New and used vehicles depreciate at different rates, but the amount depends on make, model, condition, kilometres, demand, and market supply. Compare the current asking price and realistic resale value for the specific vehicles you are considering.
A certified pre-owned vehicle may include an inspection or additional coverage, but the program, price, and warranty differ by manufacturer and dealer. Read the inspection scope and warranty terms, and arrange an independent inspection when appropriate.
Compare the full out-the-door cost, including provincial sales tax, registration, fees, and any trade-in value. Tax treatment of dealer and private sales varies by province or territory and transaction type.
Get current financing offers in writing and compare annual percentage rate, term, required down payment, fees, and total interest. Promotional rates, cash rebates, and used-vehicle rates change and may have different eligibility rules.
Buying new may fit if you need a feature not available on a used vehicle, plan to keep it for a long time, or receive an incentive that changes the total cost. A used vehicle may fit when its price, condition, warranty, and financing compare favourably. Base the choice on specific offers rather than a national depreciation rule.
For each candidate, compare purchase price, expected maintenance, insurance quotes, fuel or charging, financing, and likely resale value over the period you expect to own it. Reliability varies by year and model, so check current vehicle-specific information.
Worth It If You...
- People planning to keep the car for 10+ years, spreading depreciation over a long period
- Buyers who qualify for 0% manufacturer financing (this significantly changes the math)
- Those who need a specific feature only available in the latest model year
- Buyers of models that hold value exceptionally well (certain Toyota/Honda models)
Skip It If You...
- Anyone planning to trade in or sell within 5 years — you’ll absorb the worst depreciation
- First-time car buyers on a budget
- People who just need reliable transportation from A to B
- Buyers whose financing and ownership costs exceed their budget
Pros
- +Manufacturer warranty coverage, subject to its start date, limits and exclusions
- +Latest safety technology and features
- +Exact colour, trim, and options you want
- +Promotional financing may be available, subject to current terms
- +No unknown maintenance or accident history
Cons
- −Resale value can fall; the amount depends on the vehicle and market
- −Insurance premiums may differ; compare quotes for the specific vehicles
- −Sales tax depends on the province and transaction, including any eligible trade-in
- −Higher registration fees in some provinces
- −Paying a premium for the "new car" experience
The Bottom Line
There is no universal new-versus-used winner. Compare current offers, total ownership costs, warranty terms, condition, and the time you expect to keep the vehicle.
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