Purchasing a car and its insurance (soon)

fred2

(The vehicle picture is not my actual car – I blog about my personal experience but I still save something for my private life. LOL)

Before planning to purchase your car in Canada, you should make sure that you can still live within your means once you buy one. Owning a car is like having a baby too. A big chunk of your salary goes to your car amortization, gas, insurance and maintenance. I personally do not recommend you to buy one if you’re just starting your life here unless you can buy it in full AND you have at least a year of savings for your car-related expenses. I don’t care if you have tons of settlement funds but what is important to me is your steady monthly cash inflow.

When I first got here I listed down the factors to consider if I’ll buy a car (or should I say if I can afford it):

  • Consider if I can afford the monthly payments (all car-related expenses)
  • Feasibility of commuting to everywhere by using public buses and taxis
  • Consideration in buying a new or used vehicle
  • Best Car Loan payments – where is the lowest interest rate?
  • Detailed research of prospective car
  • Best offer of car dealers – they always have different perks like free winter tires or unlimited change oil for a certain period of time
  • Insurance quotation – in Canada, you have to purchase it separately as opposed to what I was accustomed to do in the Philippines

To be continued…

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