You’ve made the decision to buy a car. Now, it’s a matter of figuring out if it’s a new car that will meet your needs, or if buying used is a better option for you. If you aren’t sure, consider the few tips below that will help you out!
Buying a New Car vs Buying Used
1. Lower Interest Rates – ok, I know, we aren’t buying an interest rate here, we’re buying a new car, however, it’s still something you should think about. Rates on a new car “tend” to be lower than they are with a used car. If you’re financing a used car it is typically through a Bank, whereas a new car can be financed through the Manufacturer (example: Ford Credit) or a Bank.
2. Manufacturer/Dealer Incentives – throughout the year you will find that the Manufacturer will offer incentive programs, like the Ford Employee Pricing that is on the go right now.
3. You’re the Original Driver – because you are the first owner, you know how the car is/was driven and you know that it is being maintained properly. With used however, you could be the second, if not the third or more owner. You’ve done all your due diligence but if the previous owner(s) serviced the vehicle at Midas, Canadian Tire or somewhere else, you have no idea what they did or didn’t do.
4. Full Warranty – if something goes on the new car, you have your coverage to protect you. If you’re buying used and depending on the kms and when the car was initially put on the road (in service date) you could be out of warranty. If you didn’t purchase an extended service plan then you’re on your own. If you’re thinking, “hmmm no worries there is a 60 day warranty from the dealership” I’m good. Don’t assume that, because typically there is nothing from the Dealer. Now, if you have only had the car a couple of days and something goes wrong, then of course bring it back to the dealership and explain what has happened, but if it has been a couple of weeks or more, you’re on your own, unfortunately.
5. Selection – with a used car there is only ONE in that colour, with those kms on it and with those specific options. When buying a new car you have many in that colour, those options and if the car you want isn’t on the lot, one can be ordered (depending on where you are in the model year) or brought in from elsewhere.
Buying a new car vs buying used does have a few advantages, but again, it depends on what you intend to do with the car. If you are looking at a second car which is basically a “grocery getter” then of course buying a new car won’t make much sense. If, however, it is a replacement car that will been driven every day, it doesn’t hurt to check out all your options.
When you were on a dealer lot last, did you ask for a comparison between a new car and a used one, just to see if there is an advantage? Had the sales person mentioned to you what the incentives are on buying a new car?