Deciding whether to buy a new or used car can be tricky. Everyone has different priorities in terms of price ranges and preferred features, and there are advantages and disadvantages whichever way you decide to go.
Advantages of a new car
Buying a new car is an exciting experience for many reasons. Many buyers consider new models because there is no previous damage or wear to worry about. This helps reassure you that you’re investing in something that will provide years of reliable use. Also, the Original Equipment Manufacturer (OEM) warranties that usually come with a new car provide you with peace of mind that you won’t be on the hook for major repair or maintenance costs any time soon.
New cars are more likely to come with the latest and greatest features, from interior amenities to advanced safety systems. Plus, when you buy new you can order custom, providing personalized options that you just won’t find browsing pre-owned inventories.
Disadvantages of a new car
You probably love your new car when you first pick it up – but new cars have some drawbacks too. Vehicles are a depreciating asset, and when you buy new, that depreciation starts the minute you drive off the lot. On average, it takes just four years for a vehicle to lose roughly half its value.
Advantages of a used car
The main benefit of buying pre-owned is the lower price. Buyers who are in the market to save a bit of money usually shop for pre-owned models rather than new ones.
A used car can offer better value with lower monthly payments and lower insurance rates. Buying used can also help you avoid many of the additional fees attached to new cars, like freight and extra taxes (depending where you live).
If you want to combine some of the benefits of buying new and used, consider looking for a certified pre-owned (CPO) vehicle. These units are typically only a couple of years old, have lower mileage and come with manufacturer warranties. Learn more about CPO programs and their benefits here.
Disadvantages of a used car
Without the proper information, buying used can come with some uncertainty. Purchasing a vehicle that has had a previous owner raises questions about how it was cared for and whether it sustained any damage. You can rely on a pre-purchase inspection and a CARFAX Canada Vehicle History Report to give you detailed insight into the vehicle’s past.
It’s important to know about maintenance and damage history when you are car shopping – but it’s also key to find out if the car has an active lien. A lien is an interest in a vehicle that is granted to another party as collateral, and this can be enforceable against future owners of the vehicle. CARFAX Canada reports can alert you to outstanding liens on a vehicle, which will give you confidence and peace of mind that you’re making a smart purchase. Get more information about liens here.
Buying new or used is a personal decision that most people will make sometime in their driving career. To decide, make a list of your top priorities and concerns and consider the information provided here.