Best to Buy New or Pre-owned? 

It’s no secret that the car-buying market is challenging right now. The market has seen turbulence brought on because of the pandemic, with microchip and other parts shortages and supply chain woes. Because of this, vehicles themselves are in short supply, keeping prices for new vehicles at MSRP and increasing the value of pre-owned vehicles. We’re also seeing interest rates affect purchasing power for shoppers, so there’s a lot to consider when deciding what vehicle to buy. 

So, what’s the best deal if you’re looking to make a purchase right now? New or pre-owned? 

Buying new

If you’ve got your eye on a new vehicle it’s still a good time to purchase. The newest features and technology upgrades are fantastic and even at MSRP there are many options that offer good value. You just have to go into your search knowing that you’ll likely be paying MSRP or close to MSRP.  

Because of the vehicle shortage, there is high demand which doesn’t leave a lot of room for negotiation. If you’ve found the exact vehicle you want it’s important to make your purchase decision right away. Since there is low supply, vehicles are being sold quickly. Be aware that there could be several other buyers also looking at the same car, so if you find what you want it’s best to snag it as soon as possible. You might also have to be patient if you miss an opportunity and work closely with your sales representative to get the car you want.  

Additionally, if you’re looking at the newest model or one that’s a few years older, you might notice that they are fairly close in price. That’s because the demand for vehicles is higher than the supply, so those newer used vehicles can fetch a higher price. At that point, if the price difference isn’t too big and you can afford it, you might as well go for the newest option! 

Buying pre-owned 

Pre-owned cars are seeing a bump in value as depreciation is slowed due to increased demand. This means that you will pay more for a used vehicle than you would have a few years ago. There are still some good deals to be found. If you’re looking for a pre-owned vehicle that’s more than a few years old, then you’ll see some appealing pricing that’s significantly lower than a new vehicle purchase.  

Keep in mind that demand is still high. If you need a vehicle and find something that is close to what you want, you should be open to compromising on your wish list, as it’s probable that the vehicle will find another buyer soon. Make sure the vehicle is certified pre-owned to have the peace of mind that the vehicle is in good shape. Certified pre-owned vehicles often have a warranty through the dealership which makes them a good purchase.  

A Car-Buying State of Mind 

The best advice during this time is to be patient and act quickly. Whether new or pre-owned, you might need to wait a bit to find the right vehicle to fit your needs, and then once you find it you need to make your purchase decision quickly.  

Want to purchase a new or pre-owned vehicle? 

Connect with a sales associate at any of our Ontario Auto Center dealerships to learn more about available options.