Used Car Vs New Car Insurance Rates
When it comes time to get an insurance policy for your vehicle, there is a difference in how much you will have to pay between new and used cars. Two of the major factors in determining your monthly insurance payments are the age of the vehicle and its value. This means that, generally speaking, used cars will cost less to insure because they are both older and usually less expensive.
There is some wiggle room with this, however. A used Ferrari, for example, will be more expensive to insure than a new economy sedan. If you want to get the most value out of your vehicle, make sure you do your research into insurance costs ahead of time.
The Car Will No Longer Pass Emissions Tests
A clear sign that your car is outdated is when it will no longer pass environmental emissions tests. Newer vehicles have been built with various drive clean technologies that make the emissions coming from the tailpipe better for the environment and atmosphere. Older model cars do not have these technologies and many will not pass emissions tests that are required when motorists renew their license plates. Some drivers have to spend a lot of money having new technology added to their vehicle just to get it to pass an emissions test. And, depending on the age of the car, some vehicles will not even be allowed to take an emissions test. If this happens to you, then you may want to consider replacing your car rather than shelling out big bucks to get it to drive cleaner.
What Time Of The Week Is Best To Buy A Car
To answer this, well start by talking about the worst time of the week to buy a car, and that would be the weekend. With most people off of work on Saturday and Sunday, dealerships are usually at their busiest.
If youre just browsing, this doesnt make too much of a difference, but when youre ready to buy and need the attention of a salesperson, then youre better off to show up on a weekday. Typically, Monday will be the slowest because the vast majority of the labor force is heading back to work.
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Used Car Vs New Car Selection & Choice
One of the big problems for used cars is the lack of choice and selection. It can be a lot of work to search online or visit different used car dealers until you find a vehicle that fits what you want in terms of the make, model, trim, colour, age, kilometres, condition, price, and so on. In the end, you will be at the mercy of what used cars are on the market in your area and in your budget.
Meanwhile, for new vehicles you can visit one dealer that has the make and model you want and they will have tons of options to choose from on their lot. You can choose the colour, whether its automatic or manual, whether its gas or diesel, and exactly what features, options or accessories it has. You simply have a far greater choice with new cars, and its a lot easier to find them.
Keeping Your Ride Could Save A Bundle But You’ll Be Missing Out On Big Innovations In Safety And Infotainment
New-car envy. It can creep up anytime. It may snag you at a stoplight when a muscle car or luxury sedan sidles up. Or maybe when the gleaming SUV parked next to you makes the dents in your jalopy all the more obvious.
Get over it.
It’s all too easy to go for the quick fix and trot down to a dealership with checkbook in hand. That might cure your automotive longingat least until the payments start. But if you calculate your actual costs, buying a new car might be a lousy financial move.
The car you’re driving right now may be a keeperdings and all. Here’s why: Cars built in the past decade are more reliable than ever. Although the average age of all cars on the road is 11 years, many newer cars will provide trouble-free service for 200,000 miles or more with care.
If your car is only a few years old, hanging on to it will not only free you from a new cycle of monthly payments but also save a bundle in insurance, taxes, and other expensesprimarily depreciation.
It may be hard to get your head around the idea that shiny new sheet metal is a depreciating asset, but today’s new cars lose 46 percent of their value, on average, in the first three years.
Historically, a draw for a new car is improved fuel economy. But recent low gasoline prices blunt that impact, and even at higher fuel prices, you need to save a lot of money at the pump to make up for those depreciation and sales-tax hits.
Still can’t make up your mind? Check out our .
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Breakdowns And Repairs Occur Frequently
The occasional breakdown on an older vehicle should be expected, and paying for needed repairs every once in a while is reasonable. However, when a car starts breaking down with increasing frequency, it is likely time to start thinking about getting another vehicle. As a general rule, you dont want to experience more than two breakdowns a year. And by breakdown, we mean incidents that prevent the car from being driven and require major, costly repairs. Were not talking about having to replace the windshield wiper blades or the air filter. Were talking about replacing radiators, exhaust systems, and fixing major engine malfunctions. If you get to a point where your car is breaking down every two, three or four months, then youve got a serious problem on your hands.
When Is The Best Time To Buy A New Car In Ontario
Buying new cars is a big deal: The average Canadian spends about 21% of their monthly salary on housing and will spend 20% of said income again should they wish to drive new cars, not including car insurance.
So, when is the best time to buy a new car? Thats what everyone should know before laying down their hard-earned money.
If you have decided to buy a new or like-new used car, you are probably excited. Knowing that soon you will be driving your adorable children to soccer games in a new car that has amazing safety features can make you feel warm, confident, and professional all at the same time.
But do not allow your excitement to turn into an impulse buy. Walk into the car dealership of your choice at a time when you are most likely to get a great deal, instead.
Heres what you need to know to get the best deals available.
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End Of The Car’s Life Cycle
Sometimes the manufacturer announces that it will stop making a car altogether. There’s potential in this situation for even bigger savings. You should know that the car will depreciate steeply if it’s being discontinued, but if you plan on keeping it for a while, it won’t affect you. It’s also worth looking into why the automaker pulled the plug on a given vehicle. Is it a matter of changing tastes, or was the car truly bad in terms of performance or reliability? In recent years, for example, SUVs have surged in popularity and many domestic automakers have discontinued many of their sedans. Going further back, vehicles such as the Nissan Murano CrossCabriolet never really found an audience and the Pontiac Aztek had a face only Walter White could love.
How To Know If Youre Getting A Good Price
Now that weâve looked at the best times to buy a new car, letâs take a look at some resources that can help you to know if youâve found a great price.
TrueCar is a very helpful resource for researching cars. Youâll find plenty of details about the specs and features of each model, plus TrueCar will list the âmarket averageâ price of the car, which shows what other people are actually paying. Since most new cars arenât sold for the MSRP, this market value price can be extremely helpful to know when youâre negotiating.
You can look up the make and model at KBB.com and youâll see pricing info that lists the MSRP, fair market range, and fair purchase price. You can use this fair purchase price to know if youâre getting a good deal.
Through AAAâs website, you can choose to get price quotes from multiple car dealerships in your area for a particular make and model. Youâll enter your personal information and the details of the car that you want, and youâll be able to see the price offered from participating dealerships in your area. Depending on the model, the prices can be well below MSRP. Even if you donât buy the car from one of these dealerships, it provides you with a quote that you can take to another dealership to help with negotiating or price matching.
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How To Buy A Car Right Now
If you want to purchase a new or used vehicle, be prepared for sticker shock.
But take stock in some good news that the next car you buy will likely last a long time and help you drive safer than ever with all the technology advances and offerings.
Vehicle quality studies repeatedly show that todays new cars suffer fewer problems than those from just a few years before. That means that any buyers of higher-priced used cars will likely see the vehicle driving on the road even longer. The same goes for those buying new ones.
With most automakers now building such durable cars, they compete by adding more and more high-tech features. Features like adaptive cruise control and Apple CarPlay are now more common than ever on entry-level vehicles.
Read on to see our tips on buying a car below.
How to Sell a Car Now
Few of us are in the position of selling a car without needing to buy a replacement for it. But, if thats you, what are you waiting for?
Used car prices began falling from record highs. Moreover, you will get more for your car today than you will tomorrow.
The best way to get the most money for your used car is to sell it privately. But if you dont want the hassle, there is still an opportunity to sell to a dealership.
How To Make Buying A Car Faster
If you want to purchase a car quickly, there are a few things you can do to save time:
- Find financing before walking into the dealership.
- Consider buying online to avoid much of the time associated with window shopping.
People who find dealerships intimidating but believe they need to go to one to get a good deal can bring a friend or advocate with them for support.
As you shop for a car, remember that it can take a while. But its essential to find what you want and not settle simply because youre tired or overwhelmed.
If you find that youre willing to compromise, it may be worth it to walk away from the dealership or individual selling the vehicle and try again in a day or two.
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Used Car Vs New Car Depreciation
The main reason why used cars usually have lower prices than new cars is because of depreciation. Depreciation refers to how much value a vehicle loses over time. For example, say over the course of a year your cars value declines from $10,000 to $9,000 that means it depreciated in value by 10%.
A new car will generally lose most of its value in the first few years of being sold. So if you buy a brand new car, it gets hit harder by depreciation in the first three years than it will over the following three years, and so on. There are some exceptions to this rule, as some car brands and models depreciate at a much slower rate over time than others.
If you want to keep an eye on the resale value of your car down the line, you should keep depreciation in mind.
Youre Spending More Time At The Gas Pump
The older the car, the less fuel efficient it will be. Each year, a new crop of cars come out and each one is a little more fuel efficient than the previous years models. If youre driving a car you bought in the early or mid-1990s, chances are youre spending a lot more time at the gas station than your neighbor whos driving a 2015 Toyota Prius gas-electric hybrid. And while you might not be making payments on your car any longer, all those trips to the gas pumps add up in terms of costs to operate the vehicle. It depends on how many miles you drive a week. But if you find yourself at a gas station more than two times each week, then youre spending too much money on gas and should consider upgrading to a vehicle built in this decade.
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Do Buy A Good Car Thatll Last You At Least 10 Years
Many people especially you younger folks reading this are going to want to prioritize the way a car looks over anything else. Instead, you should be focusing on getting a good car that you will be able to drive for a while .
Cars are long-term investments. This isnt like a pair of shoes where youre just going to wear them for a year or two before getting a new pair. And like a pair of shoes, a car only gets worse and less valuable over time. Heres a complicated graph explaining this.
So look for a good reliable car and definitely dont do what this reader tried doing.
Signs It’s Time To Buy A New Car
Some people will hold onto their car forever. And those people should be applauded. Studies show that the longer people drive their car without payments, the further ahead they are financially. Everyone knows someone who is driving around in an extremely old car that has more than 300,000 miles on it and is covered in rust. However, eventually even the sturdiest vehicles wear out and it becomes impractical to keep them running. At some point, common sense needs to kick in and motorists need to accept that it is time for them to purchase another carwhether a brand new one or a slightly used vehicle. Here are eight signs that is it likely time to let your old car go and buy another one.
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Your Friends Always Offer To Drive
Oh no its fine, we can take my car Confused why your friends dont want to ride with you? Maybe its because your car smells like a opossum, and they dont have the heart to tell you. Or, your car is so rickety, that they dont feel safe riding with you. Either way, thats not what you want in a car.
Best Times To Buy A Car
So youve done your research, secured a down payment or a car loan, and are counting down the days until youre breathing in that new car smell. It may seem like the perfect time to buy, but your calendar could be telling you otherwise. Though motor vehicle manufacturers constantly advertise their latest models all year long, its important to note that the best deals only happen on or around specific dates.
Just as there are better days to buy consumer electronics and fitness products, there are optimal times to buy a vehicle. What it really boils down to is how badly dealerships want to move their existing stock. Cars that sit on a lot represent a considerable amount of revenue loss for a dealership and can cause problems once the new models start coming in. Couple that with quarterly sales quotas and you can start mapping out the prime times to buy a new vehicle.
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Can I Buy A Used Car Quickly
Some people will purchase a used car from an individual who has it posted online or listed for sale in a driveway or parking lot.
If youve found a used car for sale by an individual, you will have to figure out a time you can look at the vehicle that works for you both. After test-driving the car, take time to research how much the car is worth. Some people drive the vehicle to a mechanic and have it checked out.
Buying a used car from another person can take several days, and the process usually takes longer than simply purchasing a car from a dealership. But purchasing a car from an individual can save money and help you avoid the hassle of negotiating at a dealership.
At The End Of The Month
Our in-house research team and on-site financial experts work together to create content thats accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates processes and standards in our editorial policy.
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