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Should I Buy a Used Car in Hamilton?

Should I Buy a Used Car in Hamilton?

Buy new or buy used? This is a question many of us have to face at one point or another. Both have their pros and cons and both can have financial implications for the next few years if you use a Hamilton auto loan to pay for it.


We cover new cars a lot in our blog so today we are going to discuss the pros and cons of buying a used car. We’ll look at new cars tomorrow.


If you’re thinking about using a Hamilton auto loan to pay for a used car, bear these points in mind before you commit.


Pros of buying a used car


Here are some of the benefits of buying used:


Lower costs – Used cars are cheaper than new. You don’t pay the new car premium and you don’t suffer as much depreciation. You can either spend less on the same model you were looking at new or buy a better car for the same amount.


Lower auto loan amount – If you spend less, you can borrow less too. All other things being equal, having a smaller car loan means smaller monthly payments or a shorter loan term, whichever works best for you.


More vibrant used car market – The used car market is huge and still growing. There is a wider choice featuring more cars than ever before. That means a much wider pool of cars to choose from.


Slower depreciation – A new car can suffer up to 30% depreciation the minute you drive it away. Used cars still experience depreciation but at a much slower rate and without that initial loss.


Cons of buying a used car


Some downsides of buying used include:


Little or no warranty – Buy used from a dealership and you’ll usually get a 3 month warranty. Compare that to 3-7 years manufacturer’s warranty and there’s quite the difference.


Higher auto loan interest – Some Hamilton auto loans for used cars have higher interest than for new. Some of this may be down to incentives for new cars but it can also be because used car prices aren’t as predictable as new values.


Mileage and condition issues – Buy from Northway Ford and you’re assured of a good quality car. Buy privately or from smaller dealers and you may not have the same guarantee. You don’t know how the previous owner drove the car or how well the seller prepared it for sale.


No incentives – Manufacturer, dealer or government incentives can be a powerful motivator to buy new. Whether it’s 0% finance, rebates or government help, they are all available on new cars but not used ones.


If you work with Northway Ford or other Car Nation Canada dealerships, you can be assured that buying a used car will have many of the advantages and fewer disadvantages. Both should be borne in mind when making your buying decision though.


When you’re ready for a car loan, get in touch with the Hamilton car loan experts at Northway Ford for great deals on auto finance.


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Categories: Car Loan