New Vs Used: The Car-Buying Guide

New vs used, the eternal car-buying question. Here are just a few of the many things you need to consider when deciding whether to buy a new or a used vehicle.

New VS Used Car-Buying Guide

The New Advantage

Now is maybe the greatest time to be a new car buyer. First, you have access to the vehicles of more manufacturers than ever. In nearly every class of vehicles you can find two or three great options. And more classes are added every day (hello, CUV). And, unlike a used car buyer, a new buyer can pick the exact combination of features that they want. You don’t have to wait for months for the right model (with the right amount of kilometres to come along). On top of that, you have access to a wealth of information from manufacturers, professional reviewers, and normal drivers. But the new vs used debate is usually settled with money.

0% Financing

Specifically, it’s no longer difficult to secure 0% financing. Even Cadillac has gotten into the act. You can get a new Cadillac Escalade and pay no more than the sticker price (plus tax). That’s a first for the company. Of course, 0% financing isn’t a perfect deal for everyone. You loan term will end up being shorter than that of a higher interest rate which means that your payments will be larger. Then again, that means you will pay off your vehicle more quickly and will only pay for its value.

Two things to note. Firstly, used cars are starting to feature more attractive loan rates. You won’t find 0% financing, but some Certified Pre-Owned units can come pretty close – assuming you have a stellar credit rating. Secondly, you should remember just because you secure 0% financing doesn’t mean that you should purchase a more expensive vehicle than you would otherwise.

Depreciation

What’s the biggest cost of owning a new vehicle? Some might answer registration, insurance, or gasoline. But none of those come close to the cost of depreciation. Most people know that a new car loses 10% of its value when you drive it off the lot. But for some reason, the average person doesn’t think about depreciation like a regular expense. But, when considering an important decision like a vehicle purchase, you should consider it as one.

As a point of caution, depreciation rates are complicated. If the market is flooded with used vehicles, they’ll depreciate faster because demand is low. But, we can say that a new vehicle loses roughly 20-25% of its value in the first year of ownership. Fortunately, the rate of depreciation slows down after that. Still, after three years of ownership, a vehicle will have lost nearly half of its value. For some drivers, those first few years of ownership might be worth half of the vehicle’s purchase price. But, I think most people wouldn’t. That’s where shrewd used buyers come in.

If you purchase a vehicle that’s three years old, you’ve dodged the highest cost of ownership, and potentially paid 50% of the vehicle’s original MSRP. As the rate of depreciation slows, more of the money you invested in your vehicle stays there.

New Vs Used

With the diversity of drivers and their needs, we can’t say that buying a new or used car is “better.” New buyers probably want to enjoy the freshness of their vehicle and the latest features that come with it. Or, they want a specific combination of features and styling that they won’t find on the used market. Used buyers, for whom those things are not as important, get to take advantage of depreciation can save a ton of money. Both strategies can be good, as long as you understand advantages and disadvantages before you make the leap.

 

So, what kind of buyer are you? Hit the link to see our new and used inventory.

 

Capital GMC’s 6 Road Trip Tips

6 Road Trip Tips.

Safety First

The first priority of any successful road trip (according to my mother) is safety. For a start, you need to make sure that your vehicle is worthy of the road. Obviously, if there are any serious mechanical (engine, transmission, et c..) you need to get them checked out before taking off on (or in) your odyssey. Additionally, you should make sure your vehicle is up-to-date on its routine maintenance schedule. That includes:

  • Change the oil
  • Replace filters
  • Top up all fluids
  • Check hoses, belts, and brakes
  • Check tire treads and air pressure

In addition to taking care of your vehicle’s maintenance, you should acquaint yourself with its esoteric safety features. If you have blind spot monitoring, adaptive cruise control, lane-keeping assistance, or something similar, make sure you understand how to use it. Over a lengthy drive, or a dark one, it can be easy to lose alertness. When that happens, all of your vehicle’s cameras and sensors become much more vital than during a ten-minute commute. Even if you don’t have any next-generation safety features, becoming familiar with all aspects of your vehicle is an important exercise.

Entertainment

Road trip playlists are more important than road trips. That doesn’t make sense, but I don’t care. To make it through a 12-hour drive, you must be entertained. Fix up a cassette, mix a CD, renew your satellite radio subscription, or build a playlist. If you use a service like Apple Music, make sure your playlist is download, so you don’t incur data overages or gratuitous roaming fees. Maybe even download an audiobook because you’re never going to read War and Peace with your hands and eyes like a savage.

Roadside Assistance

These days, a fully charged smartphone is a pretty comprehensive safety net. You can get standard cell coverage, and even data coverage in relatively remote areas. But having a cell phone in the middle of nowhere still doesn’t make it easy to find the nearest mechanic or tow truck. To avoid the headache, and road trip interruption, you may want to become a member of a service like CAA, who can help you out quickly in the event of a mechanical failure or other problem. You can also invest in manufacturer roadside assistance or a service like OnStar support to make sure help is never too far away.

Road Trip Documents

It’s important to have your license and registration with you when you’re only a few minutes away from home. So, if you’re a few hours away, it’s even more important. If you get pulled over by the police or are involved in an accident, having essential documents with you can greatly expedite the process. Of course, you also should make sure that you have maps (yes paper ones!), tickets, and passports, or whatever else you need to make sure your vacation runs smoothly.

Get Some Sleep

Fatigue is one of the most dangerous, and underrated, driving impairments. The National Highway Traffic Safety Administration estimates that, each year, 100,000 police-reported crashes are a direct consequence of driver fatigue. Of course, as there is no objective measure for drowsiness, the numbers reported by the NHTSA may be low. Regardless, it’s obvious that driving while tired is dangerous. A Starbucks blonde roast with an espresso shot will only keep the lights on in your brain for so long. So, get a good sleep (if possible), take turns driving with your passengers, and pull over if you can’t keep your eyes open.

Save Some Gas Money

Two drivers who drive the same distance, at the same average speed, in the same vehicle will have different levels of fuel consumption if one driver accelerated and decelerated more often. Maintaining a consistent speed is much more fuel efficient than jamming on the brakes routinely and then accelerating quickly. Slow and steady might not win at Le Mans, but it wins in the wallet.

Speaking of that consistent speed, try to keep it around 95km/hr. Why? Well, it’s because the rate of fuel consumption does not increase linearly with speed. In other words, the rate of increase in fuel consumption between 45 and 55 km/hr is not the same as the increase between 85 and 95 km/hr. Fuel consumption increases exponentially with speed. Roughly, every 10 km/hr above 90 km/hr will decrease your fuel efficiency by 10%. I care about your well being, so we won’t go into the engineering, math, or physics behind it, but you should know that everything is air density’s fault. Damn air.

Have fun and stay safe on the road this summer. If you have any road trip tips of your own, share them in the comments below,.