If you’re anything like us, even the thought of buying a new car is overwhelming.
From the pushy car salesperson, the massive signs in all caps shoving brands down your throat the moment the dealership comes into view, the hidden fees and confusing terminology across the forms you have to sign, to those creepy air-dancer tube-people (seriously, who invented those?). And with the current new vehicle shortage, there’s an additional layer of dread.
Then we discovered the possibility of buying used cars online through BC-based company Carooga — we’re talking searching through car catalogues, and yes, actually buying one while in your pyjamas cozied up on the couch in your home.
With the added bonus of more options to choose from and knowing you’ll be saving money, we know already that stress is probably starting to fade (we feel it too). To keep that tension at bay, we’ve curated some of the top benefits of buying used cars fully online.
There’s less depreciation
Everyone’s heard that the second you drive a new car off the lot, the value goes down. Well, it’s completely true. New cars lose approximately 20% of their initial value within the first year of ownership. Almost half of that is lost at the moment of purchase.
With buying a used car, you’re getting all those savings upfront. Generally speaking, a used car of the exact same make and model as a new car will cost less, even a 2021 model like this Toyota Rav 4. So, by buying new, you’re basically just paying to watch the dollars fly out the window — very similar to that feeling when staring at the screen while you fill up on gas.
It helps you maneuver the current vehicle shortage
If you’ve started browsing for new cars, you may have noticed that there’s not a lot on the market. Why? Mostly because of the lack of semiconductor chips — tiny computer chips that power rear-view cameras, emergency brakes, and power steering.
At the beginning of the pandemic, automakers anticipated a drop in car purchases and stopped ordering semiconductor chips. The semiconductor companies then shifted production focus to personal electronics that were in high demand at the time. Then in 2020, when new car purchasing ramped back up, the automotive industry had already lost its priority from the semiconductor companies. Hence the supply shortage we’re seeing today.
Used car companies, like Carooga, aren’t impacted by this production issue. Through services like theirs, you’re getting all the options and better prices.
“That’s not saying used cars don’t have their own supply issues,” notes Jillian Loeppky, Carooga’s brand officer. “Though Carooga’s technology and sourcing expertise has kept our lot full, we have seen a bunch of our neighbouring car dealerships actually coming to our site and buying our inventory online.”
You have more options
Not only do you have more options amidst the new vehicle shortage, but you’ll always have more choices within the used car market. There’s simply more inventory for used cars, especially within specific budgets.
And that doesn’t mean taking a hit on luxury to save on price. Carooga has tons of high-end vehicles (we’re talking 2019 to 2021 Range Rovers, Audis, and Teslas) for better prices than you’d get on a lot.
Why are the prices better? They don’t charge extra, unnecessary fees. “At a minimum, you’re paying $599 or more in unnecessary fees with every new car deal,” adds Loeppky. “In many cases that balloons to $1700 or more, if you don’t know what to look for on that final contract.”
You can get cheaper insurance
As much as we all love BC, no one loves the high prices of our province’s car insurance. Generally, since new cars are more expensive to fix or replace than used cars, your insurance will almost always be higher for a new vehicle. So why not save on your car and insurance altogether?
Get pre-qualified in minutes
Buying a car should be a fun process — it’s a big deal after all. Unfortunately, it’s often made less so by stressing about getting qualified for a car loan.
Carooga takes away that stress, too. They’ve created a system that allows you to qualify for their personalized auto loan rates in real-time, without impacting your credit score. All of this happens in just a couple of minutes through their website, so there’s no time wasted in a dealership — or even having to talk to anyone.
There are no extra or hidden fees
We already touched on this, but we really aren’t a fan of these hidden fees. The price attached to the massive bow on the hood of a new car usually won’t include the various fees you’ll see on your final bill — not to mention the cost of any add ons you might want to attach to your new vehicle.
Another perk of buying a used car is that any features included in the vehicle are already added and therefore included in the price.
As for hidden fees, as Western Canada’s first fully online car buying process, Carooga offers all the same functions a physical dealership does, but they show you everything upfront — without a catch. The company also offers a free, seven-day test-drive period (giving you a little glimpse of your potential new ride) as well as free delivery to your home. So, shop on your own time — without pressure — and have fun with the process.
To learn more about the benefits of buying used cars online, or to start browsing, visit Carooga.com.