Everybody needs a reliable ride to get to work, pick up the groceries, and drop the kids at school. When you are cruising all the ads for your next new-to-you car, you are probably wondering if buying used could be a smart decision. While there are a wealth of perks that go with a vehicle with fewer than 25 miles (ca. 40 km) on the odometer, you might be surprised at all the positives that can go with a pre-owned ride. Let’s check out the pros and cons so you can make the right decision for you.
That New Car Smell
A brand-new car will be clean, free of dents, and most models come with a bumper-to-bumper warranty ready to take care of any problems for the first 30,000 to 100,000 miles (ca. 160,934 km). It is likely that you will find the latest technology from smartphone connectivity to driver assist features to a suspension that reacts to the road ahead. New engine designs deliver improved fuel economy, which can help you save at the pump every week.
Reduce, Reuse, Recycle
No matter how efficient a new hybrid or plug-in electric vehicle may be, the most eco-friendly option as far as car purchases go is to find a used car that meets your requirements. Better yet, make the repairs to keep your aging car on the road for another year or two. Building a new car expends a huge amount of energy during production, and it is likely replacing another vehicle that is now adding to a landfill.
Paying for Your Transportation
While driving a shiny new car delivers a great boost to your morale, it can make quite a dent on your wallet, and you may be simply paying for the privilege of that new car smell. During the first year of ownership, your new car can lose as much as 20% of its original value. After that first year, it will depreciate at a slower rate. This makes using a car loan to buy a new car less effective compared to a used car loan. Should you want to trade up to a different car after a year or two, you get a better return on your investment when you look at a pre-owned car that is one or two years old.
How Long will It Last?
Finally, if you are financing your car purchase, you need to consider how long the car is expected to stay on the road versus the length of your car loan. The average age of all cars on the road today is eleven years old. If you are taking out a five-year loan on a five-year-old car, there is a good chance the car will die before you pay it off. Consider a shorter-term loan when buying an older vehicle or look at a new car when an extended payment plan is needed for your budget.
New or old, there is a car out there that will fit into your busy Toronto lifestyle. Just remember to consider all the pros and cons before grabbing the first ride that steals your heart.