Issues to consider

• Make and model

• Options (want vs. need)

• New or used

• Private sale or dealership

Make and Model of Car

• What type of car do you want?

– Make (Honda, Toyota, Ford, etc)

– 2 or 4 door model

– Model (sports car, van, suv, truck, etc)

– Size (small, medium, large)

Options

• These will increase the price of your car. They are not necessary but are nice to have.– Air conditioning– Automatic transmission– Power windows– Engine size– Sun roof– Other???

New or Used

• Used Advantages– Cheaper– Depreciate less (don’t lose value as fast)

Used Disadvantages– May not have new technology– Not certain properly maintained– Finance rates are not as good

New or Used

• New Advantages– Longer warranty

New Disadvantages– Expensive– Lots of hidden costs (like delivery, GST,

license fee for putting plates on your car)– Depreciates as soon as you drive it off the lot

Tax on Cars

• Do you have to pay tax on a new car?– Yes! 15% (HST) of the purchase price

Do you have to pay tax on a used car?

Mostly yes! 15% of the fair value price

**Unless you get it as a gift from a family member

http://novascotia.ca/snsmr/pdf/ans-rmv-tax-privately-purchased-vehicles.pdf

• Do you have to pay tax on a new car?– Yes! 15% (HST) of the purchase price

Do you have to pay tax on a used car?

Mostly yes! 15% of the fair value price

**Unless you get it as a gift from a family member

http://novascotia.ca/snsmr/pdf/ans-rmv-tax-privately-purchased-vehicles.pdf

Where to buy a Car

• Car Dealership

• Private Sale

Car Dealership

• Usually charge more

• Well maintained

• Some give limited warranty

• Can get financing

• Will get you the license plate and transfer ownership

Private Sale

• Eliminates the “middle man” so cheaper

• Usually no warranty

• Buyer must secure:– financing– Paperwork to transfer ownership

Will you pay the sticker price of the car?