We all know there’s a high cost associated with buying new. Back in 1991 it was common for a vehicle to instantly lose 25% of its retail value simply by driving it off the lot and getting the ‘used’ designation. Not much has changed over the years with 2015-2016 vehicles losing between 11-15% after driving off the car lot of new car dealership.
It’s easy to throw numbers around and we have used car dealerships all over Vancouver Island & BC so why not use real market examples to look at honest savings between locally available new and used vehicles? To start with we will need to identify what buying ‘new’ actually costs, and then we can look at how much money you can save buying used vehicles. To wrap things up we should also discuss how to buy used vehicles safely without hassle.
What is the real cost of buying a new vehicle?
Hold onto your hat, because if we’re going to do this right, we need to go a bit deeper. The cost of buying a new car is a 2-part question because a lot of people are choosing to lease vs. buy. Surprisingly, a lot of new vehicle lease holders think that a lease makes them immune to the depreciation and shields them from the expense of owning ‘new’ cars. So let’s take a moment to first look at leasing vs. buying a new vehicle.
How much does leasing a new vehicle save me from depreciation?
It really depends on the car or truck you are purchasing. If it’s a nice luxury vehicle or a limited/performance edition you really want to own, then a lease is simply out of the question. Even with a really generous lease, you can save a lot of money financing/buying a vehicle vs. leasing + buyout.
Ideally you want to lease when you are interested in a low value vehicle that doesn’t hold up to mileage well. Since most manufacturers only cover 60,000 – 80,000 km on the powertrain, there’s no point in owning a vehicle you aren’t fond of, especially if it’s falling apart after 80,000kms of leased mileage.
Since we’re discussing the depreciation incurred when driving a vehicle off the lot, it’s important to note that the immediate depreciation of taking ownership of a new car means you’ll owe more than what you could re-sell the vehicle for during the initial lease period! If you get a lease with heavy buyout fees this could be a real issue for a new car buyer.
How much more does buying a new luxury/performance vehicle cost?
Let’s make this as honest/accurate as we can and compare the exact same vehicles from nearby dealers!
Galaxy Motors in Courtenay BC has a 2015 Ford Explorer XLT 4WD with the full bluetooth/LCD nav package for $33,898.
The exact same vehicle in blue, from Westview Ford in Courtenay (just 5 mins away) will cost you $41,889 plus tax! That’s a $7,991 price premium to simply purchase/drive a vehicle with no previous owner!
Here’s another excellent luxury pick from Galaxy Motors in Courtenay, a 2015 Chevrolet Silverado 2500HD 4WD 6.0L V8 with bluetooth and alloy wheels for $38,898!
Compare that with local GM dealers advertising the base model 2015 Chevrolet Silverado 2500HD 4WD MSRP at $50,690, and you’ll be paying over $11,792 for the premium of a ‘new’ truck. This is not including the additional trailer brake and hitch setup that is installed on our truck in Courtenay!
Buying used vehicles safely
It’s true that it’s very common for people to save a lot of money buying used vehicles, especially performance/luxury vehicles, but there’s some important considerations!
Why is Galaxy Motors a safe way to shop for used cars?
Honestly, it’s really easy to burn money buying a new vehicle. It’s expensive/risky for all the reasons we’ve explained above.
At the same time, while it’s possible to SAVE A LOT OF MONEY by purchasing used cars and trucks, you can still get burned if you don’t shop with caution!
CarProof Vehicle History Reports
At Galaxy Motors we have CarProof reports for every vehicle we sell to ensure our clients know the history of the vehicle they are purchasing.
155 Point Mechanical Inspections
At Galaxy Motors we conduct a thorough 155 point mechanical inspection on each used car and truck that we purchase. We wouldn’t want to purchase a vehicle without knowing it is mechanically sound and this precautionary effort is passed on to our clients.
25 Years Experience & 5 Locations in BC
Over the years we have built up the experience and knowledge needed to give each vehicle we purchase a thorough appraisal and history checks. We take our customer reputation very seriously with lots of 4-5 star testimonials from used vehicle customers on Vancouver Island and in the lower mainland.
The Galaxy Motors BBB profile is also a point of pride when you consider the volume of clients we serve and the opportunities for misunderstandings.
Easy Automotive Financing for Used Vehicles
With great financing on used vehicles, starting at just 4.45%, and no payments for up to 90 days (*limited time offer!), the ease of buying used is a no-brainer.
In fact at Galaxy Motors we recommend getting the financing done first so you know how much you can spend. It’s much easier to shop our huge inventory of used vehicles if you already know what price ranges to look at.
Get Discounts on Used Vehicles
Galaxy Motors has a $750 employee discount for or DND/Military personnel, BCFT, VIHA, and BC Ferries:
Galaxy Motors $750 Employee Discount Program
Galaxy Motors now offers incentives to the following organizations. Please choose one to find out more information.