Globe Drive

Are you dreading your next car purchase? Don’t despair – there’s no need to hate it. Car shopping can be fun, fast and hassle-free with a little help from my beginner's 10-step survival guide to buying a car.

Step 1 – Do your research

A car is a major investment – probably the second biggest purchase next to your home. So don’t rush it. Do your homework before visiting a dealership. The internet is a great place to start – there’s valuable information right at your fingertips. Look up recent car reviews using GlobeDrive's search tool. Check out the annual auto issue from Consumer Reports, a not-for-profit organization, for their list of the Best & Worst Cars, which is published every April.

Step 2 – Narrow the search

If safety is a top priority, get crash-test results on your favourite vehicles. The Canadian government doesn’t publish the info, but our American counterparts do. For frontal, side, and rollover crash test results, visit the National Highway Traffic Safety Administration at or the U.S. Insurance Institute for Highway Safety (IIHS). The IIHS also has an annual list of the top safety picks in various categories from small cars to large SUVs.

Recall notices are posted at Transport Canada’s website. If fuel consumption is crucial, find a vehicle’s fuel economy figures as well as CO2 emissions in Natural Resources Canada’s Fuel Consumption Guide. You can even get the brochure mailed to your home for free by calling 1-800-387-2000. And every February, they pick and publish the EcoEnergy award winners for the most fuel efficient vehicles in Canada.

Step 3 – The best time to buy

A great time to buy a car is between August and November when dealers are anxious to move old models and make space for newer ones in the showroom. Late December is also a great time to get a deal – when others are holiday shopping and dealers are anxious to meet sales quotas.

Look for incentives and rebates online as well. Manufacturers often advertise deals like 0 per cent financing or new graduate rebates that will slash several hundred dollars off the price.

Step 4 – Sticker price vs. wholesale price: What’s the difference? Big bucks

The sticker price or MSRP is the price the dealer wants you to pay for a car. But often they’ll sell the car well below the sticker price. The key information is the wholesale or invoice price which is the actual price the dealer paid for the vehicle.

You can find that information for a small fee. For $39.95 you can get five car reports at Car Cost Canada. Likewise, Consumer Reports offers Canadian New Car Price Reports. It’s $29.95 U.S. for one report or $49.95 U.S. for four reports.

The key data, which includes the wholesale price, the sticker price, and the wholesale price of options and packages, is vital when it comes to negotiating. You’ll also get the latest information on national rebates and unadvertised incentives, too. According to Consumer Reports, buyers who use the service save about $1,900 U.S.

Step 5 – Go for a spin

Once you’ve narrowed your selection to a few cars, go for a test drive. Use your time and energy wisely and visit an auto mall with different manufacturers located at the same place. Drive vehicles, back-to-back on the highway and city streets. Park at a crowded mall, do a few U-turns, and test the windshield wipers – even if it’s not raining.

Step 6 - Negotiate the lowest price

Get bids from different dealerships – you can do this online or the old fashioned way, in person. And when it comes to negotiating, always bargain up from the wholesale price you received – don’t bargain down from the sticker price. Keep in mind, though, if the vehicle is in high demand you may have to pay closer to the asking price.

Step 7 – Avoid expensive options

Be wary of add-ons. Dealers often try to sell you costly extras like fabric protection, rust proofing, or an extended warranty – most of these items are overpriced and not essential. So skip them.

Step 8 – Ditching an old car?

Never mention a trade-in until you’ve agreed on a price. Also know the value of your trade-in by checking the Canadian Red Book, the Canadian Black Book or search AutoHound for comparable vehicle prices.

Consider selling your old car privately – you’ll likely get more money, but some extra headaches dealing with potential buyers. Donating your car to a charity such as Car/Heaven is another option. The program is designed to permanently remove high-polluting cars from Canadian streets. They’ll come to your home, tow away your vehicle for free, and give you a $60 charitable receipt.

Step 9 - Read the contract

Read the contract and ALL fine print. Make sure there are no extra charges or fees. And if a dealer makes promises like free oil changes for life – get it in writing. It’s your only safeguard.

Step 10 - Inspect your wheels

Walk around the outside of your new wheels. Search for scratches in the paint or dents on the body. Inspect the cargo area and interior, too. If you’ve paid for floor mats, double-check they’re inside. If repairs are needed, get it in writing so you can come back at a later date. Now, sit back in the driver’s seat and enjoy the ride!