New vs. Used: Which Should You Finance?
Deciding between a new or used vehicle? We break down the financing implications of each choice for Canadian buyers.
One of the biggest decisions when shopping for a vehicle is whether to buy new or used. Each option has distinct financing advantages and considerations.
Financing a New Vehicle
New cars typically come with lower interest rates from manufacturers and lenders. You may also qualify for special promotional rates, extended warranties, and the latest safety features. However, new vehicles depreciate rapidly — losing 20-30% of their value in the first year alone.
Best for: Buyers with good credit who want the latest features and plan to keep the vehicle long-term.
Financing a Used Vehicle
Used vehicles cost less upfront, which means smaller loan amounts and lower monthly payments. While interest rates may be slightly higher, the total cost of ownership is often lower due to reduced depreciation.
Best for: Budget-conscious buyers, those rebuilding credit, or anyone who wants more car for their money.
The Sweet Spot: Certified Pre-Owned
Certified pre-owned (CPO) vehicles offer a middle ground — used pricing with manufacturer-backed warranties and thorough inspections. Many CPO programs include competitive financing rates.
Making Your Decision
Consider your monthly budget, how long you plan to keep the vehicle, and your credit profile. Our loan calculator can help you compare scenarios before you apply.
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