Posted on Wednesday October 07, 2020

Your checklist for purchasing a used car

After weighing the pros and cons, asking your family’s advice and confirming it with a quick toss of a coin, you’ve finally decided to buy a used car! But how do you find the right vehicle, and how do you finance the purchase? We take a look what to consider and the financing options to make your purchase a winning choice.

How to tell if a car is in good condition

It’s a well-known fact: unless you dream of getting a 1965 Mustang Shelby, your car will depreciate over time! As soon as they leave the dealership’s lot, new vehicles lose value, hence the interest in used cars. Don’t hesitate to ask a trusted mechanic some questions, and take your time or you might end up behind the wheel of a lemon!

Mechanics or looks?

A car can be a way of expressing yourself personally. For example, a modified Honda Civic and an electric car don’t send the same message. A thoughtful choice should include an evaluation of features such as make, price, resale value, fuel consumption, vehicle size and driving experience.

There’s nothing like a road test to make sure a car is right for you. You’ll quickly find out if you feel comfortable driving it. Is your uncle Albert a budding mechanic? Invite him to join you on your little road trip. If the experience proves positive, be happy! You may have found a new buddy for your adventures!

Mileage: Has the car been driven (too) much?

Four kilometres on foot wears out your shoes! Although it takes a little more than that to wear out a car, mileage is one of the first things to look at when browsing for used cars. The older the car and the less expensive it is, the more mileage you can expect.

In general, choose a car that has between 50,000 and 100,000 kilometres on the odometer and that is likely to have been maintained according to the manufacturer’s specifications. Depending on the make and the maintenance performed, some vehicles over 150,000 kilometres may look—and even be—in good condition, but the risk of problems increases rapidly. Don’t hesitate to get all the information you need from specialized sites such as (Website in French only.)

Vehicle maintenance: Last but not least

Has the car you want to buy been properly maintained? Only a pile of invoices will prove it! While the owner is working to find all that important paperwork, ask about any required repairs in the short term and the reason for the sale.

If you want to know the history of the vehicle, such as whether it has been involved in an accident, the Carfax website is a very useful tool. But a proper investigation will include an inspection by a mechanic. If the problems detected are minor and do not jeopardize your purchase, they can be used as leverage to negotiate a better price!

Has the moment you’ve been waiting for arrived? If you’ve completed your evaluation and everything seems to be in order, find out about transferring ownership of a vehicle in New Brunswick, get the transaction done and get ready to celebrate.

Vehicle financing: Do your math

You should know that your car will eat up the biggest part of your budget, after the roof over your head. A survey of household spending conducted by Statistics Canada shows that in New Brunswick, about 23% of personal expenses are related to transportation. By choosing a used car instead of a new car, you’ll save money.

If you don’t want to end up eating Kraft Dinner like Lisa LeBlanc, do the math and take a look at what the numbers really mean. Evaluate the monthly payment and interest amount based on the term of the loan, in light of your down payment. The shorter the term of your loan, the less interest you will pay.

Car loan, personal loan or line of credit?

You can obtain a UNI car loan directly from participating dealers or used car dealers. Ask about personal loans offered by UNI. This type of credit is not strictly for the purchase of a vehicle and can be repaid early without penalty. For even more flexibility, opt for a line of credit. It will give you a great deal of financial flexibility for purchases, repairs and contingencies. What’s more, the interest applies only to the portion of the line of credit you use.

Vehicle financing calculator

Do you travel only a few kilometres every day to get to school? Or maybe you love the great outdoors and hit the road every weekend to explore the four corners of the province? You’ll need a reliable and sturdy vehicle if you want to be able to take on any road, regardless of the weather. For example, by choosing a fairly new small SUV priced at $12,500 with a $2,500 down payment and a four-year (48-month) car loan at 5.99%, your monthly payments would be $234.80. Spread over 60 months, they would decrease to $193.28. 

Regardless of your transportation needs, decide what best suits you and then sit down to calculate your monthly payments.

Now that you’re fully informed, it’s time to get in touch with people, scour the classifieds and scroll through the list of models posted online. By making a strategic choice, you’ll have plenty of money left over to celebrate the event with as many fragrant pine tree-shaped car fresheners as you want!