Canadians have a case of the new car blues

Many of you may know this feeling: you just bought a new car and can’t wait to take it home and show it off; you feel like you’re on top of the world! Unfortunately, that feeling shifts quickly and depreciation depression sets in.

Nearly half of Canadians say they’ve experienced depreciation depression –  the annoyed, upset, or angry feeling that comes with knowing the pace at which new vehicles depreciate and lose their value. It can get so bad that a recent survey by Kijiji Autos revealed that one in four new car owners try not to think about the depreciating value of their car.

The good news is that you don’t have to suffer from depreciation depression when you buy a used car. With over 250,000 car listings on Kijiji Autos at any given time, it’s easy exactly what you’re looking for, in a used car.

To make your next car a used car, here are a few tips:

  • Know your history. Always ask the seller for a car’s Used Vehicle Information Package (UVIP) and request and read a copy of the vehicle’s CarProof Vehicle History Report.
  • Invest in inspection. Have a professional inspection done by a licensed technician. This can help avoid unanticipated problems and expenses down the road.
  • Go in cold.  Try to arrange the test drive when the engine is completely cold. It will give you a good idea of how the car starts, regardless of how long it’s been parked.
  • Check it inside and out. Inspect the car yourself, inside and out. This is a great way to get to know the vehicle, and to find any issues with worn materials, tire treads or rust that may need attention.
  • Count the miles and the time. Vehicles today are built to last much longer than vehicles built decades ago. You may need to consider some maintenance when a vehicle has accumulated over 100,000 kilometres. It’s also a good idea to find out how recently the timing belt was replaced, as this can be an added expense for higher mileage vehicles.
  • Get your motor runnin’. You’ll learn a lot about the car by taking it for a quick drive around the block to see how it handles, how it sounds, and how the electronics are working.

But even with the tips above in mind, some of our readers might be wondering: How do I know which vehicles depreciate quickly and which ones lose value slowly?

Kijiji Autos has prepared the following comparisons based on the site’s vehicle listings,  and ‘best bets’ to keep in mind when you’re ready to purchase a used vehicle:

 

Model comparisons:

  • BMW vs Audi vs Mercedes (3 series vs A4 vs C class): between 2010 and 2011 the 2002 BMW 3 series was 15 per cent, 2002 Audi A4 was 17 per cent, and the 2006 Mercedes C class was nine per cent.
  • Honda vs Toyota vs Nissan (Accord vs Camry vs Altima): between 2010 and 2011 the 2002 Honda Accord was 14 per cent, 2002 Toyota Camry was 10 per cent, and the 2002 Nissan Altima was 15 per cent
  • Chevrolet vs Ford vs Chrysler (Cavalier vs Taurus vs Intrepid): between 2010 and 2011 the 2002 Chevrolet Cavalier was 11 per cent, the 2002 Ford Taurus was 17 per cent, and the 2002 Chrysler Intrepid was 13 per cent.

 

‘Best Bets’ for low depreciation:

  • 2002 Ford f150: eight per cent
  • 2010 Ford f150: eight per cent
  • 2006 Ford Mustang: seven per cent
  • 2007 Acura CSX: eight per cent
  • 2007 BMW X3: five per cent
  • 2000 Buick Century: eight per cent
  • 2010 Cadillac Escalade: six per cent
  • 2008 Honda Pilot: eight per cent
  • 2007 Jeep Wrangler: seven per cent
  • 2002 VW Golf: seven per cent

 

Click to Download in PDF

Happy car hunting!

 

 

32 comments on “Canadians have a case of the new car blues

  1. This is really insightful and highlights a legitimate concern for car owners. One way of thinking about depreciation is to consider the old adage, "you get what you pay for". High rates of depreciation for particular vehicle makes or models typically reflect unsatisfactory owner experiences. If it becomes known that a particular car is expensive to maintain, either because of unreliability or parts that wear out too quickly, it is likely that it will depreciate more quickly than similar vehicles that are known to be more durable or trouble-free. The initial purchase price of slower-depreciating cars is often higher, but the offset is they retain their value better and can be worth more at trade-in. Better cars, that is, cars the deliver the best ownership experience generally cost more to buy but cost less to run over the long haul.

    Car buyers need to consider the total cost of ownership, including depreciation, before plunking their hard-earned cash down. Research, research, research – before you buy. There are lots of great internet resources out there including pricemyride.com that can help buyers make smart choices. In many cases, buying used allows car shoppers to avoid the worst hit from depreciation and lets them get into a vehicle with lots of kilometres left in it. That said, it's still important to consider fuel, insurance and maintenance – the total cost – over the anticipated term of ownership before you buy.

    • great reply… thx :)
      We agree that total cost of ownership is a big factor. Insurance premiums on certain cars that might be considered 'high risk' makes owning that affordable car no longer as affordable. Same goes for gas and maintenance.

      We'll be looking to do an update on this research next year, so keep an eye out!

    • That’s more than sensblie! That’s a great post!

  2. then don't buy new

    how fucking hard is that?

  3. Thanks for posting this Bart! Infofraphics are awesome and used car depreciation stats are great! Great job

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