No matter how you slice it, cars are expensive. Because of this, people continuously look for ways to make them cheaper. One of such ways involves buying used vehicles, which retail for a significantly lower price than new ones.
Consumers also prefer used cars because they don’t depreciate quite as quickly new ones. However, the gap between the two in this aspect isn’t as significant as some people believe, rendering this whole reason somewhat moot.
And sure, used cars may be cheaper, but they sacrifice several useful perks to be that way, which may cost you money in the long run. In other words, used cars aren’t always a good investment. Here’s why:
Reason #1: No Warranty
All new cars come with manufacturer warranty that guarantees maintenance and repairs for up to 160,000 kilometres (depending on the warranty). So, as long as you keep your end of the agreement by performing regular oil changes, tune-ups and so on, the dealer or manufacturer will address any and all potential problems.
Used cars, on the other hand, usually don’t offer any kind of warranty unless they are “certified,” in which case they cost more than their uncertified peers. It’s also possible to extend the original warranty for a fee, but in the case of new cars, the cost is already included in the retail price.
Reason #2: Shady History
One of the most important aspects of any used car is its history. If the previous user has kept it in an excellent condition, then you have nothing to worry about, but that’s not always the case. For instance, some used vehicles are sold after suffering an accident or being inadequately repaired. In one particularly controversial case, a dealer has sold a 2004 Chevrolet Monte Carlo that was reassembled out of two different vehicles. Cases like these don’t happen often, but they are certainly possible.
Many Canadian used-car buyers utilise resources like CarProof to obtain this kind of information, but car history reports aren’t always compete since not all owners always report every single incident. Furthermore, some cars get multiple owners over the course of their lifespan, and it’s likely that one may not be aware of what another has done with the vehicle while it was in their possession.
Reason #3: Outdated Tech
The older the car, the more outdated it’s likely to be. Over the course of the last 10 years, the auto industry has made tremendous leaps forward in terms of the kind of features a vehicle can offer. And the developments haven’t stopped there. In fact, car makers add new features every year. As such, even a two-year-old car may not have all the tech gadgets that its modern counterpart is taking for granted.
The biggest shift that’s happening right now is that a lot of advanced features are becoming standardised. Even budget vehicles nowadays get stuff like active park assist, cruise control and touchscreens. So, if you’re buying a used car, you may be missing out on some of these.
Reason #4: No Options
One of the biggest perks of getting a new car is the ability to choose your own trim level, colour, features and other options. In fact, all you need to do is configure your vehicle on the manufacturer site or here Unhaggle, and the vehicle is as good as yours. Unfortunately, you can’t configure a used car the same way. This means that whatever you can find is what you’ll get. It’s not always necessary to configure a vehicle, but if you’re hunting for a specific feature or package, then you may not always be able to find it.
Reason #5: Extra Repairs
When you purchase a new car, you normally don’t have to worry about any major repairs for the first few years. That’s because new cars don’t really break. Once they age, however, they begin to require more and more of your attention. Used cars are typically already a few years old, meaning that they will need major repairs sooner than new ones, which can cost quite a bit of money – unless you purchase an extended warranty (and it isn’t free either). With a new car you can use it for a few years and then sell it before it would need any major repairs.
If a hefty price sticker is what’s stopping you from buying a new car, then perhaps you haven’t seen any good deals yet. So, go ahead and check out our latest incentives below – just keep in mind that they expire on March 31.
2015 Toyota Corolla S CVT
Total Savings: $1,916
Manufacturer Incentive (After Tax): $885
Unhaggle Savings: 1,031
Mandatory Fees (Freight, air tax, etc.): $1,655
Total Price Before Tax: $20,149
2015 Volkswagen Golf 1.8 TSI Highline 6AT Tiptronic
Total Savings: $1,570
Manufacturer Incentive (After Tax): $500
Unhaggle Savings: $1,070
Mandatory Fees (Freight, air tax, etc.): $1,740
Total Price Before Tax: $30,065
The incentives above are for cash purchases only! For more information on financing and leasing incentives, consult the Unhaggle free dealer cost report.