A Buyer’s Guide to New vs. Used Cars: What’s the Better Deal?

Autos Consultants ultimately buyers guide for New vs Used cars

The True Cost of Buying a New Car: Depreciation Explained

New cars lose value fast. It’s not just a saying — it’s a fact backed by data:

• A new car can lose up to 11% of its value the moment it leaves the lot

• By the end of year one, most vehicles will have depreciated by 20% or more

• After five years, vehicles typically depreciate by 50–60%

For example, a $40,000 car might be worth just $16,000–$20,000 five years later and that’s without major accidents or issues.

Factors That Affect a Vehicle’s Depreciation

Whether you buy new or used, the following impact your vehicle’s resale value:

• Mileage: The more kilometres, the lower the value

• Condition: Cosmetic wear and tear matters

• Accident History: Damage reports reduce resale value

• Service History: Regular maintenance protects long-term value

• Ownership: Fewer previous owners is generally more desirable

The Advantages of Buying a Used Car

Buying a used car allows you to skip the steepest part of the depreciation curve often saving thousands off the price of a similar new model.

Benefits of Buying Used:

• Lower purchase price with many of the same features

• Reduced depreciation: value holds steadier over time

• Wider selection of models in your price range

Break down of the pros and cons for New vs Used

What About Buying or Leasing a New Car?

While used cars offer better value upfront, buying or leasing a new vehicle comes with its own set of advantages especially when it comes to financing and depreciation protection.

Benefits of Leasing or Financing a New Vehicle:

• Manufacturer Lease Programs: Many brands offer lease deals that shield you from long-term depreciation. You return the vehicle at the end of the lease without worrying about resale value or accident history impacting trade-in value.

• Lower Interest Rates: New vehicles usually qualify for much lower interest rates than used cars. In fact, many manufacturers offer 0% or low APR promotions to attract new car buyers.

• Full Warranty Coverage: New vehicles come with comprehensive factory warranties, reducing your out-of-pocket repair costs in the early years of ownership.

• Latest Tech and Safety Features: Enjoy the newest features in fuel efficiency, safety, and connectivity.

If you prioritize low monthly payments and plan to switch vehicles every few years, leasing a new car could be a great fit.

Car models will get full makeovers every 5-7 years depending on the brand

Final Thoughts: Should You Buy New or Used?

If you are someone that drives a lot and will consume the car’s tires, brakes, spark plugs etc over a 3-5 year period then you are a good candidate to lease a new car. You’ll most likely not have much for maintenance and repairs and have a vehicle with the latest technology.

If you are someone who only drives a few thousand kilometers per year and does not need to have the latest and greatest then you are better off in something second hand 

Unsure what the best fit is for you and your lifestyle? Reach out to Autos Consultants today and we’ll help you decide.