Big News!

I bought my first car on Thursday!

I’d been looking for the past 2 weeks for a used Toyota RAV4, but ended up buying the first Honda CRV I tried out. Previously, I was looking at older cars, from around 2006. As I considered the unusual driving conditions*, I went with J.’s suggestion to get a newer car for better reliability and safety.

On Thursday morning, we visited a local Honda dealership, and my mom helped me negotiate a 2009 CRV from $17,999 down to $16,500**. This is definitely much more than my original budget of $12,000, thinking I was going to get a beater. At the advice of the Honda sales rep, I am putting down $5000 – withdrawing from my TFSAs – and finance the rest at 4.99%. As it’s an open loan, I could put payments on the principal at any time (without penalty). The additional bonus of financing is that it will help boost my credit rating**** in the long run.

Rather than my mom’s current insurance company, today I purchased car insurance from TD Meloche Monnex as a University of Toronto alumni. I was hoping my rate would be much lower, but in the end, including all the bells and whistles and accident forgiveness, I went with a monthly premium of $198.75/month. The costs add up so quickly! And as I will be given a furnished home with a bed, I decided to transfer the $1200 from my mattress savings account and use it towards my car funds instead***.

That’s it for now. My mom is going to pay for my snow tires and my grandmother will help me grab a first-aid kit, a snowbrush and some utility mats. Pick-up is on Monday! It’s exciting to finally have my own car!

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*It’s approximately 1250 km from Toronto to Waskaganish. There is no cellphone service on the last 400 km of the James Bay Highway. If I’m stuck, I sit there until someone passes me by, or I can walk to an emergency phone, which are spaced approximately 70 km apart from each other. Snowdrifts get quite high and I might pass one vehicle every hour. 

**Kelly Blue Book was quoting the same price.

***I will eventually purchase my own mattress, but at this time, it’s not a financial priority.

****When I checked through TransUnion, back in April, my credit rating was still sitting at 723.