Buying a vehicle is a major financial decision, and one of the first questions drivers face is whether to choose a new or used car. While used vehicles often appear more affordable at first glance, the decision involves much more than just the sticker price. Factors like reliability, depreciation, recall history, maintenance costs, and personal preferences all influence the true cost of ownership. Although there’s undeniable appeal in driving a brand-new car off the lot, purchasing used can offer significant savings and value—depending on the make and model you choose. In this guide, we’ll break down the key factors that affect used vehicle pricing so you can make a smarter, more informed decision.
Ford F-150 Vs Toyota RAV4: The Costs Of New and Used Vehicles
The Ford F-150 and the Toyota RAV4 are two of the most popular vehicles in Canada. With this in mind, whether it’s a new or used vehicle, the F-150 and the RAV4 could not be more different. The F-150 is built for hauling heavy loads, while the RAV4 is more of an everyday family vehicle. Year after year, Canadians everywhere purchase these vehicles, both new and used.
Ford-F150
When it comes to new vs. used vehicles, the cost difference for the F-150 is massive. As mentioned above, owning an F-150 for one year costs $29,111, more than double the price of a 2018 model at $13,498.
When it comes to insurance, the newer model will run you roughly $3,684 a year. If you’re purchasing a used vehicle, the F-150 will run you approximately $2,864 for insurance. Interest payments, the amount you pay for financing the whole vehicle, also run higher. You’re looking at $4,370 for a new car vs. $3,529 for a used vehicle. As always, you’ll want to account for administrative fees for both the new and used versions of the vehicle.
Why The Significant Difference In Price?
Mark Whinton, an automotive expert and owner of the YouTube channel CarQuestions, recently spoke to rates.ca on the subject. He believes the difference isn’t surprising. He notes that vehicle prices have climbed significantly since 2019, by roughly 30%. To add, Ford recently switched from steel to aluminum, which added some significant manufacturing costs.
Whinton also pointed out that in recent years, Ford has sported a troubling recall record. For the last two years, the F-150 has racked up 29 safety-related recalls.
“Lack of safety means death,” he says. “They’re serious issues: steering doesn’t work, brakes fail, airbags malfunction, and cameras stop working.”
Though the 2018 version has had 15 recalls to date, it still fares better than the newer version. This could sway people to purchase a used vehicle.
“Recalls typically accumulate as a car ages. That’s very typical,” Whinton explains. “A brand-new vehicle usually has none. After four years, you might see a couple, and by 10 years, maybe three or four. But the 2025 Ford F-150? It already has 10 recalls, and it hasn’t even been on the road for a year.”
Toyota RAV4
On the opposite end of the spectrum sits the Toyota RAV4. The total cost of ownership between a new and used vehicle shows a much smaller difference. A 2025 RAV4 costs $12,636 annually, while a 2018 version costs $10,966. This is only a 15% difference. Just like the F-150, insurance and financing account for a chunk of the disparity between new and used vehicles. Insurance on a new RAV4 is slightly higher, while interest payments are similar. It’ll cost you around $2,701 for the 2025 model versus $2,731 for the 2018 model.
To add to this, the RAV4’s maintenance costs will vary widely. A 2025 model averages $429 a year, significantly lower than $1,141 for the older version. Fuel and administrative fees, however, will cost roughly the same for new vs. used vehicles.
Why The Similarity In Price?
Since its inception in 1937, safety has always been a massive part of Toyota. Whinton believes their reputation for safety and reliability is well-earned, stating it’s of much higher quality. He also believes that when purchasing a Toyota, opting for a used model will mean fewer trips to the service department. This ends up being more savings over time. The RAV4 also has a much better recall record compared to the F-150.
“The old Toyota from 2018 has got a total of three recalls,” Whinton noted. In contrast, the 2025 RAV4 has had two recalls so far.
Used Vehicles: Why Does an F-150 Cost Double The Price Used?
If you’re in the market for a used vehicle and price is your primary focus, the difference in model can have a massive effect on what you can afford. For example, Rates.ca recently pointed out that the infamous Ford F-150 is a prime example. For a 2025 model, first-year ownership costs are around $29,111, while a 2018 model costs just shy of $13,500. This is a total cost increase of 116%.
To compare, the Toyota RAV4 is quite the opposite. The RAV4 sees only a slight 15% rise: $12,636 for a 2025 model, compared to $109,966 for the 2018 version.
So, what is the cause of this? Well, it’s a mix of insurance, maintenance, and other expenses beyond the sticker price, or Total Cost of Ownership (TCO).
Conclusion: Are Used Vehicles The Better Option?
At the end of the day, choosing between a new and used car can be difficult. More often than not, it can feel like a trade-off between savings and reliability.
On one hand, a used vehicle will offer significant savings. On the other hand, a new one can provide you with the peace of mind that a full warranty offers.
According to Whinton, the answer to the question of new versus used isn’t always straightforward. In most cases, used cars win when it comes to total ownership. The Ford F-150 is a prime example of this: The 2018 used vehicle costs less than half as much to own compared to the 2025 version. This is due to depreciation, as new vehicles lose a large portion of their value in the first year.
“If someone else takes that depreciation hit for you, you can save quite a bit of money,” Mayer explains.
However, with the Toyota RAV4, for example, maintenance can eat up a lot of your budget. Overall, Whinton states that with a dependable used car, you’ll save a ton of money. With this in mind, it is essential not to go older than five or eight years when it comes to used vehicles. When you reach higher territory, you may have to budget for higher maintenance costs.
Remember, if you have any questions regarding insurance for a new or used vehicle, don’t hesitate to reach out to us at isure. Contact us or request a quote today!
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