Laurie Bauer , CAIB | Business Development Manager , TW Insurance , now Orbit Insurance Services

NOW

If you ’ re in the market for a new car or truck , you ’ ve likely seen how limited inventory is . This is largely due to a global shortage of semiconductors , which has caused a major slowdown for auto manufacturers . The demand for used cars is surging to record highs . With higher demand comes higher prices , and possibly higher odometer readings .

Used vehicles are selling with up to 354 % more kilometres on them compared to 2020

According to a study , used vehicles are selling with more kilometres , for the same price as those sold in 2020 . This trend was seen across all price categories of used vehicles .

Used cars valued under $ 5,000 are being listed with 40 % more kilometres in 2022 than in 2020 ( an average of 273,065 kilometres ). High-end used vehicles valued over $ 45,000 saw the biggest shift , with an increase of 354 % between 2020 and 2022 ( an average of 16,962 kilometres ).

The odometer only tells part of the story While a vehicle ’ s odometer reading gives you a good indication of the amount of wear the vehicle has endured over time , it doesn ’ t give you the full picture . Other factors beyond the number of kilometres a vehicle has travelled will affect its lifespan , such as proper maintenance .

When purchasing a pre-owned vehicle , ask for a mechanical inspection and CARFAX report . The inspection will give you a better understanding of the overall condition , including brakes , engine , and transmission . This information will help educate you on potential future repair and replacement costs .

The CARFAX report — offered for free by many dealerships — gives you important details about the vehicle ’ s history . The report includes former ownership , province ( s ) in which it ’ s been

registered and any reported collision damage .

The good news : A used vehicle might come with a lower insurance rate

Used vehicles generally cost less to repair or replace than new ones , especially those without the expensive technology of many of today ’ s vehicles . Lower costs to repair or replace a vehicle typically lead to lower claims costs and potentially lower insurance premiums . Ask your insurance broker for a quote before purchasing a used vehicle to understand how it fits into your budget .

Orbit Insurance Services provides ARTA members with preferred rates and discounts on home and auto insurance . Our goal is to provide the right products at the right price with an exceptional service experience every step of the way .

If you ’ re getting ready to purchase a used ( or new ) vehicle , call Orbit at 877-976-7248 for a quote and to discuss your coverage options .

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