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Also, your new vehicle’s value dips another 17.5% in year two. Your best bet is to plan on buying a used car in Ontario and letting the original owner eat the depreciation. Buying a used car in Ontario can skirt the bulk of the depreciation issues, but it’s not without its own difficulties and concerns. Below we outline how to buy a car in ...
- Factors to Consider When Deciding Between A New Or Used Car
- Pros and Cons of Buying A New Car
- Pros and Cons of Buying A Used Car
- Conclusion
1. Budget
Budget is often the most significant factor. New cars generally cost more upfront, whereas used cars can be more affordable. However, consider not just the sticker price but also financing options, insurance costs, and potential repair expenses.
2. Depreciation
Depreciation refers to how much value a car loses over time. New cars depreciate rapidly, losing a significant portion of their value in the first few years. Used cars have already undergone this initial depreciation, which can make them a better investment in the long term.
3. Warranty and Maintenance
Warranty and maintenance considerations are crucial. New cars come with manufacturer warranties, which cover major repairs and issues for a certain period. Used cars might have limited or no warranty coverage, potentially leading to higher out-of-pocket maintenance costs.
Pros
1. Latest Technology and Features: New cars come with the most recent advancements in safety, entertainment, and fuel efficiency. 2. Manufacturer's Warranty: Most new cars come with comprehensive warranties, covering repairs for several years. 3. Customization Options: You can choose the exact specifications, color, and features you want. 4. Lower Maintenance Costs: New cars typically require less maintenance and fewer repairs in the first few years. 5. Financing Benefits: Often, new car loan...
Cons
1. Higher Purchase Price: New cars are more expensive than used cars. 2. Rapid Depreciation: New cars lose a significant portion of their value as soon as they are driven off the lot. 3. Higher Insurance Costs: Insurance premiums are generally higher for new cars due to their higher replacement value. 4. Limited Room for Negotiation: Prices for new cars are often less negotiable compared to used cars.
Pros
1. Lower Purchase Price:Used cars are generally more affordable than new cars. 2. Slower Depreciation:Used cars have already experienced the steepest part of their depreciation curve. 3. Lower Insurance Costs:Insurance premiums are typically lower for used cars. 4. Wider Range of Options:You can find a broader range of models, years, and features within your budget. 5. Room for Negotiation:There's often more flexibility to negotiate the price of a used car.
Cons
1. Potential for More Repairs:Used cars might require more frequent maintenance and repairs. 2. Limited Warranty:Used cars may come with limited or no warranty coverage. 3. Unknown History:Unless you buy a certified pre-owned vehicle, it can be challenging to know the full history of the car. 4. Older Technology and Features:Used cars might lack the latest advancements in safety, fuel efficiency, and entertainment features. 5. Higher Interest Rates:Financing rates for used cars can be higher...
Whether to buy a new or used car in Canada depends on your individual circumstances, preferences, and priorities. New cars offer the latest technology, lower maintenance, and warranty coverage but come with a higher price tag and faster depreciation. Used cars provide a more budget-friendly option with slower depreciation and lower insurance costs ...
File a claim for compensation. The Motor Vehicle Dealers Compensation Fund protects your deposits or payments up to $45,000, if a registered dealer fails to deliver on any part of the purchase or warranty. You can apply for compensation up to 2 years after the dealer refuses or is unable to return your payment. How to apply for compensation.
When considering the best time to buy a car in Canada, it’s good to keep in mind that the best months to buy new cars are also good months to buy used cars. In general, the best months for buying a used car in Ontario are: September. October. November.
Jul 8, 2022 · According to Statistics Canada, Ontarians bought more than 665,000 new motor vehicles in 2021, worth a staggering $32 billion. In Ontario, buyers are protected by legislation that makes a vehicle ...
May 6, 2024 · According to a National Post article from February 2024, the average cost of a new car was $66,979, nearly 33% higher than the price mentioned in a February 2019 article, which was $45,255. Used vehicles have also become more expensive, with an average price of $38,451; in February 2019, it was $26,331. Choosing the best used car to buy may ...
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Feb 5, 2021 · For the most part, though, a new car is going to be more expensive to insure, just because it is worth more right now. Damage or theft means a heftier replacement cost for most new cars. Put it this way. If your used clunker gets stolen, the insurance company might only have to pay you back $4,000. If your brand new car gets taken off your ...
