{"id":783333,"date":"2019-05-27T12:18:30","date_gmt":"2019-05-27T16:18:30","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=783333"},"modified":"2025-04-15T02:51:33","modified_gmt":"2025-04-15T06:51:33","slug":"used-car-buying-tips","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/used-car-sites\/used-car-buying-tips","title":{"rendered":"What to consider when buying a used car"},"content":{"rendered":"

There are many questions to ask when buying a used car if you want to find the best fit for your lifestyle and budget. Find out more about how to buy a used car and what to look for when you shop. You can also consult our used car checklists for inspecting and buying a used car to make sure you have all the information you need before you settle on the right vehicle for you.<\/p>

How to buy a used car in 6 steps<\/h3>

Follow these 6 steps to buy a used car from a dealer, private seller or online broker.<\/p>

1. Figure out your budget<\/h3>

Make a list of your income and expenses to figure out how much you can reasonably afford to spend before buying a used car. You should also factor in the total cost of car ownership before committing to a vehicle since this cost may be much higher than the baseline price of a used car with a private seller or dealership.<\/p>

As a general rule of thumb, you should aim to spend only 10% to 15% of your net income on buying a used car.<\/p>

Expenses to consider when buying a used car<\/h4>

Consult the table below to make sure you can afford the total cost of buying a used car:<\/p>
Expense<\/th>Typical cost<\/th><\/tr><\/thead>
Purchase price<\/strong><\/td>$1,000 to $40,000<\/td><\/tr>
Interest rates<\/strong><\/td>Annual APR from 8%<\/td><\/tr>
Sale tax<\/strong><\/td>From 5% to 15%<\/td><\/tr>
Car insurance<\/strong><\/td>$700 to $2,000 per year<\/td><\/tr>
Scheduled maintenance<\/strong><\/td>$500 to $700 per year<\/td><\/tr>
Emergency repairs<\/strong><\/td>$50 to $6,000<\/td><\/tr>
Gas<\/strong><\/td>$50 to $200 per month<\/td><\/tr>
Registration<\/strong><\/td>$30 to $150 per year<\/td><\/tr><\/tbody><\/table>

Actual costs will vary based on factors such as the type of car you drive, your driving record and your province of residence.<\/em><\/p>

2. Settle on where to buy your car<\/h3>

Think about whether you want to buy a used car from a dealership, a private seller or an online broker. The route you decide to take will affect the process you go through when buying a used car. It\u2019s usually more expensive to shop with a dealer because it\u2019s safer and more convenient. You may save money with a private seller or online car broker, but you\u2019ll usually take on more risk.<\/p>

Buying a used car with a dealership vs private seller vs online broker<\/h4>
Seller<\/th>Where to find<\/th>Pros<\/th>Cons<\/th><\/tr><\/thead>
Private sellers<\/td>Sites like Kijiji, Craigslist or Facebook Marketplace<\/td>
  • Better deals<\/li>
  • More choice<\/li><\/ul><\/td>
  • Higher risk of fraud or a defective vehicle<\/li>
  • More work to shop around<\/li>
  • Harder to test drive<\/li>
  • Difficult to get financing<\/li><\/ul><\/td><\/tr>
In-person dealership<\/td>Search Google for local dealerships in your area and visit in person<\/td>
  • Local offers<\/li>
  • Lower risk of fraud with legitimate dealers<\/li>
  • Easier to get financing<\/li>
  • Test drive several cars at once<\/li><\/ul><\/td>
  • More expensive<\/li>
  • Less choice (only what\u2019s on the lot)<\/li><\/ul><\/td><\/tr>
Online car broker<\/td>Sites such as Auto Trader, CarCostCanada, Carpages.ca and Canadian Black Book<\/td>
  • Larger selection<\/li>
  • Easier to get financing<\/li>
  • Access used cars from across Canada<\/li><\/ul><\/td>