The first step in the car buying process is figuring out your budget, which is where many car buyers make their first mistake. The problem is that many people simply assume how much money they can spend instead of calculating the actual amount, which leads to overspending. To avoid this, you need to consider each and every aspect of vehicle ownership and then fit it seamlessly into your personal budget. Here is how you can do that.
Assemble copies of all your latest credit card statements and bills, including your mortgage, utility, internet and cell phone numbers. After that, list all the monthly payments in a spreadsheet and divide them into two categories – fixed and variable. Fixed expenses should include payments that stay the same each month, like mortgage, utility, internet and television, while variable expenses should contain the ones that can change, like groceries and clothes.
Once your lists are complete, add up the amounts to obtain totals for each column and then add those to find out your total expenses.
Calculate your monthly household income and then subtract your total expenses from this amount. You should then decide how much of this disposable income you can part with each month. It is always a good idea to have some money left for emergencies, savings account and, of course, fun. A good rule of thumb is to spend no more than 10 per cent of your monthly household income on a single vehicle. Ultimately, however, the amount you spend on a vehicle will depend squarely on the size of your other expenses.
Once you know how much money you can afford to spend on a car per month, you should estimate how much you are actually going to spend. Car ownership costs tend to include expenses such as financing, insurance, maintenance, fuel and depreciation. According to CAA.ca, an average compact costs $9,500 to own, which amounts to roughly $790 per month. The biggest part of the cost is depreciation, followed by fuel, interest and then insurance. Use this amount to ballpark your monthly expenses, but keep in mind that your exact expenses will ultimately depend on your selected vehicle and how often you are planning to drive. You can find more information on calculating ownership costs here.
After estimating your monthly car ownership expenses, you should figure out the approximate price of your vehicle. You can then use it as one of the parameters to limit your vehicle search.
Since car loans last for three to six years, it is possible to afford a very wide range of vehicles. For instance, if your monthly car budget is $550, then you can obtain a loan ranging from $15,000 for 36 months to $32,000 for 84 months, which is essentially the difference between a Honda Civic and an Audi A3.
While a longer loan can net you a more expensive vehicle, it can also force you to spend more on interest. Financial institutions charge interest for each monthly payment, which is why longer loans add up to more interest.
Longer loan payments are also problematic for people who want to own a vehicle for three years or less since they would have to trade it in before paying off the loan. By the time you are ready to trade in your car, it may be worth less than what you owe for it. In this case, a trade-in would not provide you with enough money to pay off your loan.
On top of everything, expensive vehicles tend to have higher ownership costs since they are more costly to insure, maintain and repair. According to CAA.ca, a compact car, such as the Honda Civic, can cost $9,207 annually, while a full-size luxury vehicle, like the Chrysler 300, can cost $12,776. If you buy the former, you can easily save thousands of dollars.
You can always treat yourself to a more expensive vehicle, but you should keep the cost discrepancy in mind.
If you are unable to devote as much money to a new car as you would like, you may want to reduce certain expenses. The fastest way to achieve this is by entering your income and expenses into some form of budgeting software, such as Quicken. It should then show you where you tend to overspend and suggest new amounts. For instance, if you are spending 20 per cent of your income on entertainment, the software may recommend that you spend five per cent instead.
So, if your variable expenses are above the recommended levels, then you should probably lower them. Establish specific target amounts for those variable expenses. For instance, if your entertainment budget is $500, set $150 as your goal. You may also want to spend less on lunches and other little things. If you can make a few sacrifices here and there, then do not hesitate to do so.
The longer the car loan, the more aware you have to be of your potential financial situation in the future. Due to a wide variety of reasons, many of your expenses, such as rent, will undoubtedly increase over the years, which means that you may not be able to afford them anymore. The best way to avoid such an uncomfortable situation is by taking a look at all your bills and figure out how much they will be worth a few years down the road. Take into account other additional expenditures that may arise, such as mortgage, buying new furniture or having a baby. All of these can offset your budget in a negative way and cut into your disposable income.
Once you are done creating your budget, the next step is to select your vehicle type.
Updated on March 26, 2013
The use of the Site indicates your unconditional acceptance of these terms of service. We reserve the right, in our sole discretion to update or revise these terms of service. Your continued use of the site following the posting of any changes to the terms of service constitutes acceptance of those changes.
Membership Eligibility: The Site is available to members who are 18 years and older, residents of Canada, and who have not been suspended or removed by Unhaggle for any reason. By becoming a member you represent that you are of legal age and that you reside in Canada. If you do not qualify, you may not use the Site. As a member, you agree to provide true accurate, current and complete information about yourself as prompted by the Site's registration form. Members may not have more than one active account.
Additional Terms and Conditions: Additional terms and conditions may apply to specific portions of the Site or your membership which terms are made part of these Terms of Service by reference. You agree to abide by such other terms and conditions. If there is a conflict between these Terms of Service and the terms posted or emailed for, or applicable to, a specific portion of the Site or your membership, the latter terms shall control with respect to your use of that portion of the Site or your membership.
Proprietary Rights: You acknowledge and agree that the content materials and other components (including but not limited to logos, graphics, button icons and page headers) available on the Site are the property of Unhaggle and are protected by copyrights, trademarks, service marks or other proprietary rights and laws. You agree not to sell, license, rent, modify, distribute, copy, reproduce, transmit, publicly display, publicly perform, publish, adapt, edit or create derivative works from content or materials on the Site. Use of the content and materials for any purpose not expressly permitted in these Terms of Service is prohibited.
Submissions: Any comments, ideas, notes, postings, message suggestions or other communications or information posted on the Site submitted to Unhaggle, or otherwise communicated in connection with your use of the Site (collectively ,"Submissions") shall be and remain the exclusive property of Unhaggle with no further compensation to you. As such we will own exclusively all such rights, titles and interests and shall not be limited in any way in the use, commercial or otherwise, of any Submissions. UNDER NO CIRCUMSTANCES SHALL ANY DISCLOSURE OR ANY SUBMISSION TO UNHAGGLE CREATE ANY OBLIGATION OR LIABILITY ON THE PART OF UNHAGGLE. YOU ARE WAIVING ANY AND ALL RIGHTS THAT YOU MAY HAVE IN THE SUBMISSION AND YOU AGREE THAT ANY SUBMISSIONS BY YOU WILL NOT VIOLATE ANY RIGHT OF ANY THIRD PARTY, INCLUDING COPYRIGHT TRADEMARK PRIVACY OR OTHER PERSONAL OR PROPRETARY RIGHTS. YOU ALSO AGREE THAT NO SUBMISSION BY YOU WILL BE OR CONTAIN LIBELOUS OR OTHERWISE UNLAWFUL, ABUSIVE OR OBSCENE MATERIAL. YOU ARE AND SHALL REMAIN SOLEY RESPONSIBLE FOR THE CONTENT OF ANY SUBMISSIONS YOU MAKE. YOU REPRESENT AND WARRANT TO UNHAGGLE THAT UNHAGGLE IS FREE TO IMPLEMENT THE SUBMISSION IF IT SO DESIRES, AS PROVIDED OR AS MODIFIED BY UNHAGGLE, WITHOUT OBTAINING PERMISSION OR LICENSE FROM ANY THIRD PARTY. Unhaggle takes no responsibility and assumes no liability for any content submitted or posted by you or any third party.
LINKS TO THIRD-PARTY WEBSITES: No Implied Endorsements: This Site may contain links to other websites on the internet. You acknowledge that we have no control over such websites and that we are not responsible for the accuracy, content, legality or any other aspect of any linked website. In no event shall any reference to any third party, third party website or third party product or service be construed as an approval or endorsement by us of that third party, third party website or of any product or service provided by a third party.
Indemnification: By using this Site, you agree to indemnify, hold harmless and defend Unhaggle's respective officers, directors, employees, successors, agents, subsidiaries, partners, contractors, vendors, manufacturers, distributors, representatives and affiliates from any claims, damages losses, liabilities, and all costs and expenses of defense, including but not limited to, attorneys' fees, resulting directly or indirectly from a claim (including without limitation, claims made by third parties for infringement of intellectual property rights) by a third party that arises in connection with (1) your use or misuse of the Site; (2) your breach of the Terms of Service; or (3) your violation of any law or the rights of a third party. You agree to cooperate as fully as reasonably required in the defense of any claim. Unhaggle reserves the right to assume the exclusive defense and control of any matter otherwise subject to indemnification by you.
Disclaimer of Warranty: THE SITE, ITS CONTENT AND ALL TEXT, IMAGES MERCHANDISE AND OTHER INFORMATION ON, ACCESSIBLE FROM OR AVAILABLE THROUGH THIS SITE ARE PROVIDED ON AN "AS AVAILABLE" AND "AS IS" BASIS WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT SPECIFICALLY, BUT WITHOUT LIMITATION, UNHAGGLE DOES NOT WARRANT THAT (1)THE INFORMATION AVAILABLE ON THIS SITE IS FREE OF ERRORS; (2)THE FUNCTIONS CONTAINED ON THIS SITE WILL BE UNINTERRUPTED OR FREE OF ERRORS; (3) DEFECTS WILL BE CORRECTED OR (4) THIS SITE OR THE SERVER(S) THAT MAKES IT AVAILABLE ARE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS.
Limitation of Liability: IN NO EVENT SHALL UNHAGGLE OR THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS, SUBSIDIARIES, DIVISIONS, DISTRIBUTORS, SUPPLIERS, AFFILIATES OR THIRD PARTIES PROVIDING INFORMATION ON THIS SITE BE LIABLE TO ANY USER OF THE SITE OR ANY OTHER PERSON OR ENTITY FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING, BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, LOSS OF DATA OR LOSS OF USE) ARISING OUT OF THE USE OR INABILITY TO USE THE SITE OR OTHERWISE, EVEN IF UNHAGGLE HAS BEEN ADVISED OF OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES OR LOSS. IN NO EVENT SHALL THE TOTAL LIABILITY OF UNHAGGLE OR THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS, SUBSIDIARIES, DIVISIONS, DISTRIBUTORS, SUPPLIERS, AFFILIATES OR THIRD PARTIES PROVIDING INFORMATION ON THIS SITE TO YOU FOR ALL DAMAGES, LOSSES, AND CAUSES OF ACTION RESULTING FROM YOUR USE OF THIS SITE WHETHER IN CONTRACT, TORT (INCLUDING BUT NOT LIMITED TO NEGLIGENCE) OR OTHERWISE EXCEED THE AMOUNT YOU PAID TO UNHAGGLE IN CONNECTION WITH THE APPLICABLE EVENT OR PROMOTION GIVING RISE TO SUCH LIABILITY. WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL UNHAGGLE OR THEIR RESPECTIVE OFFICERS DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS, SUBSIDIARIES, DIVISIONS, DISTRIBUTORS, SUPPLIERS, AFFILIATES OR THIRD PARTIES PROVIDING INFORMATION ON THIS SITE HAVE ANY LIABILITY FOR ANY DAMAGES OR LOSSES ARISING OUT OF OR OTHERWISE INCURRED IN CONNECTION WITH THE LOSS OF ANY DATA OR INFORMATION CONTAINED IN YOUR ACCOUNT OR OTHERWISE STORED BY OR ON BEHALF OF UNHAGGLE.
You hereby acknowledge that the preceding paragraph shall apply to all content, merchandise and services available through the Site. Because some provinces do not allow limitations on implied warranties or the exclusion or limitation of certain damages in such provinces some or all of the above disclaimers or exclusions may not apply and liability will be limited to the fullest extent permitted by applicable law.
International Use: We make no representation that information on this Site is appropriate or available for use outside Canada. Those who choose to access this Site from outside Canada do so on their own initiative and are responsible for compliance with local laws, if and to the extent local laws are applicable.
Unavailability of Site; Termination; Fraud: We may alter, suspend, or discontinue this Site in whole or in part, at any time and for any reason, without notice or cost. We may in our sole discretion, terminate or suspend your use or access to all or part of the Site, or your account or membership for any reason, including without limitation, breach of these Terms of Service. If at any time, we notify you that your access to and/or use of the Site or your account is terminated, you must cease and desist from all such access and/or use immediately. We reserve the right to cancel, delay, refuse to ship, or recall from the shipper any order if fraud is suspected. In the event these Terms of Service or your membership or account are terminated the restrictions regarding intellectual property matters, the representations and warranties, indemnities, and limitations of liabilities set forth herein (as well as any other of your obligations which by their nature should survive termination) will survive termination.
Copyright Infringement: Notice and Take Down Procedures: If you believe that any materials on this Site infringe your copyright, you may request that they be removed. This request must bear a signature of the copyright holder or an authorized representative and must : (a) identify the allegedly infringing materials; (b) indicate where on the Site the infringing materials are located; (c) provide your name and contact information; (d) state that you have a good faith belief that the materials are infringing; (e) state that the information in your claim is accurate; and (f) indicate that "under penalty of perjury" you are the lawful copyright owner or are authorized to act on the owner's behalf. Our contact for copyright issues relating to this Site is: Copyright Agent: Unhaggle Inc., [email protected].
Choice of Law and Forum: These Terms of Service and any dispute of any sort that might arise between you and Unhaggle or its parent, subsidiaries or affiliates shall be governed by and construed in accordance with the laws of the province of Ontario, without regard to its conflict of law principles, as it is applied to agreements entered into and performed therein, and excluding the United nations Convention on Contracts for the Sale of Goods, as amended from time to time. Any action brought to enforce this Agreement or matters related to the Site will be brought in either the provincial or federal courts in Ontario, provided, however, that notwithstanding anything contained in these Terms of Service to the contrary we shall have the right to institute judicial proceedings against you or anyone acting by, through or under you, in order to enforce our rights hereunder through reformation of contract specific performance, injunction or similar equitable relief. You consent to the jurisdiction of such courts and irrevocably waive any objection including without limitation any objection to the laying of venue or based on the grounds of forum non conveniens which you may now or hereafter have to the bringing of any such action or proceeding in such jurisdiction. Any claim or cause of action you have with respect to use of the Site must be commenced within one (1) year after the claim arises.
Updated on September 16, 2019
Information Collected: In order to access this Site, you must first complete the registration process. During the registration process, we collect personal information such as your name and email address. Once you complete and submit your registration, you have opted-in to receive email communication from Unhaggle.
We also collect personal information when you choose to use certain other features of the Site, such as making purchases, we require you to provide additional information such as your phone number, billing addresses and credit card information, and we may request additional personal information such as your shopping preferences and demographics.
We use personally identifiable information in order to give you a more enjoyable convenient shopping experience and to help us identify and/or provide information, products or services that may be of interest to you. We use your personally identifiable information to support and enhance your use of the Site and its features, including without limitation: fulfilling your order; providing customer service; tracking email invitations you send; and otherwise supporting your use of the Site. We may also track your past purchases to provide you with a personalized profile of your shopping history. In addition, we may notify you about new services or special promotional programs, or send you offers or information.
In connection with the performance of services to maintain and operate the Site and certain features on the Site, certain trusted third parties may be permitted to access your information. For example, we may use third parties to host the Site; operate various features available on the Site; send emails; analyze data; provide search results and links and assist in fulfilling your orders.
We reserve the right to disclose information in order to comply with a subpoena, court order, administrative or governmental order, or any other requirement of law, or when we, in our sole discretion, believe it is necessary in order to protect our rights or the rights of others, to prevent harm to persons or property, to fight fraud and credit risk reduction.
We use non-personally identifiable information in the aggregate, so that we can improve the Site and for business and administrative purposes. We may also use or share with third parties for any purpose aggregated data that contains no personally identifiable information.
How We Protect Your Information: We are committed to protecting the information we receive from you. We follow reasonable technical and management practices to help protect the confidentiality, security and integrity of data stored on our system. While no computer system is completely secure, we believe the measures we have implemented reduce the likelihood of security problems to a level appropriate to the type of data involved.
The Site encrypts your credit card number and other personal information using secure socket layer (SSL) technology to provide for the secure transmission of the information from your PC to our servers. In addition, only those employees and third parties who need access to you information in order to perform their duties are allowed such access.
We will store your personal information for as long as necessary to fulfill the purpose for which it was collected, except where otherwise required or permitted by law. Once no longer required, your personal information will be securely destroyed or anonymized (so that the information no longer identifies you).
Some of our authorized third-party service providers operate in the United States. In the course of providing their services to us, these service providers may access, process, store or use your personal information in the United States. In that case, your personal information is subject to the law of the United States, including any law permitting or requiring disclosure of the information to the government, government agencies, courts and law enforcement in the United States.
During your visits to other websites, we (or third parties) may use certain anonymous, non-personal data collected on our site to show you advertisements likely to be of greater interest to you, which is called Online Behavioural Advertising (OBA).
Our partners use OBA to show you ads based on your behaviour. If you want to opt out of receiving online behavioural advertising via the Google Network, please visit this page and click on the Opt-Out Settings that reads "Opt out of interest-based Google Ads Across the Web". This does not mean that you will no longer receive advertising when visiting other sites. It just means that the advertising you see will not be customized for you based on your behaviour on this and all other sites on the Google Network.
We may allow third-parties, including our authorized service providers and advertising companies, to employ third-party cookies to collect anonymous information about you. This information may allow them to deliver targeted advertisements and gauge their effectiveness and are covered by their Privacy Policies.
Most browsers have cookies enabled by default, but you can usually modify your browser settings to disable cookies. The option to change cookies settings is typically found in the 'options' or 'preferences' menu of your browser. In order to understand these settings, please use the 'Help' option in your browser for more details.
Accessing and Updating Your Personal Information and Preferences: If you are a registered user, you may access and update your registration information and your preferences to receive email or other communications from us by sending an email to [email protected]. Any user who receives an email invitation to join the Site may choose not to receive such invitations in the future by following the instructions in the email invitations and, in addition, if you are a member, you may also choose not to receive such invitations by changing your preferences as indicated above. We will take commercially reasonable steps to implement your opt-out requests promptly, but you may still receive communications from us for up to ten business days as we process your request.
In addition, you may update, change or correct your personal information or preferences by sending an email to [email protected].
While we make efforts to accommodate requests to restrict our use of your information, we reserve the right to delete all or any portion of customer information if we are not able to reasonably accommodate a requested restriction.
Children's Privacy and Parental Controls: We do not solicit any personal information from children. If you are not 18 or older, you are not authorized to use the Site. Parents should be aware that there are parental control tools available online that you can use to prevent your children from submitting information online without parental permission or from accessing material that is harmful to minors.
20 Queen Street West, Suite 2800
Toronto, ON M5H 3R3