Should I Buy a New or Used Car?

In the market for a vehicle? You might be wondering whether it's better to buy a new or used car.

The truth is, there is no "better." Both new and used cars have pros and cons. It really depends on your personal needs, preferences and budget.

New cars are usually more expensive, but they come with the latest features and a warranty against mechanical failure. Plus, there's no substitute for that new car smell!

On the other hand, used cars are more affordable, which can be a smart financial decision. However, used cars might have some wear and tear or more potential for mechanical issues.

So which is right for you? To help you decide, let's weigh the pros and cons of new and used cars:

Pros and cons of buying a new car

Here are some of the perks and drawbacks of getting behind the wheel of a new car:

Pros

New cars are customizable

One of the most exciting aspects of new car shopping is being able to customize the vehicle. You can choose a colour, add on extra features and really make it your own. With a used car, you're limited to what's available on the secondhand market.

New cars are worry-free

Statistically speaking, new cars tend to be more reliable than used models, meaning you're less likely to experience mechanical failures in the first few years. And new cars come with comprehensive warranties, so if there is a problem, it's not likely to cost you an arm and a leg. Plus, many new cars now come with free roadside assistance, giving you peace of mind on road trips and snowy days.

New cars are up-to-date

Today's vehicles come equipped with the latest tech and advanced safety features. If modern driver's assistance technologies and an up-to-date infotainment system are at the top of your wishlist, you may be happier with a new vehicle.

Cons

New cars are more expensive

Perhaps the biggest distinction between new and used cars is the cost. Unless you're looking at rare or classic vehicles, a new model is almost always going to be more expensive than a used one. New cars are also more expensive to insure, which is an important thing to keep in mind when considering your budget.

New cars depreciate quickly

There's an old adage that new cars lose value as soon as you drive them off the lot. And it's true. A new car loses 10% of its value almost instantly and continues to lose value rapidly over the first few years, with most dropping 40–50% within the first five years. And remember, new cars are only new for a short period of time. Once you start driving a car, it quickly accrues wear and tear. Your new car may not stay new for long, but your financing payments will remain at that new car level until you pay it off.

Pros and cons of buying a used car

Used cars also have advantages and disadvantages. Here are some to consider:

Pros

Used cars are less expensive

The main reason many drivers opt for used vehicles is because they're known to be more affordable than comparable new models. Whether you're on a tight budget or want to get behind the wheel of a premium car for less, a used vehicle can be a great budget-friendly choice.

Used cars depreciate slowly

Compared to new vehicles, used cars depreciate at a much slower rate. New cars lose a significant amount of value in the first few years, but after that point, the depreciation slows down. By buying a used car, you avoid that period of rapid depreciation. So, if you want to sell in a few years, a used car might be a better investment.

Used cars cost less to insure

When it comes to used cars, the savings aren't limited to the purchase price. Many secondhand vehicles are also cheaper to insure. New cars have higher replacement values with higher insurance premiums to match, while insurance companies tend to charge less to insure used vehicles.

Cons

Used cars may cost more to maintain

Some used cars may still be under warranty, but older vehicles or ones with high mileage may no longer have coverage. That means you could be responsible for any repair costs. You may also find that used cars can have a significant amount of wear and tear, making future repairs more likely.

Used cars may be outdated

Depending on the age of the vehicle you're interested in, the tech and safety features may be out of date. Safety requirements are updated regularly, so newer cars tend to have more comprehensive safety systems and driver assistance features. And on the infotainment side, older cars may not have the smartphone connectivity many of us are now used to, though vehicles from the mid-2010s onwards tend to have fairly modern tech.

Finding the right used car can be time-consuming

While buying a new car can be as easy as walking into a dealership and putting in an order for a customized vehicle, buying used is rarely that simple. Rather than having a car built for you, you'll need to search local dealerships and online listings for a vehicle that suits your budget and preferences. Once you find a car you like, it's time to do your due diligence. Before buying a used car, experts recommend doing a comprehensive test drive, checking the vehicle history report and having a professional pre-purchase inspection.

Sound stressful? It doesn't have to be. Kijiji Autos simplifies used car shopping with thousands of cars available at your fingertips and helpful advice on how to buy a used car.

Consider a certified pre-owned vehicle

Splitting the difference between new and used cars, a certified pre-owned vehicle can be a great option. These "good as new" used cars are more affordable than new cars but come with similar perks, including extended warranties, low mileage and the dealer's guarantee that the car is in great condition.

Ready to accelerate your car hunt? Browse Kijiji Autos for new, used and certified pre-owned vehicles for sale in your neighbourhood and across Canada.