Should I Buy a New Car in Canada? Pros & Cons (2024)

If you're in the market for your next/first vehicle, you might be asking yourself "should I buy a new car?" as opposed to a less expensive used option.

As they are a significant investment that can involve up to 96 months of auto loan payments, we want you to make the right decision! Let's get into it.

Pros of Buying a New Car

There are some significant plus points to buying new. They include:

Lower Interest Rates

Whether you’re using dealer or manufacturer finance or an auto loan, you will usually find lower rates when buying new.

Some of that will be down to incentives while some will be down to more predictable car values.

Vehicle Warranty

You get a limited warranty with a used car but buy new and you get much more.

Some cars come with 3 years or mileage warranties or even longer.

Some of that warranty will include everything in the car while the longer part of the warranty will cover engine and drivetrain.

New Technology

If you like the idea of heads-up display, cameras that see around corners, self parking, Apple Car Play or Android Auto, buying a new car might be a good idea.

Safety Features

The latest safety features will also be available in new cars. While they will be available once that new car has been used, you could have quite a wait.

Incentives

Some manufacturers offer to pay the deposit while others offer a contribution towards it. Click here to see our monthly incentives.

Governments offer incentives for EVs and some dealerships have their own incentive programs. All of which are only available on new cars.

Cons of Buying a New Car

There are some downsides that might make you think you shouldn't buy a new car.

Depreciation

A new car can depreciate between 10-30% the moment you drive it home.

Once your auto loan is paid off, the car could be worth 40-50% of what you paid for it.

This will of course, differ by make and model but all cars depreciate quickly when new.

Higher Initial Cost

There is no doubt that you pay a premium to buy new. Especially when you can buy a similar car a couple of years old for much less.

If you're ready for a car loan, we'd love to help with that! simply fill in the form below to get started.