Some of the hottest SUV you can go for, with a good plan backed by the dealers.

Many people tend to buy their first Car after they have there Housing and Job in good standing. The auto industry in Canada is vast and offers a string of options to purchase a car.

Decide whether you want to buy a new or an old car. There are free publications that you can pick up that will list the vehicles that are available for sale or you could look into various sites to catch the best deals. You may also visit the dealerships and try to make good your bargain skills. In which ever way you may adopt to find the vehicle you need it boils down to how much you can afford to pay.

Paying cash for you car

This is the best way to purchase a car and be absolutely debt free.

Buying a vehicle for cash would be the best option but do not use the money brought from Sri Lanka to do this. Vehicles keep depreciating in value in an unbelievable rate. A new car purchased for $20,000 would be impossible to sell for even $8000 after some years. The sytem is totally different from the car market back in Sri Lanka. Try to use funds that you have collected by working in Canada to support your purchase. Buy a car that you can afford.

Most Millionaires drive vehicles that are almost 2 years old. This they do for a very good reason. The value of a Brand new vehicles drops in price the moment you take the car out of a dealership and cruise it along a road. The value keeps dropping drastically as the car gets older and sheds almost 60% of it’s value within the first 4 years.

In Sri Lanka the prices of car keep appreciating and this sounds unbelievable to Canadians. But you and I know this and it’s no point harping about it.

Would you be happy driving a recondition vehicle that has just arrived from Japan that you saw in the morning at a car dealership in Colombo. Well you would drive it as if it’s a brand new car, right? But did you know that the car was previously used in Japan although it ends up in your garage in Sri Lanka as a new vehicle. If that was great to drive, why would you not drive a car which is slightly old which is way more cheaper than a brand new vehicle? I keep telling people that they spend 60% of the value of the car for just the polish and the glitter that will anyhow disappear when grease gets into the wheels the moment the car hits the road.

Financing Your car

This is the Second best way to purchase a car as it allows you to be debt free after a while.

By making a particular down payment you can roll into owning this car one day by paying equal monthly installments that will keep reducing the money you owe in way of a vehicle loan. If you can’t pay cash for your car, this would be the next best way for you to purchase a car.

After you decide on the vehicle you need to buy shop around for the best interest rates in town. Talk to banks but keep away from Finance companies. Dealerships usually have promotion that are geared to provide customers with very low rates. Find out whether those rates come with hidden charges. Some provide a discounted interest rate only for 3 months and after that period the interest rate rockets to a higher figure. Don’t hesitate to ask all the question necessary to help you make a wise decision. After all you are the one who’s going to be left with the car loan.

If you are self employed you may be able to deduct your taxes and you should consult your accountant for more accurate information in this area.

Leasing Your car

This will be similar to renting a vehicle – Borrowed feathers never shine!

Car dealerships allow people to lease vehicles which mean you get to drive the car out of the dealership with a very small down payment or perhaps zero down. You’re required to pay a fix amount on a monthly basis and you are required to carry insurance on the vehicle as per the demands of the dealer. You are also allowed a limited mileage for the period that the car remains in your possession. I call it the rent- a- car approach.

This method will never allow you to own a car. It will always be the property of the car dealership. If you are happy driving a leased car by all means be my guest but I assure you it will not be a wise move. However, many businesses purchase vehicles on this basis. You may be surprised to find out by paying a couple of hundred dollars more you may be able to finance the car instead of leasing it.