NC) When it comes to buying a car, the first question that usually comes to mind is whether to buy a previously owned vehicle or something fresh off the lot.
With market trends closing the price gap between new and lightly used vehicles, and the ability to compare new and used side by side on marketplaces like Autotrader.ca, there are compelling reasons to buy new or used.
“For many car shoppers, this is the hardest question they’ll have to answer,” says Michael Bettencourt, managing editor of Autotrader.ca, Canada's most comprehensive automotive marketplace. “There is no one right answer, because it is based on each person’s unique needs, taking into consideration factors such as budget, lifestyle and personal taste.”
New cars offer important benefits, such as lower interest rates, reliable monthly payments and the ability to get exactly what you want, without any compromises on colour, accessories or add-ons. You’ll also get the added benefit of peace of mind with factory warranties, roadside assistance and the knowledge that you are the first and only owner.
On the other hand, buying a new car can cost more in the long run and depreciation – the biggest expense for car owners – will hurt the value of the vehicle as soon as it’s driven off the lot.
Buying used helps you save money by avoiding new car taxes and depreciation, because someone else has already taken on most of the initial depreciation costs. While the level of uncertainty that comes with buying used may keep some people away, you can shop with a certified pre-owned program to mitigate any unseen issues and an extended warranty can be added for a cost. If you’re buying used, it’s a good idea to complete a pre-purchase inspection to make sure you know what you’re signing on to before picking up the keys.