WHY BUY A USED CAR IN 2022?
There has always been a preference for buying new cars among people and Canadians have not been any different. However in the past few years there has been a gradual shift to buy used cars, and the market size has definitely increased. A few examples of why people like to buy used cars could be: a second car for the household, people with budget constraints or even those who simply want a specific year of vehicle that they fell in love with when it was originally released.
When buying a car a lot of important decisions need to be taken into account. Primarily the make, and model they want and are they willing to compromise on that. What kind of financing is available and is the insurance affordable? Given all the factors, buying a used car actually has several advantages over buying a new one.
Brand new cars begin to depreciate the moment you buy them and take them on the road. Generally, most new cars depreciate about 30% to 40% in the first 2 years alone. After the initial 2 years the depreciation tends to A new car owner would have already absorbed the initial cost and by the time the car is in the market again the cost is much lower hence making them significantly cheaper than new cars. This means, that the down payment will be small, the loan will be small and there will be an option for it to be paid quicker which will save money on interest as well. So buying a used car is a very sound decision economically.
When shopping for a used car, there is a wide variety of make, model and years to choose from and not just the few new vehicles that were released in the recent years. Every year, car companies either introduce new models or release updated versions of older models. Even though there are quite a few models to choose from, some are often discontinued or made to be worse as part of pushing the newest versions more to the consumers. So when you buy a used car, you don’t only have an abundance to choose from, you can also choose models from previous years and the one that suits you best!
When a brand new car comes out in the market there is technically no data available that shows its performance in the long run. This can only happen after the car has been on the road for a few years and there is a significant amount of data. Logically, when you buy a used car, you have access to how well that car performed over the years. Also, dealerships have access to a detailed car report through vehicle identification number or VIN which is always disclosed to the customer. In fact, carfax provides a full history of the vehicle which includes what the car was used for previously (such as a previous daily rental, or perhaps a police vehicle), any accidents or recalls and also, relatively new to Carfax, when the car was serviced.
When buying a car, having a warranty is always a good idea. Many people cite having a ‘new car warranty’ as one of their top reasons to buy new. However most used car dealerships offer an optional extended warranty. This allows you to tailor the warranty to your needs (don’t pay for more than you want/need) but also the cost of an extended warranty contract combined with lower upfront cost of a used car means you will likely save thousands and still have great warranty coverage!
New car purchases infamously include additional fee’s that are not included in the MSRP. The most famous one – freight and PDi – can cost you additional thousands of dollars. With a used car – there are no ‘additional’ fee’s – just add on license plates and taxes.
For an insurance company replacing a used car is always cheaper than replacing a new car hence you might get better rates with used cars. However that being said, insurance definitely depends on region and province as well as your driving history.
The used car market in Canada is very strong and growing right now and the experience of buying a used car can be quite similar to buying a new car. Facebook Marketplace, Kijiji, Autotrader are the main ones available online but there are a lot of reliable dealerships and online retailers to buy cars from. Eknors Auto is one such reliable dealership in Guelph serving areas including Guelph, Cambridge, Kitchener, Waterloo, Fergus, Hamilton, Milton, Mississauga, Toronto, London, Windsor, Woodstock, Elmira, Burlington, Georgetown, Brampton, Oakville, Stratford, Brantford, Barrie, Owen Sound, St Catherines and Southern Ontario.
Contact Information
Fax:(519) 767-9998
Guelph, Ontario,
N1K 1A7
