Guide to Buying a Car
There are actually quite a few aspects to consider when you purchase a new or used car. Some of them are to ensure that you have insurance protection, others can save you quite a bit of money.
Car Loan “Upside Down”?
Cars depreciate incredibly fast, and as a result, the amount that you owe on the car may quickly be far greater than its fair market value.
This can become a problem if your car is totaled after an accident or theft. If your car is a ‘total loss’, your insurance company is only obligated to pay for its fair market value. If the amount you owe on the vehicle is more than the market value, you might find that you need to pay additional unds out of pocket.
That’s what “gap” coverage is for. It pays for the difference between the market value of your car and the amount you have left on your loan. We absolutely believe that you should purchase “gap” or auto loan/lease coverage on every lease!
Related: All About High Risk Auto Insurance in Nova Scotia
Buying a Used Car?
If you choose to opt for a previously-loved vehicle, check resources like online listings, local dealerships or public auctions.
Deciding which vehicle you should buy depends on your needs, your budget and your personal preferences. Consider which features are necessities, and which are luxuries. Evaluate a car’s make/model, price, fuel economy, safety rating, size, driving experience and resale value.
The caveat with used cars is often that you can never be really sure what has happened to them. Wherever possible, obtain a vehicle history report and check for existing damage.
Related: Adding Your Teen as a New Driver on Your Car Insurance
30 Days to Insure?
Along comes your car dealer with some fabulous news: “You have 30 days to add it to your insurance plan,” he says. So there’s no need to fret… right?
Unfortunately, that’s not quite true. You have 14 days to add the new car to your policy. But there are far too many variables to give a simple rule explaining when the 14-day cushion applies and when it does not. For example, it might work when you trade a vehicle but it won’t be applicable when you buy an additional vehicle. Your safest bet: Don’t rely on the 14-day advice. Get your insurance now!