4 Undeniable Reasons to Buy a Used Car (Instead of New) In 2024

We are going to discuss some of the most compelling reasons to buy a used car instead of new in 2024.

This is not some fearmongering discussion trying to make you buy something you don’t need. In Canada, you need a car; it is a simple fact of life.

There are some parts of the world where you can get by with public transportation and a bicycle, but that is not an option when there is no public transit and 3 feet of snow on the ground.

Car Prices, Inflation, and You

New car prices in Canada are continuing to rise faster than inflation in certain instances. The reason for these higher prices is that car manufacturers are spending more to acquire the raw materials to build the cars.

Everything from steel, and labor to microchips is more expensive, and those added costs must be passed on to you, the consumer.

While used car prices have risen throughout the pandemic and throughout the middle of 2022, things are starting to stabilize, which is great news for consumers.

Source: WOLFSTREET.com

Avoid Depreciation

One of the best ways to save money is by purchasing a used car; depreciation is one of the biggest expenses you, the consumer, absorb when you buy a new car.

Depreciation is a factor with used cars, but the bulk of the vehicle depreciation occurs during the first two years of ownership.

Source: Credit Karma

More Affordable Financing Options

The two biggest variables that impact how much you end up paying for a car are the amount being financed and how long you need to repay the loan.

With a used car, the total amount being financed is lower than what you need to buy a new car.

Typically, a used car loan is for a shorter term than a new car, so you are reducing the amount and time needed for the car loan, so you will be able to save more money.

Dealerships Offer Great Deals

Used car dealerships are offering great deals to move inventory so they can make room for new cars.

With interest rates on the rise, most Canadians are opting to sit on the sidelines, which creates a great opportunity for you to get a great deal.

Canada inflation and interest rates over the years. Source: https://www.reuters.com/business/finance/hike-or-not-its-toss-up-ahead-bank-canada-rate-decision-2022-01-26/

With fewer buyers looking for used cars, the dealerships are super motivated to get you a competitive deal and will work with their network of lenders to make something happen.

You can stack the odds in your favor by making sure your credit score is high; having a high credit score will open up doors and make your used car buying experience a truly memorable one.

Contact your local car dealership today and start test-driving the used cars that are currently available.

If you're ready for a car loan in Southern Ontario, we'd love to help! simply fill in the form below to get started.