Buying a New or Used Car in 2022: Everything you need to know
Buying a New or Used Car in 2022: Everything you need to know
Posted on December 7, 2021
One of the less widely publicized side effects of the COVID-19 pandemic has been the dramatic fall in a number of new cars available to Canadian buyers. A global shortage of semiconductors has been caused by a combination of booming sales of consumer devices during the lockdown, automakers scaling back on their orders early on in the crisis, and then a disastrous fire taking out a major chip plant to make things even worse.
Modern cars are hugely reliant on semiconductors, and with fewer chips available, vehicle production has inevitably been hit hard. It's estimated that 2021 will see only around half of average production levels in Canada, with an obvious impact on the availability of new vehicles in the showrooms countrywide.
Upgrading Your Drive: New vs Used Car Options?
What does this mean for those looking to upgrade their car in 2022? One of the biggest choices to make is between buying a new model that may be in short supply or hitting the used market to find a bargain with a few more kilometers on the clock. Which is right for you? Read our new vs used car buying guide to find out.
Benefiting from Depreciation
One of the biggest advantages of buying a used car is that the price is dramatically lower than a brand-new equivalent, even for near-identical vehicles. On average, a car loses between ten and fifteen percent of its value within a year of purchase. This means buying a nearly new vehicle that's one year old could get you nearly all of the features of the factory-fresh models, but at a substantial saving. What's more, a nearly new car will usually have only a small amount of driving behind it, and will still be covered by the manufacturer's warranty, taking virtually all of the risk out of buying a used.
Trade Up a Level
And while these savings are attractive on any vehicle, the benefits become even greater when you look at higher-end vehicles with more expensive price tags. A saving of 15% on a $50,000 vehicle is clearly much more valuable than saving 15% on a $25,000 car. In effect, the more you're willing to spend, the more upmarket you can take your purchases when buying a year-old model rather than a brand-new one.
Lower Trade-In Value
However, buying a nearly new car does have one disadvantage over a slightly older used one. While depreciation is greatest in a car's first year. It will also lose another chunk of its value in the second and third years. Buying nearly new means you won't recoup as much of your money when the time comes to trade in for a newer model. However, this effect is less than with a brand-new model, and the longer you keep the car, the less important it becomes.
Explore the Premium Used Cars Inventory in Westshore
Don't let the global chip shortage stop you from upgrading your drive in 2022. Visit Galaxy Motors to explore the best inventory of used vehicles in Westshore, and find yourself a nearly new model that packs all the features you need without the high price and waiting times of a brand-new car.
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