“But I think it’s a high-quality used car pool,” Bettencourt said. He would only buy privately if an inspection by a mechanic was a part of the acquisition contract.
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Electric vehicle subsidies
As for electric vehicles, the federal rebate only resulted in January, but provincial subsidies are still in place in British Columbia, Newfoundland and Labrador, Nova Scotia, Yukon, New Brunswick, Prince Edward Island and Manitoba, Bettencourt identified. Used cars are still a worthwhile option for this segment, he added.
“The resale value of electric vehicles tends to depreciate very quickly, so in some ways there is more incentive to buy an electric vehicle without a lease or a lightly used electric vehicle because of the high depreciation,” Bettencourt said.
How to cope with common sales tactics
When it involves the shopping experience, Wallcraft says a salesman at a retailer will likely ask what monthly payment you’ll be able to afford — but she calls that query a trap.
“What the salesman is doing when they ask you this question is they’re trying to find the most expensive car they can get you to buy,” Wallcraft said, “and offer you a really long financing term so the payment is monthly .” low enough that you would be able to afford it.”
Lately she’s been hearing about nine- and 10-year financing terms, that are relatively recent, but she expects them to grow to be more common – especially given the shortage of reasonably priced entry-level cars in the marketplace for young people to purchase.
The problem with long-term financing on an asset that quickly loses value is that serious problems could arise or your needs could change before you fully own the vehicle, Wallcraft said. If your automobile is totaled, your lifestyle changes, you progress, get right into a relationship, or have children, you may still be making payments on a automobile that does not be just right for you.
If you continue to owe money on the automobile when it needs to get replaced, “that’s how you fall into the trap,” Wallcraft said. “Because then you definately go to the dealer and so they’ll say, ‘We can transfer what you continue to owe in your financing to your next automobile.’ Well, now you owe lots more in your next automobile, and it can take you that for much longer to get back afloat.”
