INDUSTRY INSIDER: NEW VS. USED DEBATE
Some second-hand rides may not be the dollar savers you expect
For many looking to buy a vehicle, choosing used seems like a no-brainer. In tight economic times, the price on a used vehicle can be incredibly appealing.
According to statistics from DesRosiers Automotive Report, used cars make up about two thirds of all vehicle sales in Canada. However, with the potential for mechanical problems, ownership issues, and other disadvantages, used vehicles may not be the best choice for everyone.
First of all, it’s worth considering how long you plan to keep your new-to-you vehicle. If you’re looking to keep your car for six, seven, or even 10 years, it may be worth it to invest in a new model, which will provide you with the most up-to-date safety and entertainment technology, as well as a warranty if anything goes wrong.
New vehicles also offer endless options. You can purchase any make or model you’re interested in, and add on the exact features you want. When buying used, choices can be limited to the vehicles in your area. The premium used vehicle — less than five years old with low mileage — has been in extremely high demand in recent years, leading to higher prices across the market. This means some used vehicles might not be quite the dollar savers you expect.
Used vehicles also offer more limited financing options. New vehicle purchases often promise deals such as zero per cent financing for a period of months, or cash rebates. But with used purchases, you’ll almost always be hit with a higher rate.
Finally, there is a very slight chance a used vehicle will have ownership issues. For example, if the previous owner still owes money on the vehicle, your car can be seized by the finance company. These issues can be avoided by tracing the title of the vehicle you’re looking to buy.
Of course, purchasing a used vehicle has advantages. If you find a quality car for a good price, you’ll most likely save money in the long run. The key is to make sure you know of any problems with the vehicle before you sign the dotted line.
If you do decide to buy used, get the vehicle thoroughly examined by a professional mechanic you trust. These checks not only alert you to current issues with your potential purchase, but to problems that may appear in the near future.
It’s also essential to get a vehicle history report for any car you’re considering. If the current owner can’t supply the report, it pays to purchase it from an outside provider such as CARPROOF.
Another important tip is to look for pre-owned vehicles with a manufacturer’s seal of approval. Some manufacturers offer programs that examine pre-used vehicles to ensure they have low mileage, a clean vehicle history, and no mechanical issues. The certified vehicles that pass these stringent measures are sold through our New Car Dealers, and many even come with an extended warranty.
Whether you decide to go with new or used for your next vehicle purchase, remember to look into all your options to ensure the vehicle you’re buying is right for you. If you do decide to look for that perfect new ride, be sure to check out the Vancouver International Auto Show, which will show off the best new makes, models, and technology from March 23 to 27, 2016.