Here is how you can save on a vehicle in today’s market

Pat Foran has the latest money saving tips on buying a car in today's challenging market.

New vehicles are starting to become luxury item for many drivers, as car prices hit record highs with little relief in sight. The cost of purchasing a car has gone up so much that the average price of used car is almost the same as what a new car sold for seven years ago.

However, if you need a vehicle to get around and have to buy one, buyers are warned to be prepared for some sticker shock.

According to AutoTrader.ca, a new car in 2019 sold for $40,386, but in 2025, the average price jumped to $63,439.

The median of a used car six years ago was just $18,900, but last year, the price almost doubled to $35,201.

“This is the new norm, so if you have been thinking, ‘Okay, it used to be $25,000 and now it’s in the mid $30,000s, I’m going to wait it out,’ I would not suggest doing that,” said Baris Akyurek, vice president of Insights and Intelligence at AutoTrader.ca.

Vehicle purchasing checklist

If you’re planning to buy a new vehicle, watch out for dealership add-ons. You could be pitched extras you may not need or want such as warranties, rust protection, tire and rim protection, paint protection and GAP insurance.

“Add on products can add hundreds or even thousands of dollars to the price of a vehicle, so don’t let a dealership pressure you into paying for them and tell you that they are mandatory. They are absolutely not,” advised Shari Prymak, of Car Help Canada.

Leasing can make sense for some drivers but before you lease, there are trade-offs to consider.

“Make sure (you know) what the mileage limits are, the fees that you could face at the end of that lease, and any maintenance or repair that you have to pay when you turn in the car at the end of the lease,” said Keith Barry, of Consumer Reports.

When it comes to financing, if you’re buying new, you may be able to get incentives such as reduced interest rates through the manufacturer, and if buying used, it can pay to check with your bank and credit union.

“Sometimes dealerships offer promotional financing, which can save you a lot of money, but at the very least, talking to the bank gives you a baseline that you can compare against what the dealer offers,” Barry said.

When it comes to those really long 84 or 96-month loans, it’s best to think twice. The monthly payment may seem manageable, but interest can drive the overall cost much higher.

“The rate you’re paying off the car is far too slow, the vehicle is going to depreciate faster than the rate you’re paying it off,” Prymak said.

Whether you’re buying new or used, or even leasing, experts advise to not feel rushed into signing a contract, as there is no cooling off period when purchasing a vehicle.

Take the time to know what you’re agreeing to, and save yourself the stress down the road.

Car Help Canada also recommends buying a hybrid vehicle, as most don’t cost much more than a gasoline vehicle and can save you money on fuel. They’re also generally very reliable and have a higher resale value.