I recently had the idea of buying a small used car. I have to be outdoors frequently and have been trying to get a “bazou” to cover the miles and avoid using my private car.
I often make such purchases and love them. I browse online marketplaces and browse, sift and scan the market to find the perfect vehicle for my situation. To give you an idea, not long ago, on a budget of $1,500, I was able to find an old but still working car.
I am therefore looking for a small car that is very affordable to easily transport me from A to B. Of course I am looking for a safe product that will not be destroyed by rust or endanger my own safety or that of others. I don’t care about age, mileage or options, I just want to get around. Then I complete my usual lengthy process and am amazed at how badly the used car market is being hit by inflation.
The Saturn Astra
At first everything seemed the same as before. There are quite a few entries within my search radius and the cars made me feel like they were still in good condition. Then I start writing to the various sellers of the vehicles I’m interested in and wait.
When, by some incredible coincidence, the person bothers to reply to me, it is mainly to let me know that I am on a waiting list because several other buyers have already scheduled an appointment to test drive the vehicle. I’ve only just started shopping so will keep on the lookout for the next opportunities.
I get a little paranoid and keep my phone close to me so I can reply at lightning speed. Then I see a 2009 Saturn Astra, red, manual, 90,000 miles, for the sum of $2,200. Even if the price is higher than my initial budget will allow, I’ll quickly text the owner to make sure I’m first in line.
I’m happy to hear that I’ll have a look at the vehicle to take a test drive and make sure everything is in good condition. A twist, and despite the owner’s honesty, the Astra is in poor shape. The power steering is badly broken, the exhaust system is noisy and the body is perforated in several places. This Astra is definitely not worth the $2,200 the seller is asking, I’ll admit that.
The Honda Civic
A 2006 Honda Civic pops up empty-handed in my searches. It has only had one owner so far and costs $1,950. As with most Honda Civics of the era, the overall aesthetics of the vehicle are sub-par: paint is peeling and rusting in several places. I would like to remind you that I am only looking for a car that is reliable enough to get from point A to point B. This Civic could do the job.
No need to expand too much here, disappointment there! The bottom of the vehicle is completely oxidized and punctured; This Civic isn’t even safe to walk to the supermarket around the corner. Due to wear and tear, water penetrates the vehicle and a very annoying noise can be heard from the wheel bearing at the end of its useful life, even after the first kilometers driven. After driving 2 kilometers I returned it to its owner to tell him that this car would not suit me.
After three more attempts, I finally gave up on my project. After more than a month of shopping I could not find a working and safe vehicle, two criteria that seem pretty normal to me. The market has experienced severe inflation and I will have to wait for things to calm down before embarking on the adventure again. The other option available to me is to increase my budget significantly to find products in better condition. The cars that cost $2,000 today are the vehicles that sold for $500 a few years ago.
observation and fact
A few years ago, despite my small budget, I was able to buy used cars that were honestly in better shape than the five vehicles I recently tested.
If we look at the used vehicle sales statistics in 2023, we see that the market prices are higher than ever. In March 2023, the average price of a used car in Canada was just over $39,000, an overall increase of 5% compared to March 2022, according to the Autotrader website.
In Quebec, the provincial average is $37,218, up almost 10% from the same point last year. The company even adds that unless current conditions change significantly, used car prices are unlikely to drop anytime soon.
My heart goes out to people who simply want to buy a car on a budget. For me as a car enthusiast it was a luxury and above all a pleasure; But for some, this reality can put them off simply getting a vehicle for priority trips.
I remember my first vehicle, a 100,000 km 2009 Nissan Versa, cost me $3,500. With my student budget, that was the most I could afford to buy my first car. Today, for the same $3,500, I could have bought a Nissan Versa that was a few years older, had 125,000 miles on it, and might need repairs.
The solution? If you own a car that is still in good condition, keep it. Preventing rust, regular oil changes, brake maintenance and the occasional cleaning will help your vehicle last longer and help fight inflation in today’s automotive market.
Need to buy a car and your budget is $1,500? I advise you to be very careful and above all very patient. It’s not impossible to find a compact car that will last a few more years on this budget, but several checks are in order. First, examine the condition of the body and chassis. If they are rusted and punctured, change the product because this car just isn’t safe anymore. If specific maintenance needs to be done like an oil or brake change and the vehicle is generally in good condition, you might consider your search. While interviews can be expensive to conduct, they allow you to keep your new acquisition longer. In any case, I advise you to do business with a workshop you trust before you buy. Ask the seller if the vehicle can be inspected; If this is not possible, this can be a sign to jump to another ad.
In my opinion, the market will not be able to remain at this high level for the next few years. I’ve also noticed that none of the 5 vehicles I’ve tested in the last month have found a buyer, which gives me peace of mind. I have also noticed that the selling price has been corrected, leading me to believe, purely from observation, that we may be nearing a peak and used cars will soon be selling at a fair price.