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Why are used cars so expensive in canada?

Why are used cars so expensive in canada?

Old Feb 25th 2009, 10:41 pm
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Default Re: Why are used cars so expensive in canada?

I'm glad to know about car prices in Canada as I plan to get a car as soon as we arrive in BC. I just want a used car that is in good working condition. For me a car is something that will get you from A to B. Our car in UK is nearly nealy 6 years old and was bought brand new.

If we were to stay in UK we were planning to keep it for 2 more years as it didn't give us any problem since we got them. The only reason that we would consider changing it is that my children are growing fast so perhaps a bigger car which is what I plan to get when we get to BC.
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Old Feb 25th 2009, 10:47 pm
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Default Re: Why are used cars so expensive in canada?

Originally Posted by screene View Post
Going back to the original question, I think it's because cars in the UK are bought as status symbols. The age of the vehicle is apparent from the reg plate, so many people don't want to drive around in an 'old' car.

I'm used to doing my motoring cheaply here, because I run old cars. Big old cars are worth next to nothing, and Jap cars depreciate quickly despite their excellent reliability. Just check the UK price of something like a 10-year-old Honda Legend (Acura in Canada) - £1700 for a car which was £32000 when new.

While I expect to save on the cost of accommodation in Canada, I think I'll be running a newer and more expensive car just because the market's different and you can't make the same savings by running a big, old car.
Thats just it bangornomics doesnt work so well cos the old things dont get cheap enough!
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Old Feb 25th 2009, 11:46 pm
  #48  
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Default Re: Why are used cars so expensive in canada?

Originally Posted by JandS View Post
Thanks for all the above replies. Something to think about when I walk onto the forecourts in Vancouver. New Vs Old; import Vs domestics......I am sure I will fingure something out. Is long term lease a sound option?
Long term lease...depends on what you consider long term. Most leases are a max of 3 years. Payments are certainly lower, but do the math. Add up the total of your monthly payments for a 3 year lease and for a 5 year purchase. On a lease you pay tax only on the payment, not on the price of the car. Depending on the vehicle you choose, you may discover that the purchase payment isn't exorbitantly more. And at least you own it. No worries about mileage limitations. Drive it all you want. Those excess mileage penalties at the end of a lease can get costly. You are also responsible for excess wear and tear. Kids stain the upholstery? On you. More than minimal scratches and dents? On you. Windshield cracked? On you. And you can't bring it back with the tires worn off, or the brakes shot, or the A/C not working. They measure the tire depth, and if the tires fall below what is required, you pay for tires. Any mechanical problems are expected to be repaired. I've seen too many people return leases and get hit with thousands in costs. That type of situation occurring usually falls on the failure of the sales rep to explain the clients obligations. Too easy to sell a payment and pass over the other details.

That said, leasing works very well for some people. If they KNOW how much they will drive, great. No little kids to spill orange pop all over the carpet and seats or scratch the paint? No dog to make it stink and fill it with dog hair that is a pain to get out? You can build in excess k's if you drive a lot. Payment is higher, but you are protected. Drive 60k a year? I'd say buy the k's and lease. No one wants to own a 3 year old car with 180k on it and two years of payments left. It isn't worth even half the balance owing, and if it is having issues, you are stuck with it or have to bite the loss and get rid of it.
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Old Feb 25th 2009, 11:51 pm
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Default Re: Why are used cars so expensive in canada?

Originally Posted by screene View Post
Going back to the original question, I think it's because cars in the UK are bought as status symbols. The age of the vehicle is apparent from the reg plate, so many people don't want to drive around in an 'old' car.

I'm used to doing my motoring cheaply here, because I run old cars. Big old cars are worth next to nothing, and Jap cars depreciate quickly despite their excellent reliability. Just check the UK price of something like a 10-year-old Honda Legend (Acura in Canada) - £1700 for a car which was £32000 when new.

While I expect to save on the cost of accommodation in Canada, I think I'll be running a newer and more expensive car just because the market's different and you can't make the same savings by running a big, old car.
Toyota and Honda do NOT depreciate quickly by comparison to others. But when you mention high line cars, no matter who makes them, you are always talking about higher depreciation. There is a smaller market for them and depreciation is usually a percentage of original value, and that adds up to much more annual depreciation on expensive models. Toyota Corolla, Camry, Tacoma and others, Honda Civic and Accord and others, hold fantastic resale values. Nothing beats them overall.
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Old Feb 26th 2009, 7:55 am
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Default Re: Why are used cars so expensive in canada?

Originally Posted by dakota44 View Post
Toyota and Honda do NOT depreciate quickly by comparison to others.
My point is that cars like the Honda Legend depriciate in a way that makes them exceptional value. If you pay £1700 for a 10 year old car, that's only about 5% of the new cost, yet it's probably only two-thirds of the way through its useful life.

From what I've seen of prices in Canada, a big 10 year old car holds more of its value. Looking on Autotrader.ca today, a similar 3.5L Accura for sale in Ontario seems to command a price of at least $10,000, which is more than three times what you'd pay in the UK.
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Old Feb 26th 2009, 1:46 pm
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Default Re: Why are used cars so expensive in canada?

Originally Posted by screene View Post
My point is that cars like the Honda Legend depriciate in a way that makes them exceptional value. If you pay £1700 for a 10 year old car, that's only about 5% of the new cost, yet it's probably only two-thirds of the way through its useful life.

From what I've seen of prices in Canada, a big 10 year old car holds more of its value. Looking on Autotrader.ca today, a similar 3.5L Accura for sale in Ontario seems to command a price of at least $10,000, which is more than three times what you'd pay in the UK.
I have discovered its the UK which is out of step in terms of heavy depreciation right down to the 500 quid barge bargain, I was talking to a canadian pal yesterday who is moving to france for a year. I suggested the cheap older motor as a sulution for his motoring need whilst there, we had a look at used car websites in france and lo and behold the prices where pretty much at canadian levels rather than uk prices. I think he is going to look at picking up a car in the UK now and drive it to france - although I can imagine there is a shed load of paperwork to do!

Last edited by snowshoveller; Feb 26th 2009 at 1:46 pm. Reason: typo
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