While looking for a newer vehicle, there are many decisions that you are to make. One of which is – will your vehicle actually be ‘new’ or “used’? The following are some pros and cons you can consider as you decide on the better option for you.
The Pros and Cons to buying a New or Used Vehicle in Canada
What are the benefits of buying a new vehicle?
1. Better Safety Features
One of the main reasons for purchasing a new car is that they come with new and improved safety features. The advanced computer technology available in newer models enhances safety, as well the driving experience. Therefore, if you go for the newest model possible, you are likely to enjoy features such as rear-view cameras, blind-spot and lane monitoring systems, and stability control which are not easily available in older models.
2. Enhanced Fuel-Efficiency
Many individuals have a limited budget for gas each month. If your vehicle has improved fuel efficiency, this can help you save money. While many smaller models have been offering drivers this advantage for many years now – other larger vehicles have not. This, however appears to be altered and newer vehicles across a spectrum of models and sizes are also offering more economic gas usage than what was previously made available.
3. Government Incentives
Another reason that may coax you into choosing a new vehicle over a used one is the incentives offered by the government. In other words, various provincial governments have initiated rebate programs for drivers who purchase an electric vehicle, or other environmentally-friendly vehicles such as plug-in hybrid models. These rebate amounts, as well as the availability of the program itself, are eligible to many Canadian car buyers and are designed to help them earn back a tax credit which can be as high as almost $8,000 in some cases.
What are the benefits of buying a used vehicle?
1. Save On The Sticker Price
One of the main reasons for anyone to choose a used vehicle over a new one is the savings on the upfront cost of the vehicle. If you decide to purchase a vehicle even one year old, you could save quite a lot! If you are trying to save money and stick to a specific budget, this can be an effective method of securing that well-needed vehicle, yet not having to overspend.
If you are worried that selecting a vehicle that is a few years old won’t provide enough safety and won’t remain in mint condition for very long – it is important to keep in mind that cars these days are built to be durable for a long time. This should provide some peace of mind to a driver, and the used vehicle you purchase can still enable safe driving conditions.
2. Unhurried Depreciation
A brand new vehicle is believed to depreciate in value by 20% from the moment it is driven off the car lot. Additionally, after year one the value can increase to approximately 30%. To put this into perspective – if you have purchased a new vehicle for $50,000 – then after one year of driving, this vehicle is likely to have depreciated by $15,000. If instead you decide to buy a 1 year old vehicle, as the owner of that vehicle, you can minimize the amount of depreciation it will incur.
3. Reduced Insurance and Registration Fees
One final aspect that might wind up the decision of ‘used vs new’ for you is the fact that when buying a used vehicle you can expect to pay lower insurance costs and in turn, the registration fees will also lessen. Since the value of the car is the paramount factor for assessing the amount you will have to pay for car insurance – buying a used car at a lesser price will also mean lower insurance expenses. Since registration fees are also often calculated based on the price you pay for the car at the time of the initial sale, this typically translates into lower costs. In a nutshell, buying a used car, sold at a lower value means you will also be able to save quite a bit of money on these types of vehicle expenses, which usually augment the total costs associated with owning a car.
Ultimately, this is a scenario where personal preferences and situations can help you determine your choice the best. If you have decided upon the car model or the type of vehicle, your next step should be to contact a car financial loan experts who can help you secure the vehicle financing you will need. With their unique system in getting all credit score approved for a car loan, they can link you up with lenders who can get you the best auto financing in Canada for your situation. It’s the best practical way to re-establish your credit as well. Call 1-855-550-5565 to drive off the vehicle of your dreams today!