Is It Better to Buy a New or Used Car?

August 31, 2020
Posted by: clonsilla

When it’s time to replace your vehicle, you might wonder whether you should look at new or used cars.

Buying a used car offer many benefits, including:

  • A lower purchase price – used cars, even when like new with low kilometers, are much less expensive than new cars. They generally have fewer fees and you won’t be charged for freight and delivery.
  • Less of your hard-earned money lost in depreciation – it’s generally accepted that buyers lose 10-20% of their new car’s value in the first few weeks after purchase. Average depreciation loss is close to 30% by the end of the first year. When you buy used, someone else took the deprecation hit.
  • Insurance savings – insurance premiums are generally less expensive on used cars. Although a new car may offer improved safety features such as blind-spot monitors and sensors, high-tech features mean more expensive repairs on minor fender benders and windshield replacements. This translates to higher average claims costs for that vehicle’s year, make and model and a bigger insurance bill.
  • The potential to move up – when you buy used your budget goes farther and you might find that you move up to a more desirable or luxurious vehicle.

Benefits of new cars include:

  • Dealer financing incentives – you might hear that 0% financing or 6-months with no payments is available on new car purchases as an incentive for qualified buyers with excellent credit.
  • Warranty – all new cars come with warranties to offer peace of mind. Warranties vary and are subject to limits and conditions by manufacturer – it’s important to do your homework and make sure you understand what is covered.
  • Choice – purchasing new means that you can choose the colours, features and options you want in your new car. You may need to wait, but you will get exactly what you ask for.
  • Prestige – the phrase “new car smell” is famous for a reason, there’s a certain prestige associated with new cars.

Whether new or used, maintenance is part of car ownership and both will require routine maintenance. As a car ages, it may need a little more work, but even with these costs added, a used car is usually still much less expensive overall.

If you decide to explore used vehicles, trust Clonsilla Auto Sales and Leasing. We’ll help find the car that’s right for you. We have a large selection. Our vehicles are fully inspected, and we stand behind them with an exclusive warranty. We’ll even detail your vehicle so that even though it’s used, it will look and feel like your new car.