The debate over whether to buy a new or used car has raged for years. It is one of those discussions on which everyone has an opinion, and, regardless of their point of view, they are partially right. However, over the past two years, securing a vehicle has been challenging for drivers, who face intense competition and high prices. The ongoing vehicle supply shortage in Ontario continues to create significant roadblocks for buyers, including fewer options, long wait times, and higher prices. Depending on where you are in life, your lifestyle, your finances, and your family situation, you may be unsure which option to pursue. Today, we’re going to run down some of the benefits of each to help you decide whether you should buy a new or used car.
Pros of Buying a New Car
1. Brand New
This should come as no surprise: a new vehicle is new. It will include the latest features and the most up-to-date design. You can get it in the colour you want, the add-ons you desire, and much more. Because it’s new, you can customize it to your lifestyle.
2. Warranty and Service
New cars typically require minimal service initially. Warranties can be purchased or extended for an additional cost. Once you buy it, you have little to no concerns if any problems arise. Regular maintenance is also often provided by the dealer for new vehicles.
3. Enhanced Safety
A common reason to buy a new car is that newer models offer improved safety features. The advanced computer technology in newer models is enhancing safety and driving ease. Therefore, if you opt for the latest model, you are likely to benefit from features such as rear-view cameras, blind-spot and lane-monitoring systems, and stability control, which are not available in older models.
4. Better Fuel Efficiency
In terms of how much you are likely to spend on gas each month, this amount can add up over time. If your vehicle improves fuel efficiency, you can save money. Newer vehicles across a range of models and sizes are delivering lower fuel economy than previously available.
Pros of Buying a Used Car
1. The cost is cheaper (in most cases)
The price of a used car is significantly less upfront when you compare that to the price of a new car. As a driver, if you are trying to save money and stick to a specific budget, this can be an effective way to secure a much-needed vehicle without overspending. Depending on mileage, year, recent maintenance, and other factors, the price can drop substantially. As a result, it’s technically possible for everyone to buy a used car.
When buying a used car, you should check for any open recalls. Be sure to research the vehicle’s year, make, and model, as you’ll find hundreds of online reviews to help you make your decision.
2. Depreciation
They say that the minute you drive a new car off the lot, it depreciates by 20%. Additionally, after year one, this decrease in value can increase to approximately 30%. A used car has already taken that hit, and what you pay is more in line with what the car is actually worth. If you decide to buy a car that’s two or three years old, you’re going to save even more due to the further depreciation of that vehicle. Not only is this great for you as a buyer, but it also works out better for you if you decide to sell the vehicle, as it will retain more of its value.
3. Lower Insurance and Registration Fees
Generally, used cars are less expensive to insure than brand-new ones. Registration fees are often based on the car’s purchase price at the time of the initial sale. This typically means these costs will also be lower. If you choose a model that is the safest on the road, with a long track record of evidence, this is especially true. By investing in a car that has a long track record of being safe, you get rewarded by your insurer for making a wise decision. Consider getting a quote from isure before buying a used car to see how much you can potentially save!
The best of both worlds: If you’re in the market for a new (or newer) car, don’t forget about a certified pre-owned (CPO) car. A CPO vehicle is not as expensive as a brand-new car, and tends to be more reliable than most used cars found in the private market.
Should You Buy a New or a Used Car?
Ultimately, buying a new or used car should depend primarily on your current and future financial situation. The way we buy and sell cars today is changing. Dealerships are having difficulty sourcing inventory, and when they do, there is intense competition in the marketplace. As a result, the price of the few available new and used vehicles is almost, if not exactly, on par. So, how do you decide? If you have a good income and credit score, a new car might be a great investment. Then again, a used car might be more affordable overall.
Either way, it’s best to research and avoid making any quick decisions. Be sure to do your homework and speak with one of our isure car insurance representatives about insurance rates for both new and used vehicles to determine which option is best for you.
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