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If
you've never considered buying a used car, maybe it's time
to think again. "Right now, Canada is one of the best
countries in which to buy a used vehicle," says Imants
Grotans, publisher of the Canadian Red Book car guide. And
this may be the best time ever to purchase a used car. Here's
why:
Choice.
People once said that buying a used car was buying someone
else's problem, but the huge popularity of leasing has meant
that tens of thousands of high-quality used vehicles are
coming off lease and being put up for sale every year.
In many cases, these vehicles have had only one driver.
Most have been well maintained, since the cars have been
under manufacturer's warranty for their entire lives.
Still suspicious? Then do your homework. Since many leased
vehicles are maintained and repaired at the dealership that
leased them, you can often see all of the vehicle's service
records before buying. It's even possible to transfer the
balance of the manufacturer's warranty to you, the buyer.
Savings.
You lose a substantial part of your investment in a new
car the moment you drive it off the lot. On average, domestic
models lose about 50 percent of their resale value during
the first three years of their life, while imports lose
nearly 50 percent over the first four years.
This rapid loss has everything to do with fashion and little
to do with the vehicle's true worth. Thanks to improved
engineering and tighter quality control, cars last longer
than ever and their average life span is now more than ten
years. So buying a three- or-four-year-old vehicle means
you are getting 70 percent or more of its useful life for
around 50 percent of its original cost.
Fewer
Hidden Costs. New cars may appear reasonably priced if you
look at the bare-bones sticker price, but tack on freight
charges, predelivery inspection and sales taxes, and you'll
feel as if you've been sideswiped by a tank. "That
new model advertised at $19,000 is really going to cost
$24,000 to drive it off the lot," says Michael Turk,
consumer advocate and lawyer for the Automobile Protection
Association (APA). "That's what makes used cars such
a great value." There are no nasty surprises when it
comes time to pay the bill.
Lower
Insurance Rates. A used car can also save you hundreds of
dollars in insurance costs. In downtown Toronto, for example,
a 40-year-old man will pay $162 a month to insure a 2002
two-door Pontiac Sunfire GT. He will pay only $133 a month
to insure the 1997 model of the same car. That's a yearly
savings of $355.
All told, the savings from driving used cars rather than
new ones can easily surpass $1,000 a year.
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