New vs Used Cars: Compare the Costs

Compare cars you’d actually buy

Start with two or three real options. A new car with the wrong seating or a used bargain that won’t fit your gear isn’t much of a shortlist.

For each car, note the year, trim, engine or motor, kilometres and features. Try the seats and cargo space in person. Features can change between years and trims, even when the badge is the same.

Look past the price tag

The purchase price is only part of what you’ll spend. Get an insurance quote for each car, check the financing and leave room for maintenance and repairs.

Compare	New car	Used car
Price	Car and selected options	Car and any work it needs now
Financing	Quoted rate, term and interest	Quoted rate, term and interest
Condition	Check the car at delivery	Check history, servicing and inspection results
Warranty	Coverage, exclusions and time limits	Remaining or offered coverage and its terms
Timing	In stock or on order?	Ready to collect or waiting for work?

Pick a time frame

How long do you expect to keep the car? Use the same period for both options. Then fill in this worksheet.

Cost over your chosen period	Car A	Car B
Cash paid up front
Loan payments
Loan balance left at the end
Insurance
Fuel or charging
Maintenance and repairs
Parking
Subtract the estimated resale value
Total cost

Try a lower resale value and a higher repair budget too. That shows how much room you have if ownership costs change.

Get a closer look

For a used car, ask for the history, condition details and service records. An independent inspection can help answer questions a test drive won’t. OMVIC’s shopping guidance is a useful checklist.

For a new car, confirm the trim, features and delivery timing. If it’s on order, ask what the quote says about price changes or delays.

Choose what works for you

One car might free up more money each month. Another might have the feature you use every day or the warranty you want. Put those benefits beside the cost, then decide what earns its place in your budget.

Use the affordability calculator to set your range. When you’re ready to shop, bring the Ontario buying checklist.