Advantages of Buying Used Cars

Some people may give pre-owned vehicles a bad wrap, but there are times when it makes a lot of sense to go this route. Just about everyone needs a reliable vehicle to get around from place to place, and a used vehicle can suit you well. If you’re still not convinced this is your best choice when you need a car, consider the pros to owning used cars.

Good Value

The first thing you should know is that a used vehicle actually holds its value well. Your pre-owned model won’t depreciate as quickly as you might think. In fact, if you pay off your car, you can sell it and perhaps even recoup your investment, depending on how well you took care of it.

Lower Payments

The time to purchase a vehicle doesn’t always come at the most convenient time. Sometimes you car may break down, and  you’ll need something different when you have little cash to spare. If you’re worried about your budget, used cars are a good choice. You can find dependable vehicles at a monthly cost you can afford.

Save in Other Ways

Your monthly payment isn’t the only cost-saving benefit. When you get a pre-owned car, you should also pay less in taxes. Plus, most insurance companies will charge a lower premium for used vehicles. Also, if you need to renew registrations, those costs diminish each year as the car ages.

Performs Well

Not every used vehicle is a lemon. In fact, if you shop at a reputable dealership, the team there will thoroughly inspect the cars to make sure they’re in good working order. A certified mechanic will check every part, system and component so you can have peace of mind you’ll be safe as you drive.

Please visit us at Queensway Auto World and choose a quality pre-owned car. There’s a lot you can enjoy about this option.

Why Canada’s used-car world is becoming a buyer’s market

Ian Bickis, The Canadian Press 

TORONTO — The balance of power in the used car market is shifting towards shoppers as improved data and online offerings create more opportunities to push for the best price.

A fast-evolving online marketplace is providing more intelligence on the fair value of cars, said Cliff Banks, a Detroit-based auto retail expert.

“I don’t know that it can be any more transparent…they all provide intelligence on the pricing and the deal of the vehicle, whether it’s a good deal, a fair deal.”

Kijiji Canada recently announced it will add a standalone auto sales site that will roll out later this year to keep up with shifting expectations. The site will add reviews of dealers as well as market pricing information from Carproof.

“The key feature for us, and one of the biggest, the biggest win for us is what’s called price transparency or price analysis,” said Matt McKenzie, general manager at Kijiji Canada.

The online classified company, owned by eBay, already boasts of being the largest player in the Canadian market with about 500,000 vehicle listings. Autotrader, owned by Etobicoke-based Trader Corp., lists about 444,000 vehicles on its site while there are many other offerings on the market as well.

Listing companies are boosting their online presence as the used vehicle market is set for significant growth, said Dennis DesRosiers, president of DesRosiers Automotive Consultants.

“There’s tremendous opportunity, and that brings in all the different retail players and their approach of, how do I get a piece of that?”

While new vehicle sales are expected to be largely flat at about two million this year, the used vehicle market is set to add half a million more in sales in the next three to five years, on top of the three million that changed hands last year, said DesRosiers.

The rise in the used vehicle market comes as improved quality in the past decade means cars and trucks are lasting much longer, allowing for a potential lifespan of four to six owners from the two or three expected not long ago.

“It takes 23 years to remove the vehicles from the road now, a decade ago it only took about 12, so it’s essentially doubled,” said DesRosiers.

Used vehicles also offer margins that are two to three times higher than for new cars, adding to their appeal, he said.

The quality and information improvements have significantly changed the overall used retail market, said DesRosiers.

“It’s not that far long ago, call it 15 years ago or maybe 10 years ago, where the used car market was largely a culture of deceit…even if the online capacity was there, there was just so much riffraff in the used car market that it was very dangerous. A lot of that has changed.”

The improved access to data means used-car retailers have to be more transparent and competitive about their pricing, said Jamie Tekela, director of pre-owned operations at Pfaff Automotive Partners.

“You need to really justify what you’re asking, why you’re asking it, and you can’t go asking $500 more for the same Honda Civic with the same mileage. It just it doesn’t work any more.”

“It’s night and day, to be perfectly honest. It’s gotten a lot more customer friendly,” he said.

The improved information on crash reports, comparable sales, and other metrics hasn’t done away with potential negotiations but does give more justification, said Jamie.

“There’s always going to be negotiations when trying to buy and sell vehicles, but with so much information available to each and every one of us, it’s a lot easier to explain our rhyme and reason why we’re asking what for a car.”

Buying a Used Vehicle in Ontario? Get a Pre-Purchase Vehicle Inspection BEFORE You Buy!

Buying a car can be a huge financial commitment and no one wants to end up with buyer’s remorse due to unexpected repairs soon after purchase. That is why its vital consumers exercise their ‘due diligence’ before purchasing any used vehicle – and in many cases, that means getting a pre-purchase mechanical inspection. 

Pre-purchase inspections are one of the most effective ways to ensure consumers don’t overpay for a vehicle or get stuck with a vehicle that requires unexpected repairs. Mechanics can often spot a vehicle that’s been involved in a collision or has been poorly maintained.

But not all pre-purchase inspections end with dramatic findings; in many cases they simply uncover needed repairs due to normal wear and tear. Often the seller doesn’t even know about the problem. This gives the potential buyer and seller an opportunity to address any issues – sometimes resulting in a price change, the seller conducting the repairs as part of the purchase agreement or the buyer walking away.

Should I Have a Mechanic Inspect a Car Before Buying?

Anyone considering buying a vehicle from a private seller should ‘insist’ on an inspection before purchase. Consumers should keep the original copy of the mechanical inspection for their records and to negotiate a price change if the inspection identifies mechanical issues. If the consumer does not get the response they want, OMVIC recommends walking away.

While consumers who purchase from an OMVIC-Registered Dealer have many protections not available to those buying privately (e.g. dealers must disclose needed repairs to major components), a mechanical inspection on a used vehicle is also important, particularly if the vehicle has no warranty.

How Much Will an Inspection Cost? Where Can I Find a Good Mechanic?

Depending on the vehicle, pre-purchase inspections usually take about an hour, are available from many general repair facilities or specialized inspection companies and cost approximately $100-$150. Don’t know where to find a ‘good’ mechanic? Member-based organizations such as the Automobile Protection Association (APA) and Car Help Canada offer vehicle-related services including lists of pre-screened reputable mechanics/repair shops/appraisers. Like OMVIC, these consumer protection groups encourage consumers to conduct a pre-purchase inspection of a vehicle they are considering for purchase.

To contact one of these consumer protection groups, visit their websites below:

Automobile Protection Association: www.apa.ca

Car Help Canada: www.carhelpcanada.ca

Leverage the OMVIC Academy—Get Educated

The OMVIC Academy videos and associated guidebook will help turn apprehensive students into informed consumers. Inspired by sitcoms from the 80s and 90s, each video follows students Ling, Timmy, Justin and Ellen on their journey to becoming “confident car buyers” while guided by the sagacious Professor OMVIC. The videos and Car-Buying Guide are targeted to first-time buyers and new Canadians. OMVIC also encourages high school teachers and driving school instructors to utilize the Academy resources.

About OMVIC

An educated and informed consumer is a protected consumer.

Visit OMVIC.ca to learn more about your car-buying rights and when they apply, as well as additional tips for buying a car in Ontario.

Key Steps to Take When Purchasing a Used Car to Make Sure You Are Comfortable

If you are on the hunt for quality used cars in your area, there are some key steps to take to be sure the entire process goes well. We recommend taking these steps to ensure you get exactly what you want and spend the amount you want to in the end. The most important thing is guaranteeing the vehicle you buy is top quality. We want to make sure that happens for you, so here are the steps to remember in the process.

Consider All of the Details When It Comes to Finances

Our concern is not how much you spend, but that you spend a comfortable amount and receive the quality you deserve. This is why we recommend you figuring out your detailed budget beforehand. Calculate in everything, including the total payment of the car and any insurance that you need. Also, be sure to not make a car payment that is over 20 percent of your take-home income. This way, you will find yourself in a safe and secure ride and not in a financial hole.

Have an Inspection Done on the Car on Your Own

While all of our vehicles are thoroughly inspected and are in top condition for you before you even check them out, we recommend you taking it for an inspection on your own with someone you have history with and trust. Our goal is for you to feel like you can one hundred percent trust our vehicles and us. This is why you should take it to a mechanic you know and confirm the positive inspection results we will give you.

We are set on offering you used cars that are of the best quality around. All of our cars have been tested, driven, checked, inspected and have come out with clean results. We want you to be happy with your buy, so we recommend you take the steps above until you feel confident with the car you are considering.

The Advantages of Used Cars

In today’s economy, purchasing a used car makes perfect economic sense. In fact, since so many people are holding onto their cars for longer periods of time that used cars have actually increased in value. This is due, in part, to the fact that fewer used vehicles are coming on the market. Thanks to better engineering, it is possible for almost any modern car to last for nearly 300,000 kilometers , if properly maintained. The average age of the car on the road today is slightly more than 11 years.

The most obvious advantage when purchasing a used car is the smaller down payment required. In many cases, if the buyer has budgeted wisely, he is able to buy his car outright for cash. Even if the individual is not able to eliminate his monthly payment altogether, he will have a payment that is a great deal lower by purchasing used. With job insecurity at an all-time high, lowering monthly expenses is a prudent measure that provides a safety net. In addition to the smaller down payment, you save on taxes and fees that are associated with purchasing new.

The cost of insuring a used vehicle is usually considerably less, especially if you decide to eliminate comprehensive and collision coverage. Another advantage to buying a used car is that most of that kinks or hiccups will have been worked out. The previous owner will likely have taking care of any problems that were on the scene at the factory. This makes your car more reliable. Even though you are likely to love your used car, you are less likely to be stressed about keeping it looking brand-new and scratch free. It is also likely to be less of a target for theft. When it comes time to sell or trade in your used vehicle, you may find that it hasn’t lost much in value. That is because the steepest depreciation usually comes within the first six months of a car’s life. So you are likely to find that your used car holds its value very well, if you have chosen well.

If you are looking at used cars, please pay us a visit. We have many quality used vehicles in stock and will be happy to help you select a car that fits your budget and that you will love.