April 17, 2002

New or used? Common-sense car-buying tips
by Jim Kerr

Cold weather takes a toll on vehicles. Maybe yours is on its last legs and with the approach of summer, you are considering buying another vehicle. Caution! Don't be in a hurry to get that next one. A vehicle is a major purchase and it is well worth your time to make a wise and educated choice.

The first thing you should do is determine what you need. A sports car may be exciting but not very useful if you have to carry large loads often. A truck may seem useful, but extended cab versions may not carry adults well in the back seat for long distances. Once you have decided what type of vehicle you need, then you need to determine what you can afford.

Buying a used vehicle is easier on the pocket book initially, but be sure you are not buying someone else's problems. A cheap purchase price can quickly be spoiled if the vehicle needs any major mechanical work. The repairs can be thousands of dollars. Don't buy a used vehicle unless you have had a chance to have it mechanically inspected before the sale. Any reputable seller, whether it be from a sales lot or private individual, will allow you to have it inspected by an independent repair shop. Think of the cost of the inspection as an insurance policy against buying a vehicle with major faults. Use information discovered in the inspection to barter on price if you still want the vehicle.

Two year old vehicles are perhaps the best buy. Depreciation takes a large bite out of the value for the first two years, but then slows down, so a two year old vehicle will keep its value better. There are exceptions to this rule, as anyone who has gone shopping for a used extended cab full size truck or SUV can tell you. These vehicles are in demand, so a low mileage used unit is commanding almost the same price it sold for when new! Warranty is often available for a vehicle only a couple years old, and usually the vehicle has low kilometres so it can provide many more years of service.

Buying a new vehicle has some advantages. Financing for new vehicles is provided by some manufacturers at rates much lower than the banks. This could save hundreds of dollars over the term of a loan!

Other new vehicle advantages include a longer warranty period, little maintenance needed on the vehicle, and the latest improvements that the manufacturers have built into the vehicle. Improvements can include driver and passenger air bags, antilock brakes, and side door guard beams to protect passengers in a sideways collision. Of course, one of the pleasures of owning a new car is the look of the new body style!

If you are looking at purchasing a new vehicle, buying a one year old "new" vehicle can save you a bundle. Most manufacturers will discount last years model to sell them quickly before the latest model arrives at the dealership. You have most of the advantages of a new vehicle, but at less cost. Remember though, this vehicle is already one year old so its value will depreciate very quickly when the next model arrives.

No matter what you purchase, used or new, drive as many vehicles as you can before making a decision. I tell many friends to drive at least five different vehicles before buying; then you are able to compare vehicles. If you are like most drivers, you seldom drive a different vehicle. Driving another one will be so different, you feel as if it is better! Driving many vehicles gives you an opportunity to compare them against each other, not just against your old vehicle.

Even with new vehicles, there are differences between two seemingly identical ones. I have driven many new vehicles, and if I had the opportunity to drive several of the same model, I would often find most were good, one was excellent, and one wasn't quite up to par. Quality has generally improved over the last few years, but drive more than one to find a good or excellent one.

Educated buying means spending the time to learn all about the vehicle before you buying. If you are a parent, don't be shy to try your child seat in the new car. It fits much easier in some vehicles than others! Finally, never be pressured into making a decision. If you miss one deal because of your careful shopping, remember there are lots of vehicles out there and another good deal will come along again.

Jim Kerr is a master automotive mechanic and teaches automotive technology. He has been writing automotive articles for fifteen years for newspapers and magazines in Canada and the United States, and is a member of the Automotive Journalist's Association of Canada (AJAC).

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