It is hard to keep ourselves entertained while the pandemic keeps us locked behind closed doors. Worse, the uncertainty amidst the surging cases makes our boredom buster options sporadic. We are getting bored and blue, at the very least. But fear not, vaccination is speeding up, and Canada is now easing its restrictions.
Indeed, traveling can be one of the things you have been pining for more than a year. Since commuting is still risky, you have to consider buying a car. Purchasing a used car can be a choice if you have a tight budget. But before you head to the shop, here are the things you have to know about it.
Used Cars in Canada
Used cars are the go-to option for those who want to avoid higher spending on new cars. Over the past decade, the market of used car retailers in Canada has expanded. Thanks to the upsurge in travel and leisure and immigration.
Now, the continued vaccination and pent-up demand for travel are driving its recovery. As restrictions ease up, businesses and the labor market are improving. The automotive industry is benefiting from it, but the impact was most visible in used cars. In a recent study, 27% of Canadians who used to buy new cars are now willing to buy used cars.
However, the enormous influx of customers in 2021 is causing microchip shortages. Right now, only 200,000 used cars are available throughout the country. Given this, the average price is soaring at $29,376, 14% higher than the pre-pandemic price. The price difference from new cars at $42,000 is still above $10,000, but narrower now.
Best Tech Features for Used Cars
Lower costs and insurance premiums are also their primary driving force. But before you join the bandwagon, you have to know how to enhance its features. Even older models can be as good as the new ones. Given its appreciating value, here are some best tech features you may apply.
Audio and Infotainment
You will want to access some apps with ease while driving. As such, Apple Carplay or Android Auto are the top choices for your car’s infotainment display. Music and navigation apps are best for a safer and more enjoyable travel experience. They ease boredom and reduce distractions. Now, even the e-cars are using these. Even if these began in 2016 models, adding these apps to older ones is possible.
Ventilated Seats
It is excellent to match safety and enjoyment with comfort. Ventilated seats are typical in newer models of different brands. Yet, you can use them even in older models. Now, these features are more accessible and applicable even to non-trim levels. They work by blowing cold air or sucking and dispersing warm air to cool down passengers.
Easier Parking
Depending on the model, acceleration and braking can be different for automatic control. Even for parking, automated controls are now available. Yet, systems of various brands have additional efficiency for perpendicular and parallel parking. But what is essential is that parking is now more straightforward, and you can apply this to used cars.
HID o LED Headlights
From halogen headlights, car manufacturers are shifting to HID and LED headlights. Luxury or non-luxury cars can have these headlights. Aside from better appearances, these can improve road illumination. Given this, having these headlights can increase safety at night.
It was in 2016 when non-luxury models began having these headlights. Now, it is widely available, even to non-luxury models. Since these have always been in the market since the 1990s, older models can use these. Hence, used cars, even the older ones, can enjoy these upgraded features.
Blind-Spot Monitor
Blind-Spot Monitors (BSM) has sensors for vehicles that are out of your sight. You can detect those out of your peripheral vision or still far a bit earlier. This feature debuted before 2010, so many older models can enjoy this, luxury or non-luxury.
It functions as a bright light on the outside mirror or inside the car or an alert sound. The primary purpose of this is to alert you when there is a vehicle in your blind spot. Given this, it increases safe driving at night, especially in darker areas.
Sure, these tech features can upgrade the appearance and performance of your car. But it means that you have to shell out some money. Keep in mind that there are other costs associated with maintaining your vehicle. Also, the price of used cars is increasing as stocks are decreasing.
As such, you have to determine first if a used car is worth a penny. To help you decide, here are some costs and benefits of owning a used car.
The Costs and Benefits of Owning A Used Car |
|
Costs |
Benefits |
InsuranceWhether a new or used car, insurance is a constant. In reality, car insurance is one of the most expensive costs in a used car. Its costs vary depending on the type of policy and coverage you choose and your details. This will get lower as you get older. They will also consider the car details. |
Lower PriceUsed cars are cheaper than newer cars. Currently, the average price of new vehicles in Canada is $42,000. Meanwhile, used cars are at $29,000 on average. Moreso, financing fees and sales taxes are lower. So if you are careful in choosing, you can save more for other expenses or your future dream car. |
MaintenanceLet us be realistic here. Used cars are more susceptible to higher maintenance and repair costs. The costs for a five-year-old vehicle are $100 higher than a three-year-old car. New tires and replacement of battery and windshield are the usual costs. Corrosion is a leading issue in repair shops. In reality, maintenance and repair are some of the hidden costs of used cars. |
Certified and InspectedCertified and inspected pre-owned cars can assure buyers of their quality. In general, these are already refurbished and approved by the manufacturer. Moreso, they often have benefits like extended warranties and special financing. |
FuelFuel or oil is a recurring cost of owning a car. As such, you have to check the car’s fuel economy before buying it. Consider how long you plan to own or drive a car. A fuel-efficient one is more expensive, but it will pay off in a year or two. |
Avoid Exaggerated FeesNew car owners often complain about shipping and dealer preparation fees. Used cars do not have these annoying fees, in general. But, other vehicles do incur advertising fees of $1,000. Otherwise, you only have to pay the documentation fee, which is only a hundred dollars. |
Dealership FeeOften, some dealership fees are high and ridiculous. Sadly, Canada allows used car dealers to operate. It includes the registration fee, title fee, and license fee. |
Lower PremiumsInsurance premiums are a must for a car, whether new or used. But, insurance rates are lower for used vehicles. The average car insurance in Canada is $1,320. You can calculate your own here. So even if your car is not brand new, it has financial protection. Brokerlink Insurance provides coverage on car damages. Some of which are natural disasters and accidents. |
Sales TaxesEven used cars are subject to sales taxes in Canada. For example, Ontario levies a 13% sales tax on vehicles. Yet, used cars have lower sales taxes due to lower prices. Also, used cars have tax exemptions. It includes the transfer to a close family member as a gift. |
Less DepreciationThe problem with new cars is that depreciation is higher. In the first year, car depreciation is 20% on average. Hence, a new car at $40,000 will depreciate to $32,000 after a year. In the succeeding years, depreciation gets lower. With used cars, a considerable bulk of depreciation has already been taken into account. |
Financing CostsIt applies to car loans. If you have enough money to pay the whole amount, then you are free. Financing costs are more expensive than the original price due to interest rates. |
Lower Customization CostsWith a used car, you are free to customize it based on your preference. You do not have to pay a high amount for exclusive dealership add-ons for a new car. |
Now that Canada is easing its restrictions, it is a good time for autumn travel. But, used cars are already limited as prices are soaring at almost $30,000. Hence, you have to weigh the mentioned costs and benefits before heading to the dealer. In the end, it is up to you whether to buy one or not.