How to Invest into a Pre-Owned Vehicle Wisely

used car buy

Although many new car owners dream of owning a new car, most people opt for a used car mainly due to limitations in their budget and also taking into account their lifestyle needs. To get the best value for their money, buyers of used cars in Canada need to look out for these tips.

Buyers of used cars can use two ways to get their dream car, either getting it from a private owner directly or from a dealer. Dealing with the owner directly maybe cheaper but then there is increased level of risk as the car will cease having a warranty. Also, it is hard to tell the reliability and safety conditions of the car.

While most Canadians are using online directories due to the ease of detailed search, it is crucial for used car buyer to first try as much as possible to know the kind of vehicle they require before starting the search. Decide on whether you require a small, fuel-efficient car, a sporty model or a larger vehicle for family.

Another important factor is to determine the capability to retain the value of the car. Can it retain its value such that you will recoup a fraction of the investment if you resell it in future? According to auto industry analysts, Toyota models like FJ Cruiser, Tacoma 4 Runner or Chevrolet Corvette retain their value better. Others like Mercedes Benz S-Class, Lincoln Towncar, Chrysler and Hyundai Accent depreciate quickly. Basically popular cars tend to retain their value longer. Vehicles that are 2 to 3-year-old offer the best value as the prices are lower and ownership expenses such as insurance and taxes are lower.

READ ALSO:  Why You Should Recycle Ink Cartridges

Buying a used car has an advantage in that it is a big variety of models available. Also, it being cheaper than a new one makes it possible to buy a luxury or sports car which would otherwise have been beyond reach. A point to note is that getting a car with much add-ons will mean higher prices despite it being a used car. Your budget should determine the amount of luxury features you want in your car.

Finally, a good resource to consult is this neat infographic by Kijiji.ca that gives the official value of used cars using mileage and other physical criteria.

About the author

Mark Ross Canaoay

Hello! My name is Mark and I'm the one responsible for this website. I'm just a person with enough knowledge about finance-related stuffs. You can know more about me by liking my Facebook Page, following me on Twitter or by adding me in one of your circles on Google+.

Leave a comment: