection, offered $250 less than my stated max. He took it.

Just before I paid for the car, one of the Toyota dealers here gave me a call back. I told him what I was about to buy and what I was going to pay for it, and asked if he could beat it, which I knew he couldn’t. He said he didn’t trust my private sale car, and paid for a CARFAX of his own. He then made me a decent offer, because we learned that the CARFAX check showed my prospect car as having impeccable history. So buddy offers me this: (http://sherwoodparktoyota.com/vehicles/?action=pre) 2007 Corolla. Normally it goes for $18,000, and he offered me to take it for $13,500+tax+fees. Quite the drop, eh? Makes it good to know for the future… Regardless, I went for the private sale for four reasons: 1) it was initially cheaper 2) Even with financing, I’d have wound up paying more because I am first taxed 7% GST at a dealer, and then I’d have been paying 5.75% in financing…I’d have paid interest on tax! 3) there are 50,000 fewer kilometers on my 2006, 4) the  dealer’s car was an automatic.

It was a no-brainer. It also shows that the car I bought could fetch around $18k if a dealer were selling it. All that time I spent learning about Elantras, Civics and Corollas really gave me a boost in confidence in dealing with dealers. I mean, I got a guy to drop his price by $5000 over the phone! Being a specific about what I wanted, I was confident in saying “no” often.

When they didnt have what I wanted on the lot right there, they’d say: “So, would you like to take a walk around to find another vehicle you may like?”

“Nope. not really. You know what I’m looking for. I’m sure you can check your inventory and those of nearby Hyundai dealers. It’s far too cold outside!” Also knowing the fact that I can’t exactly see whats inside the car by looking at it from the outside, other than the color and transmission.

or they’d say something like: “Why would you buy used when you have the assured safety of a warranty with a brand new vehicle? What if the transmission of a used car with no more warranty went out on you?”

“I would HOPE to not need to use that warranty in the first few years of the car’s life. Are you saying that after 5-6 years, the transmission will go out on me if I buy your new car?”

“No! No! Not a Hyundai, but the others!”

“Let me get this straight, you’re telling me that a Honda Civic, or Toyota Corolla has a greater chance than your car at having a faulty transmission? With respect, sir, I don’t believe that.”

I also learned that being vague for budget and payments really worked in my favor. Telling them I could pay cash upfront for any used car, or that I’d choose 0% financing for a brand new car, tipped things my way. Telling them it depended on the year and mileage, my budget was flexible, but that I was only paying what I thought it was worth. It didn’t take me long to get them speaking in “price on the road” instead of “price per month”. Thus avoiding the situation: “In total, you car will be $19,300, which makes your payments at $439.54 per month for 48 months.” (That actually comes to $21,097.92.)

Anyway. I learned that doing my research has probably saved me between $5000 and $8000. Even though I went for a private sale, learning to tame a car dealer is probably what I’m most proud of. It was a fantastic experience and I wish everyone could experience it..