Daniel Ivans, a licensed insurance broker and expert at Rates.ca, said the savings between new and used vehicles vary widely by model and depend on how each one ages.
“A used vehicle can sometimes lead to lower overall costs, but the savings depend heavily on the model’s risk profile,” Ivans said. “Newer vehicles often come with higher premiums because repairs are more complex and expensive, while older models can see higher costs if their safety ratings or recall history raise the likelihood of claims.”
Sam M., finance director at Empire Auto Group, said many used-vehicle shoppers end up paying more than expected because salespeople are not giving them enough information about the vehicles they buy.
“Basically, people selling cars these days don’t have enough product knowledge,” he said. “As the market gets more competitive because there’s more people looking for the same vehicles and fewer dealerships that offer them, a salesperson really has to apply himself and really gain the trust of the consumer.”
Sam said poor product knowledge leads to gaps in customer understanding, particularly around maintenance needs.
“Unfortunately, a lot of these salespeople are just trained to sell and focus on their commission, and not really take pride in the craft, which is what I consider car sales,” he said. “I think it’s a craft.”
Empire Auto Group said those gaps often result in buyers skipping routine maintenance, which can lead to more expensive repairs within a short period of ownership.
Ivans said the findings show that buyers should consider more than the upfront cost.
“A lot of people focus on the sticker price, but insurance, long-term maintenance and depreciation can shift the overall cost more than they expect,” he said. “Laying out those expenses in advance helps drivers see which option truly fits their budget.”
The findings suggest the choice between new and used cars depends on how well buyers understand a vehicle’s long term costs.
