Essential Tips For Buying From a Dealership

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Essential Tips For Buying From a Dealership

Posted on September 15, 2025

If you're in the market for a new car in Etobicoke, our team is here to teach you the best way to properly budget, research, negotiate, and finalize your purchase smoothly. Read on for our comprehensive guide on how to buy a care from a dealership and ensure that your next trip to Woodbine GM is as stress-free as possible.

The Short Version

• Set a budget using the 20/4/10 rule to manage expenses and avoid financial strain.
• Research vehicles thoroughly and inspect them in person before buying to assess condition and features.
• Schedule a test drive on varied terrain to get a better understanding of a vehicle's performance under different circumstances.
• Request a vehicle history report to investigate any previous accidents, issues, and past owners.
• Negotiate effectively by focusing on the overall price, and don’t shy away from walking away if the deal isn’t right.
• Make sure your vehicle is properly insured and registered before taking it on the road.

Determine Your Budget and Financing Options

The first step to buying a car begins with setting a realistic budget. We like to apply the 20/4/10 rule here - make a 20% down payment, opt for a 4-year loan, and keep your total monthly payment vehicle expenses under 10% of your gross income. This helps to keep your from overextending yourself financially and you can manage your car payments more comfortably.

It's important to consider all the costs that are associated with vehicles purchases, including upfront costs, repair costs, dealer fees, ongoing expenses, fuel, insurance, maintenance, etc. Fronting a larger down payment can lead to significantly lower monthly payments and even improve your loan terms. We recommend getting pre-approved for a loan, as this will help you understand your financing options better and give you a clear budget to work around.

Opting for a shorter loan term often comes with lower interest rates, allowing you to build equity quicker. Interest rates, loan amounts, terms, and credit score requirements are all factors to consider, since they'll influence which auto loan is the best for you. Your credit score, in particular, can help determine if you need a co-signer or a larger down payment to qualify for a loan.

Check Your Credit Score

Lenders use your credit score to predict your risk and likelihood of payment - a higher credit score can lead to better car loan terms and lower interest rates. In Canada, credit scores range from 300 to 900, with scores above 660 generally meaning you're headed in the right direction.

You can access your credit report free of charge from your bank at least once every 12 months, or use our free pre-approval form. If your credit score is on the low end, don't worry; we provide car financing options no matter what your score is, because we believe that every should be able to own a vehicle. Alternatively, you can also put down a cash payment to help with loan approval and lower your monthly payments.

Research Vehicles and Features

Once you've got your budget set, it's time to start researching vehicles options. Consider what you're looking for out of your potential ride - what are your driving habits? Are you looking for a family vehicle? What features do you want in your car? Based on that, you can browse through our online inventory of new vehicles or use an online resource like the Edmunds app to gather more detailed information on different options and their reliability ratings.

It's important to see your potential choices in person, so don’t just rely on car online research. This allows you to assess their condition and features firsthand. Prepare for your car dealership visit by listing your vehicle preferences and researching average car prices in your area. Tools like the CAA Driving Costs Calculator can also help you understand the full cost of vehicle ownership beyond just the purchase price.

Remember that the type of car, whether pre-owned or brand-new, will also impact your decision. Each type has its own set of advantages and considerations, so weigh your options carefully.

Choose the Right Dealership (Hint: It's Ours!)

The next step is to find a dealership that matches up with your chosen preferences. Outside of providing an extensive selection that aligns with your car interests, it's also important to seek out an established dealership known for its high quality customer service. That is, of course, where we come in!

If you're looking for a wholly transparent process and a smooth, enjoyable buying experience from your car dealer, look no further than your friends at Woodbine GM. Unlike some other car dealers, we won't surprise you with unexpected fees or high additional charges on advertising or market adjustments. Don't take our word for it though, just look at what our customers have had to say.

Schedule Test Drives

Narrowed down your choices? It's time for the fun part: scheduling test drives. This isn't just a fun way to get behind the wheel of a brand-new ride, it also lets you experience the vehicle's performance and comfort firsthand. Before you get into a vehicle, create a list of essential features that you're looking for, this will help you further zero in on your ideal picks.

To get a full understanding of your potential choice's performance, we offer a varied drive route that covers a range of driving conditions, including different terrains and speeds. Consider bringing a friend who can also help identify concerns from a passenger perspective, ensuring that your new vehicle is perfect for both you and your family and friends.

Inspect Vehicle History and Condition

If you're considering a used vehicle, remember to thoroughly inspect its history and condition before finalizing your decision. All Canadian dealerships are required to provide CARFAX reports that cover any accidents, maintenance records, and previous ownership information, which we will happily provide for any vehicle you might be interested in.

Discuss the Purchase Price

With all the information gathered, you can now begin discussions on purchasing price. Whether you're buying a used car or a new one, being well-informed about vehicle pricing and market conditions will be important in helping you find the best car for specific needs and budget. Keep an eye out for any dealership specials and promotions, as this can also increase your chances of securing a good deal.

Don't focus solely on monthly payments during your talks though; our team of sales advisors will help you understand the overall purchase price and know which aspects of the deal are negotiable, like the vehicle price and trade-in value. Don't feel pressured to accept any terms you aren't satisfied with, we're here to work with you to figure out a payment plan that works for you.

Review Financing and Warranty Options

Once you agree on the price, review your financing and warranty options. One of our dealership’s finance managers can provide information about various products and services, including warranties and maintenance plans.

Finalize the Paperwork

After sorting out your financing and warranty options, it’s time to finalize the paperwork. Take your time to read through all the contracts carefully to make sure every agreed-upon detail is included, such as dealer fees and any extras like winter tire packages (a must-have for those chilly Toronto winters). Don’t forget to bring along your driver’s license, current insurance card, and any documents related to a trade-in.

When your new car is ready for delivery, one of our team members will contact you to confirm your identity and help you through the final paperwork. Once everything is signed, you’ll be all set to complete your payment and get ready to hit the road in your new ride.

Get Behind the Wheel of Your New Car

The time has come - it's time to take the keys to your brand new car! Before you head off in your new ride, do a final check for any dents, scratches, or cleanliness issues, and make sure the gas tank is full. One of our sales team will also demonstrate key features, such as how to pair your smartphone and use any safety devices. Be sure to hang on to a copy of the signed Bill of Sale for your records and make sure you've got proper insurance coverage beforehand.

Insure Your New Purchase

As we just noted, it's important to ensure that your vehicle is properly insured before you hit the road. You should also consider investing in guaranteed auto protection, or gap insurance, for new cars, as it covers the difference between the loan amount and the car's actual cash value if it is totaled or stolen. Due to the rapid depreciation of new cars, this type of insurance can provide some reassurance, as it covers remaining loan balances.

Dealerships typically offer gap insurance as a one-time premium that can be included in the loan amount. We recommend consulting with an Ontario-based insurance advisor for coverage options.

Register Your Vehicle

The last step in the car buying process is registering your vehicle. To do this, you'll need proof of insurance, ID, and a Bill of Sale. Many dealerships, including ours, will work with you through this process, including providing a number plate and grouping in the registration fee with the total cost of the vehicle.

For any readers new to the province, it's important to note that new Ontario residents must change their vehicle registration within 30 days of moving, and any outstanding fines might impede this process.

Head to Woodbine GM Now to Browse Our Inventory!

In summary, buying a new car from our dealership in Toronto is a straightforward process when you follow the right steps. From setting your budget and researching different vehicles to checking your credit score and negotiating the price, each part is important to help you get the best deal possible.

Use this guide to approach your car buying journey with confidence. Take your time exploring our wide range of new and pre-owned vehicles. Remember, being well-informed is the key to making a smart purchase. Happy car shopping, Toronto!

Frequently Asked Questions

What are the advantages of buying from a dealership instead of a private seller?

Unlike buying from a private seller, buying from professional car dealers like us allows you to look through multiple vehicle options at once, as well as taking them on test drives dedicated to showcasing their performance under varying conditions.

In addition, the process is fully transparent both during and after the sale, meaning you won't have to worry about any unforeseen costs or scams that might come with private sales.

When is the best time of year to buy a car?

December is usually the best time to buy a car from a dealership, as you'll be able to take advantage of end-of-year sales and more competitive pricing.

What is the best mileage for a used car?

There's no definitive rule for how many miles on a used car is too much, but following the guideline of 19-20,000 km per year is a good starting point. Determine the car's age, multiply the number of years by 19-20,000, and if the odometer reading is significantly higher, it might be cause for concern.

What is the best length of time to finance a car?

Generally, auto loans should not exceed 60 months for new cars and 36 months for used cars. However, given today's high car prices, this can be challenging for some buyers. Ultimately, selecting the optimal auto loan term involves balancing cost, affordability, and your individual requirements.