Should You Buy Your Car New or Used?

Buying a car is one of the biggest purchases you’ll likely ever make. The first question to start with is whether to buy a new vehicle or a used one. Each option has its advantages.

Buying a Smaller Car in Ontario?

WHY TO BUY NEW

Made to Measure — You get to pick the kind of car that you want — with all the latest features and accessories that you want.

Unblemished History — A new car has no wear and tear on it. It’s not been damaged in accidents or suffered ill effects from a history of road usage.

Warranty — You get the manufacturer’s warranty with (at least) a full three years on it. (Yes, you can buy warranties for used cars, but the best warranty you can have as part of the purchase price is the one that accompanies a new vehicle from the automaker.)

Maintenance — A new car won't require maintenance until you’ve driven it several thousand km, and even then only an oil change and tune-up should be necessary. You won’t have to replace the battery, brakes or tires for at least the first few years.

Safety — The newest cars are more likely to have the latest safety systems available, whether mandated by legislation or demanded by consumers.

Higher Fuel Efficiency and Lower Emissions — Newer also means better in terms of Km per liter and eco-friendliness.

Financing — Banks offer lower interest rates on new cars because they are usually worth more and haven’t begun to depreciate.

Convenience — When you’re looking for a new car, the salesperson can do most of the legwork in seeking the model you want. But if you’re looking for a used car, you have to do all the searching, whether on the Internet or in used car lots.

WHY TO BUY USED

• Price — If you don’t have a budget for a five-figure purchase, then buying a used model will mean you’re getting the most car for the least cash. For less than one-half the price of the average new car, you can buy a three- or four-year-old used car that has more room and features than a comparably priced new one.

• Depreciation — A new car will lose a significant chunk of its value the moment you drive it away from the dealership. With a used car, there’s no such concern.

• Insurance Rates — As with financing, insurance rates are impacted by how old the car is, but this time the used model tends to be less expensive.

• Choice — While you can’t order a used car built to your specifications, to order, buying used may enable you to acquire a model, option package, or even wheel design that’s no longer being made.

Ultimately, the decision on whether to buy new or used comes down to issues such as affordability, reliability and safety.

For information about PRUDENT VALUE CARS visit www.prudentvaluecars.com