Everyone is in love with the smell that new cars offer, but more often than not what people don't enjoy are the monthly bills that come with it. While owning a brand new vehicle is great, buying that same model pre-owned is a lot better for your state of mind and for your wallet. There are so many benefits that come with buying a used car in Toronto over a new one. To learn about what they are, Nexcar Auto Sales & Leasing has listed some of these advantages below.
Minimal Depreciation
The moment you drive a brand new vehicle off the lot, it loses 20% of its value. That’s right - by simply taking your car from the dealership to the nearest corner, it is already worth 20% less than you originally paid. Cars also lose about 10% of their value within their first year, which means that you are losing out on 30% in less than 12 months.
Buying a car that is already 2 to 3 years old will allow you to skip out on major depreciation. Most people that buy a pre-owned car are still able to sell it for close to the purchase price even after driving it for a couple of years. Proper research can help you choose a make and model that holds its value in addition to being an attractive choice.
Lower Car Registration Cost
Your car registration cost varies depending on the type and age of the vehicle. Older and pre-owned cars have a lower registration cost that is based on the total amount you paid for your vehicle. Of course, if you pay a high price for your car, such as is the case with a brand new vehicle, registration will cost more too.
Lower Car Insurance
Car insurance premiums are always going to be higher on a brand new car than on a pre-owned vehicle. Insurance companies place a lower value on used cars and assign them a lower repair cost as well. For new cars, not only will you experience a 30% drop in its value and higher registration costs, but you will also need to pay higher insurance premiums to keep it on the road. Sadly, even after the first year, your insurance rates won’t be reduced. They will stay as high as when you first drove your car off of the lot.
Enjoy Your Upgrades
Upgrades on used cars will end up costing less than if you were to seek the same features in a new model. Instead of settling for a new car with fewer features, you can buy a pre-owned car that has a boatload of luxury upgrades. Even if you are not able to find a pre-owned car with all of the features you desire, aftermarket upgrades are typically still more affordable than new car upgrades. By purchasing used and saving money, you can allocate more towards upgrading your pre-owned car with the features you love.
Our Final Thoughts on Pre-Owned Vehicles
When you look at all of the pros and cons of both new vehicles and used vehicles, most come to the conclusion that buying used is not only the more affordable choice, but the most wise one overall. Regardless of all its benefits, however, this decision will all depend on your preference and you want to make sure you do what is best for you. If this blog post has piqued your interest in terms of purchasing used cars, however, you're in luck because we here at Nexcar sell used cars for a great deal. Don't believe us? To learn more about how our team can help you get the car of your dreams, be sure to contact us or visit our Toronto Used Car Dealership today. We look forward to hearing from you!
