Car buyers often ask themselves the age-old question, "New or Used?"
And it turns out that three in every four Canadians actually prefer a used car to a new car. In this article, we will discuss why buying a used or pre-owned car can be more advantageous that buying one that came right off the assembly line.
No One Will Notice
Brand new cars are always more expensive than used cars. A new car is often 20 – 30 percent more expensive than a similar car that has 30,000 miles on it and is barely a year old. This is attributed to the fact that a brand new car loses at least 10 percent of its original sales value as soon as it gets out of the showroom, and loses even more after the hype for the new model is over.
The costs associated with purchasing a brand new car does not end there. More often than not, auto insurance companies charge more for a brand new car. The amount is no joke – it can reach more than a couple of thousand dollars for some models. On the other hand, insurance on used cars cost much less – many times the savings can amount to a thousand a year.
But then, well-maintained, used cars can be just as charming as any brand new car out there. At just a couple of years old, a used car can still be in tip-top shape. Actually, with the right kind of knowledge about how to inspect cars, you can get the car of your dreams and save a pretty penny in the process. Access is only a mouse click away to literally thousands of sites that share good information on used cars, and many sites are completely free.
Less for More
As an example, let us have a look at the 2009 Toyota Corolla CE.
Brand new Corollas can easily set a North American family back 15k, this does not include costs associated with comprehensive or third-party liability insurance. It also excludes tax costs and other miscellaneous fees. Furthermore, interest rates for auto financing can also raise the final price.
On the other hand, an identical Corolla that happens to be a year old and has about 30,000 miles on it costs 11 K. This is a second-hand car that does not show any signs of having suffered major damage in its history. The story does not end here.
Add up the cost savings for the interest on a new car versus an old we are now approaching thousands of dollars. The Used Corolla could end up saving you close to 150 dollars a month over the period of financing terms. In short, you can get your dream car without having to throw away your life's savings.
More for Less
Now, suppose you have a fixed budget for a car and you are shopping around for brand new cars that fall within the desired price range. Unfortunately, many people find this to be a frustrating ordeal because there are not many options to begin with. However, the story is very different when it comes to used cars.
Using the previous example and assuming that your budget is, say, roughly 15 thousand dollars, the best option might be the 2009 Toyota Corolla. However, opening up your mind to the wide array of used cars for sale will let you discover that a used 2007 Toyota Camry – something that costs much more than a Corolla – can be purchased for approximately the same price. The options that become available to your actually increase when you consider used. These are the same reasons why more Ontarians are getting smarter with their cars.