For most buyers, used cars are the way to go. Here’s why.
Used car sales have skyrocketed over the last few years. The combination of an unstable economy, higher new car prices, and improved technology in older models have made the choice an easy one. For most buyers, it just makes more sense to buy from a used car dealership. We’re willing to bet that it makes more sense for you, too.
That’s why we’ve put together the Ultimate Guide to Used Car Dealerships. In the next five minutes we’re going to lay out:
- The Pros/Cons of buying a used vehicle
- Why getting financing is easier with a used car
- How certified used cars are just about as good as new cars
- That used cars come with warranties now, too
- Why trading-in at a dealership is better than selling privately
- 5 popular myths about used cars and why they’re stupid
So buckle up. We’re about to make your next new vs used car-buying decision an easy one.
The Pros
It costs less!
New cars lose about 50% of their value in their first three years. Why buy a 2020 model for $40,000 when you can get a 2017 model for just $20,000?
You get more for your money.
If you buy a vehicle that’s two or three years old, you can afford to get the higher trim model with all the extra options and technology upgrades, and still save a lot of money. If you buy a new model, you’re likely to buy a lower-trim model because high-trim new vehicles cost a lot more.
You’ll save money on insurance.
Insurance premiums are much lower on used vehicles because it costs less for your insurance company to replace the vehicle in the case of an accident.
Certified Pre-Owned Vehicles.
Used cars bought through a manufacturer's certified pre-owned program are nearly good-as-new condition and require special inspections that make the manufacturer (Honda, Ford, etc.) responsible for certain repairs instead of you. You’re almost as well-protected as you are with a new-car warranty.
The Cons
Repairs can cost more.
If you happen to buy from used car dealerships that aren’t under the Go Auto banner you likely won’t get a used car warranty. That means you’re potentially on the hook for expensive repairs if something goes wrong.
Buying privately leaves you unprotected.
If you choose to forgo used car dealerships and buy a used vehicle from a private seller, you won’t get the benefits of specials warranties or service programs.
Higher interest rate.
You’re likely to receive a higher interest rate with a used vehicle. Used vehicles interest rates typically start at 4.99%, where new cars can start at 0%. That being said, if you don’t have perfect credit, this con doesn’t really apply to you, since 0% is out of the question anyway.
Getting You Approved for Financing Without the Banks
If you’ve had a difficult time getting approved for auto financing with a used vehicle in the past—which typically happens through bigger banks like TD, Scotia Bank, Royal Bank, Bank of Montreal, etc.—Go Auto can get you approved for used vehicle financing even if you’ve been denied by the banks.
Because we don’t rely on the banks—who are notoriously conservative when lending money—we are able to work with customers with lower credit scores:
- Low Credit
- No Credit
- Recent Bankruptcies
- New Canadians
- Self-Employed
- Difficult-to-Prove Income
- Divorcés
No matter your history, we can get you approved. If you’re pessimistic about your credit situation, we can get you approved.
We have more than 40 used car dealerships across Canada, and we have more than $100 million dollars set aside to finance Canadian used car drivers right now. No other dealer group in the country can promise anything close to that.
Everything You Need to Know About Certified Pre-Owned Vehicles
Buying a Certified Pre-Owned (CPO) vehicle is the car shoppers equivalent to having your cake and eating it too. Instead of having to decide between buying new or used, you can choose a CPO vehicle and get the perfect combination of both.
What is a Certified Pre-Owned Vehicle?
CPO vehicles are recent models that have been inspected, refurbished, and certified by a manufacturer (Honda, Nissan, Hyundai, etc.). They usually include an extended warranty, special financing, and additional benefits. Take, for instance, Ford’s CPO program. In order to qualify, vehicles need to pass a 172-point inspection, be five years old or younger, and must have less than 120,000 kilometers on their odometer.
What a CPO guarantees owners
Ford’s program guarantees a 12-month/20,000 kilometers Comprehensive Limited Warranty coverage, a Vehicle History Report, 24-hour roadside assistance, a full tank of fuel, fresh oil and filter, and new wiper blades at delivery.
Different brands offer different benefits. For instance, Volkswagen offers 6-months of roadside assistance, guaranteed coverage for the remainder of the manufacturer’s warranty, 3-months of Sirius Satellite Radio, and a Vehicle History Report.
Luckily, Go Auto works with 19 different new-car brands. So if you’re looking for specific protection with a certified used car, feel free to contact our VIP Personal Shoppers and they’ll get any information you need. Either chat with us online at GoAuto.ca, or call 780-777-7777.
Why Buying a CPO Vehicle is Better than Buying Privately
The number one risk associated with buying a used vehicle privately is mechanical uncertainty; that is, that the vehicle you’re buying has engine issues that the seller either isn’t aware of or isn’t disclosing to you. Either way, it can cause you major headaches down the road. When you buy CPO vehicles from used car dealerships, you can buy with confidence knowing the vehicle has been thoroughly inspected and is free of any major mechanical issues.
Another great benefit is getting a Vehicle History Report report with your vehicle. It can tell you whether or not a vehicle’s been in an accident. Plus, getting a Vehicle History Report and inspection on your own will cost you money - in some cases, over $1000.
Perhaps the biggest advantage of buying a CPO vehicle is the included warranty. Generally speaking, a warranty gives owners peace of mind knowing that if something goes wrong, the manufacturer will cover the cost of repairs.
Finally, a lot of CPO vehicles were leased vehicles in their earlier years. That means they generally have very low kilometers on the engines. Plus, a lot of them have been reconditioned, which means you get the new car feel, with only a few kilometers
Trading In vs Selling Privately
The number one question our customers ask us is always whether it’s better to sell their car to the same dealership they're buying their new one from (i.e. trading in) or sell their car to someone else on their own time (through Kijiji, Facebook, word of mouth, etc.).
We’ll be honest: there is no definitive answer to this. It's very situational, and it ultimately depends on what you're being offered by the dealership/private customer.
However, there are a number of inherent advantages with selling to a used car dealership.
The Benefits of Trading in Your Vehicle
Trading in your vehicle is definitely the easier/less stressful of the two options, because used car dealerships will basically do all the work for you. All you have to do is bring your vehicle in, get it appraised, and then put the money they’re giving you towards the new (or used) vehicle you want to buy.
You don’t have to worry about setting a fair price, haggling with everyone who approaches you about your vehicle, paying to advertise your vehicle, waiting for potential buyers to come up with the money, and more. Selling privately can be an extremely aggravating experience. Used car dealerships help you avoid all that.
When weighing trading in vs selling privately, an important factor you have to consider is pain. With a dealership trade-in, all these headaches are avoided. Imagine finding a buyer and then having to wait for them to sort through financing troubles with a bank? Or maybe they promise to buy and then don't show up. Or they want to give you half now and half later?
How Go Auto Can Help
With 19 brands for sale in one place—GoAuto.ca—we have an incredible amount of buying power when compared to smaller dealerships. Because of that, we are able to offer you more money for your vehicle because we can move our inventory between dealerships.
Here's how it works:
- You own (for example) a Ford Escape
- You want to get rid of it and buy a Kia Sorento
- If you were to take it into any old Kia dealership, they wouldn't give you a great trade-in offer because they don't normally sell Fords. Customers aren't coming to their Kia dealership to buy used Fords.
- However, if you buy a Kia Sorento at a Go Auto Kia dealership, we can pay you as much as a Ford dealership would for your trade-in. This is because we also own several Ford dealerships. We can just transfer that vehicle to one of our Ford stores after the sale is completed. We know we can maximize its value.
Trading in vs selling privately often isn't much of a decision with normal dealerships. Most stores don't give you what you want, so the decision is a simple one. But at Go Auto, we sell more vehicles than any other dealer group in Western Canada. We know we can sell your vehicle fast. So we’ll pay you more for it.
Our appraisals are absolutely free and take barely any time at all. We will accurately assess your vehicle and provide you with competitive offer based on the make/model, condition, and history of the unit within the hour (unless we happen to be swamped that day, so please call ahead).
5 Myths About Buying a Used Vehicle
MYTH #1: Used Cars Aren’t Reliable
These days, car companies build their vehicles to last. With innovative engine technologies and striking advances in machinery and automotive design, vehicles can last well past the 250,000-kilometer mark.
If there's a vehicle you've been eyeballing and want to know about the general reliability of the model, why not try J.D. Power and Associates? They're a trusted source of information on vehicle reliability. They use online surveys, customer satisfaction reports, and buyer behaviors to give vehicles an overall reliability score. All the information they collect is available for free online. Just search the make, model and year of the car you’re interested in buying.
MYTH #2: There’s No Way of Knowing if a Used Car is a Lemon or Not
There are actually several ways to protect yourself from buying a lemon (a vehicle that's been sold with manufacturing defects), most of which we’ve already talked about.
Certified Pre-Owned (CPO) Vehicles – These vehicles are required to meet certain criteria before they're qualified as being Certified Pre-Owned. The dealership inspects them, refurbishes them, and covers them with an after-manufacturer warranty. Go Auto currently has several hundred of CPO Vehicles in stock, all the time.
Vehicle History Report – By searching your vehicle’s VIN number, you can see if it’s ever been in an accident before and how serious the collision was.
Extended Warranties – These can cover your car for additional kilometers outside the original manufacturer's warranty.
MYTH #3: Used Cars Are Gas Guzzlers
With current technology, the overall age of a vehicle plays little part in how much fuel the vehicle burns. Unless you’re buying a 10-year-old vehicle, this shouldn’t be much of a concern.
The amount of fuel your vehicle consumes depends on the size of your engine and how well it’s been maintained. For instance, if you buy a vehicle with a 2.4-L engine, you can expect relatively good fuel efficiency when compared with a bigger V6 engine. Same goes for a well-maintained engine opposed to a neglected one.
MYTH #4: Used Cars Don’t Have Any Resale Value
When properly maintained, vehicles can hold their value and help keep the resale value of your vehicle relatively high. If you decide to sell in a few years and have properly maintained your vehicle over the course of ownership, you might be able to sell or trade it in for a good chunk of money.
When properly maintained, your vehicle’s overall value will stay relatively consistent because of factors like, safety, reliability, fuel economy, appearance, size/space, etc.
Also, consider the fact that if you buy a used vehicle, you're going to pay less for it in the first place. So ,in order to "save face" or recoup some of your costs, you're not going to need as big of a return.
MYTH #5: There is No Way to Know if a Used Car’s Been Taken Care Of Again, this is simply not true.
Any certified mechanic can tell if a car has been treated well over the course of its life. When an original owner ignores signs of trouble, skips oil changes or forgets to bring the car in for regular maintenance appointments, a mechanic can look at the vehicle and know within minutes.
Whenever Go Auto buys a used vehicle, it goes through a rigorous point-by-point inspection to determine what, if anything, needs to be fixed.
Interested in Buying from a Used Car Dealership?
These days, there should be no reason to fear buying used. At least not at Go Auto!
Want to know more about any of our vehicles or our Certified Pre-Owned Program? Give our VIP Personal Shoppers a shout at 780-777-7777, or simply chat with us using the chat box that appears when you visit GoAuto.ca
With 40+ dealerships across Canada and free vehicle delivery anywhere in Alberta -- in case you decide to buy online -- there are major benefits to buying from used car dealerships.
