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Buying new car can lead to 'depreciation depression': survey

VANCOUVER (NEWS1130) – Canadians are feeling frustrated the moment they drive that new car off the lot. A new survey has found nearly half of new-car buyers experience a range of unhappy emotions.

The study was done by Kijiji, an online classifieds site. Scott Neil with the company calls those bad feelings ‘Depreciation Depression.’

“From the survey result, what we found is that a new car loses about 15 per cent of its value. And these are ranges because different makes and models depreciate at different rates,” he explains.

“It causes them to feel a range of emotions from being annoyed, upset, to angry, or downright depressed,” he notes, adding used-car buyers are less likely to feel those negative emotions.

The study found used vehicles tend to depreciate at a slower rate and Neil says those buyers also save money on insurance premiums and maintenance costs. On average, those frugal buyers are saving more than $100 a month.

The survey found buying a three-year-old vehicle can save you thousands of dollars over a five-year period.

Buyers are advised to have the vehicle inspected before making a purchase. And when you arrange to do a test-drive, make sure the engine is cold when you start; that will give you a better idea of how well the car starts, no matter now long it’s been parked.