The used car industry in Canada is reportedly worth $10 billion, according to estimates by IBIS World, the US-based provider of industry research. The report also adds that the industry experienced annual growth of around 7.5% between 2013 and 2018. With dozens of automobile manufacturers introducing the latest models almost every month, how does it make sense to spend money on used cars for sale? Why would anyone buy a used car when there are such attractive discounts on a newer car? We list out four advantages of buying a used car:
• Slower Depreciation:
We all know that newer cars depreciate quickly. In fact, you lose as much as 11% of your car’s value the minute you drive it off the lot. Within the first year, some car models lose as much as 40% in their first year. Within the first three years, you could lose up to 54% of its value. Of course, some cars do not depreciate that much, but such cars are rare.
• Cost Savings:
This is the most obvious benefit of owning a used car. A two or three-year-old car will cost around 30% less than the same car when purchased new. And if you’re buying a four-year-old model, you can save as much as 40% of the car’s original value. This could translate into savings worth thousands of dollars. If you’re keen on buying your dream car, we’d suggest buying a two or three-year-old model. This way you aren’t compromising on the latest features and get to save money as well. For example, if you’re in luxury cars, buying a new BMW 2 Series Coupe could set you back at least by $40,000. But you could buy the same car, albeit a slightly dated version for around $20,000.
• Better Deals:
Thanks to increased competition, used car dealerships across Halifax are offering some great deals. You could either approach the bank or a credit union for loans. But if you need to strike gold, try contacting a used car dealer. For example, we not only offer easy financing options but also provide cashback offers and discounts to certain clients. If you’re new to the country or a student, you could be eligible to as much as $1000 discount. There are special deals for customers in bad or zero credit situations. We could also help you build your credit report.
• Better Inspection:
We now have better ways to inspect vehicle history. You can use the car’s VIN to know the number of previous owners, previous registration status, i.e., if it was on the lease, or was for personal use, was used as a taxi, etc., if the car has a history of accidents, flood, etc. The VIN can also be used for mileage validation. Unlike the situation a few years ago when used car deals were based on trust and faith, you can now buy a used car after knowing its complete and detailed history.
But sometimes, even after a thorough inspection, you could end up with a lemon. To avoid such problems, we suggest buying cars only from a reputed used car dealer.
