New Brunswick Car Buying Guide

Buying a car in New Brunswick involves several steps, from setting a budget and researching models to test-driving and registering the vehicle. Here's a step-by-step guide to help you navigate the process:

- Determine your budget: Consider your income, down payment, interest rates, loan terms, insurance costs, and running costs to set a realistic budget for your car purchase.

- Research makes and models: Look into different makes and models that suit your needs and budget. Consider factors such as reliability, costs, features, safety ratings, and fuel efficiency.

- Find listings and test-drive: Search for used car listings online or through dealerships. Inspect the vehicles thoroughly and take them for a test drive to identify any issues.

- Get a vehicle history report: Obtain a vehicle history report from the seller or services like CARFAX to understand the car's accident history, ownership, and service records.

- Hire an expert for inspection: Consider hiring an expert to inspect the vehicle and provide a detailed assessment of its condition.

- Negotiate the price: Know the vehicle's fair market value and negotiate with the seller to reach a reasonable price.

- Finalize the purchase: Review all paperwork, including the title, service records, registration documents, and liens. Sign the necessary forms and make the payment.

- Register and insure the vehicle: Transfer the vehicle's registration to your name and obtain valid automobile insurance as required by law in New Brunswick.

- Detail the vehicle: Get the car professionally detailed or perform a thorough DIY cleaning to make it look and feel like new.

- Accessorize: Customize your car with accessories like floor mats, phone holders, and window tinting to enhance your driving experience.

Budgeting and financing

Know Your Budget:

Before stepping into a dealership or browsing online, determine how much you can afford to spend on a vehicle. Consider your monthly income, down payment, interest rate, loan term, insurance costs, and running costs like gas and maintenance. Avoid a car payment that exceeds 15-20% of your monthly income to stay within a realistic budget.

Get Pre-Approved for Financing:

Get pre-approved for auto financing from a bank, credit union, or other lender before you start shopping. This will give you a clear understanding of the maximum loan amount you're qualified for, and it will help you narrow your search to vehicles within your budget. Lenders will consider your credit score, income, debt levels, and down payment amount when determining your eligibility and interest rate.

Compare Interest Rates and Loan Terms:

Shop around for the best interest rates and loan terms. Compare rates from banks, credit unions, and online lenders, and consider getting pre-approved to see real rate offers. The higher your credit score, the lower the interest rate you can secure. Keep in mind that longer loan terms result in lower monthly payments but higher overall interest paid over time.

Understand the Total Cost of Borrowing:

When taking out a loan, remember that the cost of the vehicle isn't the only expense. You'll also be paying interest and possibly additional finance charges. Understand the total cost of the loan, including all fees and charges, before signing any agreement.

Choose the Right Loan Term:

The loan term, or the amount of time it will take to repay the loan, is an important consideration. While longer terms may seem attractive due to lower monthly payments, they often result in paying more interest in the long run. Shorter loan terms of 36-48 months can help you save money on interest and build equity in the car faster.

Explore Special Programs:

Take advantage of special car loan programs in New Brunswick, such as the Electric Vehicle Incentive Program, which offers rebates on new electric and plug-in hybrid vehicles. These incentives can significantly reduce the cost of purchasing an eco-friendly car.

Dealership vs. Bank Financing:

You have the option to get financing through a dealership or a bank. Dealership financing is often quicker and more accessible, especially if you have a lower credit score. However, bank loans may offer lower interest rates, but the approval process might be more rigorous. Compare rates and terms from both options to make an informed decision.

Negotiate the Price:

When negotiating the price of a used car, remember that the seller's asking price is usually higher than the vehicle's fair market value. Use resources like Kelley Blue Book and Canadian Black Book to determine the car's worth based on its make, model, year, mileage, and condition. Be prepared to negotiate by pointing out any flaws and making reasonable offers.

Finalize the Paperwork:

Before finalizing the purchase, review all the paperwork thoroughly. Check the title, service records, registration documents, and ensure there are no liens on the vehicle. Verify that all information is accurate and up-to-date to avoid any legal or financial complications down the road.

Transfer Ownership and Register the Vehicle:

Once you've agreed on a price, complete the ownership transfer and registration process. Sign the title transfer, change the registration into your name, and obtain insurance for the vehicle. Remember to pay applicable taxes and fees during this process, as failing to update paperwork can result in fines.

By following these budgeting and financing tips, you'll be well on your way to purchasing a car that fits within your financial means and helps you avoid unpleasant surprises.

Vehicle research

Before visiting dealerships and test-driving cars, it's important to do your research. Here are some key areas to look into:

• Budget: Determine how much you can afford to spend on the vehicle, including auto insurance, maintenance, and fuel costs. This will help you narrow down your options to budget-friendly makes and models.
• Features: Modern vehicles offer a wide range of features, and choosing the right ones can be challenging. Consider which features are must-haves or nice-to-haves for you, such as touchscreens, Bluetooth, backup cameras, cargo space, seating capacity, ground clearance, and heated seats.
• Safety: Safety is a crucial factor to consider, especially if you have children or plan to drive with passengers. Look for features such as curtain and console airbags, electronic stability control, safety alert systems, and anti-lock brake systems. Check the Insurance Institute for Highway Safety (IIHS) crash test ratings to evaluate the safety of different vehicles.
• Warranty: Understand the warranty offered by the manufacturer and what it covers. The best warranties will cover maintenance costs for at least three to four years.
• Research tools: Utilize various research tools to learn more about different vehicles. This includes visiting dealership websites, using automotive publications and review websites such as MotorTrend, Car and Driver, Road and Track, KBB.com, and Edmunds.com, and taking advantage of automotive apps that allow you to fine-tune your searches and set notifications for specific models.

Inspection and test drives

When buying a car in New Brunswick, it is important to be vigilant and conduct thorough inspections and test drives. Here are some detailed steps to guide you through the process:

Inspection:

• Obtain the Vehicle's History Report: Request a history report from the seller or obtain it from CARFAX, a commercial web-based service. This report will reveal any previous accidents or damage, helping you understand the vehicle's condition and identify potential issues.
• Hire an Expert: If you are unsure about the car's condition, consider hiring an expert to inspect the vehicle. They can provide a detailed assessment of each part's status and give an overall evaluation of the vehicle's condition, enabling you to make an informed purchase decision.
• Review Service Records: Ask the seller about the previous owner's maintenance routine. Request to see service records, receipts, and inspection reports. This will give you insight into how well the car has been maintained.
• Get a Second Opinion: Consider taking the vehicle to a trusted mechanic for a pre-purchase inspection. They can identify any underlying issues or damage that may not be apparent during a visual inspection.

Test Drives:

• Conduct a Thorough Test Drive: Take the vehicle for an extensive test drive, preferably for at least 20 minutes. During the drive, pay close attention to the brakes, acceleration, and gear shifting. Also, consider bringing a friend for a second opinion.
• Don't Be Pressured: If the seller refuses a test drive or pressures you into a quick sale, walk away. You have the right to thoroughly evaluate the vehicle before making a decision.
• Compare Different Vehicles: Test drive multiple vehicles within your preferred category to find the one that best suits your needs and budget. Don't be swayed by offers to test drive luxury vehicles that may be outside your budget or unnecessary for your requirements.

Registration and insurance

Registering your vehicle with Service New Brunswick is an important process for all residents of New Brunswick. By following the key steps outlined in this section, you can ensure your vehicle is properly registered according to provincial requirements.

Some of the key steps to registering your vehicle in New Brunswick include determining your residency status, gathering necessary documentation, and completing the registration process online or at a Service New Brunswick (SNB) location.

Determining Residency Status

Before registering a vehicle in New Brunswick, you must determine if you meet the residency criteria. To qualify as a New Brunswick resident, you must have a primary home in the province, file income taxes in New Brunswick, hold a valid New Brunswick driver's license, and spend most of your time in the province. Visitors can operate a vehicle registered in another jurisdiction for up to 6 months before needing to register it in New Brunswick. New residents have 90 days to register their out-of-province vehicle after taking up residency.

Gathering Required Documentation

To register your vehicle in New Brunswick, you'll need to gather the following documents:

• Proof of identity: A valid driver's license, provincial health card, or passport.
• Vehicle ownership: The vehicle's bill of sale or title of ownership.
• Safety inspection: A safety inspection certificate from an authorized inspection station.
• Proof of insurance: Valid insurance coverage from a provincially licensed insurer.

Registration Process

You can register your vehicle in New Brunswick either online or in person at an SNB location. Registering online saves you a trip to the SNB office and can be done at any time. However, registering in person allows you to complete everything in one trip, and SNB agents can answer any questions you may have.

Insurance

In New Brunswick, automobile insurance is mandatory for all vehicles registered and driven in the province. You must obtain valid insurance before registering and legally driving your vehicle on public roads. Work with a licensed insurance provider or broker to obtain a policy that meets the province's minimum liability coverage requirements.

The minimum coverage required in New Brunswick is $200,000 for Third Party Liability Insurance, which protects you as a vehicle owner and driver if you injure someone or damage someone else's property with your car. Purchasing additional insurance above this minimum can offer greater protection. The cost of increasing your Third Party Liability coverage is usually not significant. You can also purchase additional protection by adding endorsements or optional insurance to your policy.

Before buying automobile insurance, make sure that the seller is licensed. In New Brunswick, insurance products can only be sold by individuals licensed with the Financial and Consumer Services Commission (FCNB). You can verify the seller's license by checking the FCNB website.

Vehicle history

When buying a car in New Brunswick, it is important to check the vehicle's history to ensure you are aware of its past condition and any issues. This can help you avoid buying a car that has been in an accident, damaged, or stolen. Here are some detailed steps to guide you through the process of checking a vehicle's history:

• Obtain the Vehicle History Report: You can request a vehicle history report from the seller or a commercial web-based service like CARFAX or AutoCheck. This report will provide information about any accidents, damage, or other issues with the vehicle. It will also include details such as the number of previous owners, odometer readings, and any reported inspections.
• Check the Vehicle Identification Number (VIN) : The VIN is a unique identifier for each vehicle manufactured after 1980. You can find the VIN on the driver's side dashboard near the windshield, inside the driver's side door near the latch, or on the owner's insurance card. By searching for the VIN, you can verify the vehicle's identity and look for any discrepancies.
• Inspect the Vehicle: Before purchasing, thoroughly inspect the vehicle for any signs of damage, rust, leaks, or mechanical issues. Pay close attention to the interior and exterior, including buttons, switches, and features. Look for any red flags that could indicate larger problems, such as mismatched panels or uneven tire wear.
• Test Drive the Vehicle: Take the vehicle for a test drive to assess its performance and handling. During the test drive, pay attention to the brakes, acceleration, gear shifting, and overall driving experience. Strange noises or unusual handling issues may indicate underlying problems.
• Hire an Expert: If you are unsure about the vehicle's condition, consider hiring an independent mechanic or expert to inspect the vehicle. They can provide a detailed assessment of the vehicle's mechanical and cosmetic condition, including the engine, transmission, suspension, brakes, and exhaust system.
• Review Service Records: Ask the seller to provide service records, receipts, and maintenance history. This will help you understand how well the vehicle has been maintained and allow you to identify any potential issues or recent repairs.
• Check Registration and Ownership: Ensure that the vehicle's registration is up to date and matches the seller's name and address. Verify that there are no liens or flags on the title, which could indicate outstanding loans or debts associated with the vehicle.
• Be Aware of Private Sales: When purchasing from a private seller, keep in mind that you may have limited protection under the Consumer Product Warranty and Liability Act. It is crucial to conduct a thorough inspection, review all paperwork, and be confident about the vehicle's history before finalizing the purchase.

By following these steps, you can make an informed decision about purchasing a vehicle in New Brunswick and ensure that you are aware of its history and overall condition.

Frequently asked questions