Best used cars in Canada for 2024

Car-buying costs to consider

Once you’ve decided on a vehicle, shop around to get a feel for current prices. Then break out your calculator. There’s more to a vehicle’s cost than its sticker price. Add up the overall cost to own, including insurance, gas, maintenance, taxes and—if you’re getting a car loan—interest fees.

Before financing your purchase, compare the interest rates offered at the dealership and your bank. Most dealers offer financing on used vehicles, and they can help to arrange loans with prime or subprime lenders.

Be sure to consider the wheels and tires on the car or truck you’re buying. Larger wheels are all the rage these days, but larger wheels are wrapped in larger tires, which tend to be pricier—both for all-season and winter rubber. Those 22-inch wheels sure look great, but the 18-inch wheels could save you hundreds or thousands of dollars when it comes time for new tires.

Check the fuel your vehicle requires, too. Aside from specialty luxury and performance models, most engines today are built to run on regular-grade 87-octane gasoline. To confirm, check the owner’s manual. If the car you’re after recommends premium fuel, you can typically still use lower-octane gas but with a slight reduction in performance. If premium fuel is required, you’ll be spending more on pricier gas every time you fill up.

Another cost to consider: an add-on warranty package. Typically offered by used car dealers during negotiations or at the completion of the sale, an extra-cost warranty is a great way to boost peace of mind and confidence by fending off future repair bills. These packages typically range from a few hundred to a few thousand dollars, depending on the coverage you purchase. The most common extended warranty packages will run between $1,000 and $2,000, and some are available on a subscription basis, with pricing about $50 to $80 per month.

Before you buy the warranty package, though, consider whether you could get the same benefit by creating your own contingency fund for repairs. This way, you’ve got money set aside if something goes wrong—and you get to keep that money if nothing does.

Warning signs for used cars

As with any big-ticket item, you should be aware of the warning signs that a vehicle may not be worth buying.

• Ask the dealer for a Carfax report. It shows the vehicle’s history including previous owners, accident claims, flood damage, and provinces the vehicle has been registered in.
• Get the vehicle’s service history. If your used car is still covered by some portion of the remaining warranty, you may be required to prove that the car has been serviced on time, every time, before a repair is authorized. Remember: your used car’s remaining warranty doesn’t cover damage or wear caused by a failure to maintain the vehicle properly. To avoid potential surprises, take steps to obtain all service records from the seller (and any previous owners) in case a warranty repair is required.
• Watch out for cars with suspiciously low kilometres. The average daily driver will clock around 20,000 kilometres per year, so if a four-year-old vehicle only shows half of the expected 80,000 kilometres, you should find out why. Remember, cars can develop problems when left to sit for too long—meaning that ultra-low-mileage car could be concealing a weak battery, excessive braking component rust, or damaged and flat-spotted tires.
• Avoid vehicles with extensive modifications. Many of these can void parts of your car’s remaining warranty (if applicable), or even void the entire warranty, depending on the situation. Some modifications can cause damage and wear that’s not covered by warranty.

Inspecting the vehicle

Never rely solely on what anyone tells you about a used car’s history or condition. Again, ask for a Carfax report, and learn to look for simple signs of excessive wear.