915 WALKERS LINE, Burlington, ON, L7N3V8, Canada
My Garage

Car buying tips for Canadians: New vs Used

Car buying tips for Canadians: New vs Used

Canadian consumers are facing some distinct challenges with inflation at epic highs and the Bank of Canada raising interest rates, trying to trigger a recession to stop inflation.

One of the biggest challenges you will encounter is the need to buy a car because, in Canada, you can’t go anywhere or do anything without a car for most Canadians.

Making the case for buying a used car

While everyone would love to have a brand new vehicle, for some Canadians, their situation and needs do not merit the purchase of a new vehicle.

Throughout the pandemic, most of us worked from home, and the most driving we did was buying groceries.

Now that the world is starting to return to normal, you may have to go back into the office, if only a few times a week. If you and/or your spouse both work, then you may need a 2nd vehicle, but it doesn’t have to be new, just something reliable and good on gas.

When you buy a used car, you are able to limit the total amount of depreciation that will take a chunk out of the residual value of the car.

The amount of money you lose to depreciation on a new car could cover the cost of a decent used car!

Less money to borrow means less interest to pay

Since you are borrowing less money to finance the purchase of the used car, you don’t have to service the loan as long; this means you are saving money on the interest, which benefits you over the long term.

Used car prices have stabilized

While new car prices continue to rise due to inflation, used car prices already have inflation baked into the asking price.

The demand for used cars has reduced as the sheer number of qualified buyers has dwindled due to rising interest rates.

This lack of cheap credit makes it harder to finance the purchase of used cars, so you are able to get a bargain provided you are on a strong financial footing.

Where to get the best deal on a used car in Canada

If you were going to say AutoTrader, eBay, or some other website, you would be mistaken. While shopping online for most products is a great way to find a bargain.

When shopping for a used car, you should think local.

When going through a local used car dealership, you have peace of mind knowing the dealership is able to provide you with top-notch customer service (provided you selected a dealership with a great reputation)

The same dealership will be able to help you find a competitive used car loan by shopping around with all of the various lenders throughout Canada.

By following this local approach, you are able to find the used car that best suits you and your budget.

Contact Unique Chrysler for help, advice and competitive car finance and leasing.

Categories: Auto Loan

Tags: ,