What millennials should know when buying a new or used car

TORONTO -

For most people, buying a vehicle is the second largest purchase they'll ever make and the price of many cars, trucks and SUVs have gone up during the pandemic.

The Ontario Motor Vehicle industry Council (OMVIC) is the agency that oversees vehicle sales in Ontario and says a recent study found that many millennials shopping for their first car are unaware of all of their car buying rights.

“The campaign is designed to help millennials and others to understand their rights when buying a car and to help them find a place to go to find the best buying tips that are possible out there," said John Carmichael, the CEO of OMVIC.

Right now is a difficult time to buy a car as there are shortages due to a lack of micro-chips and other parts and inflation is making new and used vehicles cost more.

According to Consumer Reports, some vehicles are so hard to come by consumers are paying above their sticker price with the Jeep Compass selling for 15 per cent over MSRP, the Chevrolet Silverado for 17 per cent more and the 2021 Kia Telluride for 18 per cent over.

It's also caused the price of used vehicles to go up.

“The shortage of new cars available for sale right now, has actually made demand for used cars jump too. The average price of a used car jumped 12.5 per cent over the past year,” according to Jon Linkov with Consumer Reports.

It makes car buyers like Dan Barkyoumb a bit nervous.

“I just don’t think I’m the best car buyer. I’m not good at negotiating or anything like that,” said Barkyoumb.

Your best bet is to choose a model that isn't in such high demand, do your research and be prepared to negotiate.

OMVIC has a new campaign and tutorials on it’s website at www.omvic.ca to help educate drivers to know their rights when buying a vehicle.

There are videos on all-in pricing, dealing with curbsiders (illegal sellers) and buying a car privately.

A common mistake some buyers make is to sign a contract to purchase a car and then change their mind as there is no cooling off period in Ontario.

“Before you sign anything make sure you know what you're buying and that you're happy with the transaction and you've read the contract. Once you sign the contract that deal is solid and you own that vehicle," said Carmichael.

When buying a vehicle the salesperson may try to sell you add-ons such as rust proofing, extended warranties and gap insurance as well as try to negotiate monthly payments when you should concentrate on the total price of the vehicle.

“The salesperson will try to keep the focus on your monthly payment. Insist on negotiating one thing at a time and only after you've locked in the price of your new car, should you begin to discuss a trade-in or financing,” said Linkov.

You'll have added protection buying from an OMVIC registered dealer and you should ask to see the used vehicle information package and Carfax history report.

If you're financing the vehicle, make sure you take your time to understand all the terms and conditions including the interest rate.

“If you make a mistake on a transaction that can cost you a few thousand dollars, that's an expensive education to learn,” said Carmichael.

As for Barkyoumb, he found a car but said next time he'll take more time when doing his research.

“It all happened in the span of about 24 hours, but I think I would have shopped around a little bit more if I had more time," said Barkyoumb.

When buying a used car you should check to see if there are any open recalls and research the year, make and model of the vehicle as you'll find hundreds of reviews online that can help you make your decision.