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Should I buy a New or Used Vehicle?

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In today’s day and age, the variety of new and used vehicles available to consumers has gone up tenfold in comparison to what our parents grew up with. Power windows, cruise control, and air conditioning used to be the hot commodities to look for in vehicles. Now, the world of autonomous driving is at our doorstep. Technology has been implemented into every vehicle whether it is something the driver can twist by the turn of a knob or a computer module telling the engine how much turbo it needs to take in. With this ever-increasing number of different makes, models and technologies, consumers have the ultimate question: is it more beneficial to purchase a new or a used vehicle?

Price is one of the biggest and most important factors that the industry sees everyday for a vehicle purchase. While some customers may be paying cash for the full amount, a majority are focused on the monthly payment. This is where the amortization period and interest rate versus a new or used vehicle needs to be calculated. This will not only determine if the vehicle works for a monthly budget but also it will show if a new vehicle will only be a minimal dollar increase compared to purchasing a used vehicle. The articles photo shows a diagram of an example with taxes and fees all included.

As you can see from the illustrations, interest rates can change a monthly payment quite drastically but it is dependent on the amortization period. The longer the term of the loan, the more the interest can add up and the total cost of the vehicle will also increase. Therefore, it is very important as a consumer to understand the benefits of interest rate versus price.

The next big factor when purchasing a vehicle will be depreciation. A vehicle that is five years old will have seen roughly 50-60% depreciation depending on the condition and kilometers of the vehicle. Many websites will state that exact percentages for the first and second year but there are actual factors that determine these percentages and will make them vary. New model year changeovers, manufacturer discounts and the kilometers put on a vehicle will affect the value of the vehicle. If the vehicle is going to be kept until it is sent to the wreckers in fifteen to twenty years then depreciation will be the least of concerns.

The remaining warranty of the vehicle can also play a decisive role in a purchase. The monthly cost for repairs will be a considerable factor if a vehicle no longer has any warranty left. With how much technology is being implemented into newer vehicles, the cost to replace computers and electronics can be expensive. The two major warranties to inquire about will be comprehensive and powertrain warranty. Comprehensive warranty will cover almost everything between the vehicle’s front and rear bumpers and the powertrain warranty will cover the engine components, drivetrain and transmission. There are other warranties that come with vehicles but these two will be the biggest ones that will cover unexpected costs in vehicle repairs. Bear in mind, vehicle maintenance will be different than vehicle repairs and some manufacturers also include maintenance in their warranties.

At the end of the day, the choice will always be up to the consumer. Purchasing a new vehicle can have its perks at a higher cost; while purchasing a used vehicle can allow allotment of money to go elsewhere. Numbers, budgets and benefits will determine a vast majority of vehicle purchases. However, there will always be the one last factor the seals the deal: the emotion of loving the vehicle that you just bought. We hope you’ve enjoyed this article, please check out our next one which will be titled, “Do I need to take my car to the dealership I purchased it from for service?”

For more information CLICK HERE.

Kipp Scott GMC Cadillac Buick is a family-owned business that has proudly served Red Deer, and all of Alberta, for over 50 Years since first opening our doors in 1968. Treating our customers with respect has always been our number-one priority, and we believe when it comes to selling vehicles, honesty is the best policy. Rest assured we’ll do everything we can to make sure you leave our dealership 100% satisfied.

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Downtown Business Spotlight: Motion

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This week’s Business Spotlight shines on Motion! This business specializes in customized mobility and home accessibility solutions for clients of any age and is located at 4720 50 Ave. We sat down with Regional Manager, Trudy Russell, to learn more!

What is your business?

Motion is Canada’s leading provider of comprehensive and customized mobility and home accessibility solutions for a wide variety of clients from children to elderly adults. Serving communities in Alberta, BC, Ontario and Saskatchewan for more than 30 years, it is Motion’s mission to improve the lives of our clients every day with solutions that are delivered professionally, consistently and with integrity.

When did your business open?

Motion (formerly Motion Specialties) began serving the Red Deer community in October 2011. Previously located at 5301 43 Street, our facility moved to 4720 50 Avenue in the heart of downtown in June 2017 – an exciting opportunity to become a part of the Downtown Red Deer Business Association.

What makes your business unique?

The products and services we provide are truly life changing. It’s the difference between someone being bed ridden or limited to where they can go vs. getting outside, visiting family and friends, and continuing the activities they love the most. Our clients are people with important life needs and our caring and knowledgeable experts understand the importance of customized solutions.

What are some products/services that you offer?

Products include wheelchairs, walkers, scooters, stairlifts, ramps, ceiling lifts, homecare beds, and more. Whether a client is being fitted for equipment for the first time, is in need of an equipment repair, looking to upgrade their solution or looking to rent equipment following a surgery or due to injury, Motion’s knowledgeable experts are ready to deliver with the utmost of care and respect.

Why did you choose Downtown Red Deer as the location for your business? 

As it is Motion’s vision to make life accessible for everyone, this is top of mind when choosing a location for our facility. Clients need to be able to drive their scooter or power wheelchair, for example, with ease not only in our facility but in the community where we are situated, and Downtown Red Deer offers this accessibility.

What do you think makes Downtown vibrant?

The buildings, including ours, have history and character; we were a Simpsons-Sears in the 1960s! Keeping Downtown Red Deer alive with the Farmers Market in the Summer, featuring local Artists sharing their beautiful voices, is always a wonderful event to witness.

I love Downtown Red Deer because… It’s an incredibly close-knit and supportive community that we’re proud to be a part of.

If you’re looking for a business that specializes in making life accessible for all, look no further than Motion. Check out their website and social media pages!

Website: https://motioncares.ca/locations/red-deer 

Facebook: https://www.facebook.com/motioncares

Instagram: https://www.instagram.com/motioncares/

Twitter: https://twitter.com/motioncares

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Central Alberta

Third Aviation School coming to Red Deer Regional Airport

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From the Red Deer Regional Airport

The Red Deer Regional Airport is proud to welcome their newest aviation business to Central Alberta, the Canadian Aviation College!

The Canadian Aviation College is a designated training institution who currently operate from their main college in Pitt Meadows, British Columbia, and are happily transitioning a secondary location to the Red Deer Regional Airport. This transition into Central Alberta with both single and twin-engine aircraft will allow students and instructors from the college to take advantage of the diverse landscapes of the region, while utilizing the consistent winter weather of Alberta.

As a student-oriented aviation training facility, the team at Canadian Aviation College focus on empowering their students to graduate with a higher level of experience and be better suited for employment in Canada. International students who graduate from their Commercial Pilot Program are also eligible for post-graduation work permits in select countries. The economic impact of students within Central Alberta is immense.

Students with the Canadian Aviation College will live within Central Alberta as they complete their studies, and this number of students will continue to grow year after year. These students are able to contribute to the local economy by eating meals, visiting sites, and contributing to daily activities and transportation. This addition to our local economy is vital in times such as these.

“Students are a huge economic driver for Central Alberta, and we are so happy to see upwards of 100 students here with the Canadian Aviation College as we look to the future”, says Graham Ingham, CEO of the Red Deer Regional Airport. “The Airport has continued to remain busy throughout 2020, with essential service business and VIP traffic, and this addition of the airport’s third aviation school is a fantastic benefit to that economic impact.”

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november, 2020

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