Vehicle finance part 4

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Title: 4. Vehicle Finance Part #4 Notes Posted - 40S Essentials
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  • Part 4 - Compare & Contrast Questions
  • Vehicle Finance - Essential Math
  • Vehicle Finance - Part #4

Vehicle Finance - Part #4

Vehicle Finance - Part #4
Buying a Used Vehicle
Buying a Used Vehicle
a new vehicle depreciates by about 30% of its original value
during the first year of ownership, therefore when you buy a 1 year
old used vehicle you will pay approximately 70% of the new cost
when buying used you can save a fair bit of money, but you must
also be careful when you are purchasing used, you may think of
the term "buyer beware"
just as there are many factors to consider when you purchase a
new vehicle, there are many to consider when you purchase a used
vehicle
Factors to Consider
things that you need to do before buying a used vehicle
Lien Search - is a search for claims on the car by a
creditor (maybe the car owner used the car as security
for a debt)
Certificate of Inspection - ensures that the vehicle
conforms to regulations governing safety, emissions, or
both. In Manitoba this is known as a safety inspection
and it is required to transfer the title of a vehicle.
Factors to Consider
Certificate of Inspection - The safety inspection on a used
vehicle cannot be more than one year old. This certificate will
cover: brakes, windows, tires, lights, exhaust system, seatbelts,
turn signals, horns, other components and systems related to
safety
Diagnostic Test - either at a dealership or at the garage of a
certified technician, this test will be completed to determine
the quality of the vehicle and whether or not it will require
repair work. This will include: engine, transmission, suspension,
body (for evidence of accidents) and the exhaust system
Factors to Consider
before purchasing a used vehicle you should also be
aware of its book value, that is the average monetary
value for a specific year, make, and model of a vehicle is
worth
this would be roughly what you can expect to pay for the
vehicle depending on its condition
Buying Used From a
Dealership
if you purchase a used vehicle through a dealership,
there are no extra costs involved, they have the
responsibility to do a lien search, and safety inspection.
if you buy a used vehicle from a dealership, you have to
pay both GST and PST on the price of the used vehicle

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