New vs Used Cars: Complete Cost Breakdown
New vs Used Cars: Complete Cost Breakdown
Posted on July 14, 2025
When shopping for your next vehicle in Edmonton, one of the most significant decisions you'll face is choosing between a new and a used car. At West Edmonton Mall Toyota, we understand that Edmonton drivers need comprehensive information to make informed decisions that align with their budget and lifestyle.
The new vs used cars debate involves multiple financial factors beyond the initial purchase price, including depreciation, financing costs, insurance premiums, and long-term maintenance expenses.
Understanding the complete cost breakdown between new and used vehicles helps you make a decision that serves your long-term financial goals.
Buckle up for our comparison of “New vs Used Cars!”
New vs Used Cars: Initial Purchase Price
The most obvious difference in the new vs used cars comparison is the upfront purchase price. New Toyota vehicles can run between $23,000 and $80,000 in 2025. Used vehicles, depending on age, mileage, and condition, can range from $15,000 to $35,000 for quality options.
Corolla Hybrid XSE AWD Shown in Ruby Flare Pearl
However, the initial purchase price doesn't tell the complete story. New car buyers often benefit from several advantages that can offset higher upfront costs:
- Manufacturer incentives: Cash rebates, loyalty bonuses, and seasonal promotions • Low-interest financing: Toyota frequently offers low financing rates, like the 2025 Prius Plug-in Hybrid, which can be leased with a rate as low as 2.99%
- Comprehensive warranty coverage: Full manufacturer protection for major components
- Predictable costs: No surprise repairs during the warranty period
Used car interest rates typically range from 5% to 22%, with higher monthly and biweekly payments. They are usually higher than new car interest rates as the lender’s risk increases with vehicle age. (Credit score can also affect your rates)
Looking to lease a car instead?
Read: Finance vs Lease
New vs Used Cars: Financing Rates
The financing landscape for new vs used cars differs substantially, particularly in the current Canadian market. Manufacturers like Toyota often subsidize financing rates for new vehicles, offering rates significantly below market levels. These promotional rates can make new vehicle ownership more affordable than the sticker price suggests.
Used vehicle financing typically involves higher interest rates and shorter loan terms. While new vehicles can often be financed over six or seven years, used vehicle loans commonly max out at five years, resulting in higher monthly payments even with lower purchase prices.
New vs Used Cars: Depreciation
Depreciation represents one of the most significant considerations in the new vs used cars equation. Kelley Blue Book states, “A rule of thumb is that a vehicle’s value decreases by 20% in the first year of ownership.”
Used vehicles, particularly those that are three to five years old, have already absorbed the steepest depreciation curve. While they continue to depreciate, the rate is much slower and more predictable. A three-year-old Toyota that originally sold for $35,000 new might be available for $24,000 used, and may only depreciate an additional $3,000 to $4,000 over the next three years.
For Edmonton drivers who plan to keep their vehicles for extended periods, this depreciation difference becomes less significant. However, those who prefer to upgrade every few years may find that used vehicles offer better value retention relative to their purchase price.
New vs Used Cars: Insurance Coverage
Insurance costs vary significantly between new and used vehicles, with several factors affecting premiums for Edmonton drivers. New vehicles typically require comprehensive coverage, including collision and comprehensive insurance, which increases monthly premiums. The higher value of new vehicles also means higher replacement costs, directly impacting insurance rates.
Used vehicles often allow for more flexible insurance coverage options, but several factors affect premiums for Edmonton drivers:
New Vehicle Insurance Considerations
- Higher comprehensive and collision coverage requirements
- Increased replacement costs leading to higher premiums
- Advanced safety features may qualify for discounts
- Gap insurance options to protect against depreciation
Used Vehicle Insurance Benefits
- Optional comprehensive coverage for older vehicles
- Lower replacement values mean reduced premiums
- Flexibility to adjust coverage based on vehicle value
- Potential savings of $100-300 monthly on insurance costs
New vs Used Cars: Maintenance and Repair
Maintenance costs represent a crucial factor in the new vs used cars comparison. Unexpected repairs remain part of used vehicle ownership, but are also balanced by lower upfront purchase costs.
New Vehicle Maintenance Benefits
- Minimal maintenance beyond oil changes for the first 2-3 years
- Warranty coverage for unexpected repairs
- Scheduled maintenance intervals are clearly defined
- The latest technology reduces the likelihood of breakdowns
- Predictable maintenance budgeting
Used Vehicle Maintenance Benefits
- Potential immediate needs (brakes, tires, fluids)
- Lower parts costs and aftermarket availability
- Established service history provides maintenance insights
- More affordable to repair due to depreciated component values
- Opportunity to address deferred maintenance proactively
Looking to trade your vehicle in?
Read: 10 Tips to Prepare Your Car For Trade-In
New Toyota Vehicles
2025 Toyota Land Cruiser
The 2025 Toyota Land Cruiser exemplifies the value proposition of new vehicle ownership for Edmonton drivers. Powering through adventurous landscapes is no problem for the 2.4L Turbo Hybrid Engine that gives you up to 326 horsepower and 465 lb-ft of torque.
Land Cruiser 1958 shown in Brown Sugar Metallic
2025 Land Cruiser Advantages:
- Advanced Toyota Safety Sense 3.0 technology
- Improved fuel efficiency compared to previous generations
- Enhanced off-road capabilities for Alberta terrain
- Latest infotainment system with wireless CarPlay
The Land Cruiser's robust construction and proven reliability record make it an excellent long-term investment for Edmonton drivers who value capability and dependability.
The 2025 Land Cruiser starts at $73,908.00 MSRP, with financing rates around 6.49% and leasing rates around 6.79%.
2025 Toyota RAV4
The 2025 Toyota RAV4 demonstrates how new vehicles can offer compelling value despite higher upfront costs. As Canada's best-selling SUV, the RAV4 provides Edmonton drivers with multiple benefits.
If you’re looking for a family-friendly SUV with a comfy interior and tons of cargo space, this is the vehicle for you! The 2025 Toyota RAV4 ranges in price from $37,404 to $51,374, while hybrid models range from $55,650 to $65,866.
RAV4 Hybrid XLE Woodland shown in Army Green with Black roof
2025 RAV4 Advantages:
- Hybrid powertrain options delivering exceptional fuel economy
- Standard all-wheel-drive capability for year-round traction
- Advanced safety features, including a pre-collision system
- Spacious interior with flexible cargo configurations
- Strong resale value protection for future trade-ins
With gasoline prices fluctuating in Edmonton, the RAV4's fuel efficiency can save hundreds of dollars annually compared to older, less efficient used vehicles. The RAV4 LE AWD has a fuel efficiency rating of 8.7/6.9 L/100KM (city/highway), and the plug-in hybrid RAV4 SE AWD has a rating of 5.7/6.4/ L/100KM (city/highway).
Learn more: Meet the 2025 Toyota RAV4
Toyota Certified Used Vehicles
What are the benefits of buying a used vehicle at West Edmonton Mall Toyota? All of our Toyota Certified Used Vehicles go through a rigorous 160-point quality inspection and a range of other benefits.
- 6-month (or 10,000km) Powertrain and Roadside Assistance Coverage
- 7-day (or 1,500km) Exchange Program
- Extensive mechanical and appearance reconditioning by our technicians
- Complimentary first oil and filter change
- Complimentary tank of gas to get you started!
Making the Right Choice for You
The decision between new vs used cars ultimately depends on your individual circumstances, including budget, driving habits, and long-term vehicle plans. New vehicles offer the latest technology, full warranty coverage, and predictable costs, so they’re ideal for buyers who value peace of mind and plan to keep their vehicles for many years.
Tacoma TRD Off-Road Premium shown in Terra and Tacoma Hybrid Trailhunter shown in Oxide Bronze
Used vehicles provide immediate value and lower monthly payments, appealing to budget-conscious buyers or those who prefer to change vehicles more frequently. The key is calculating the total cost of ownership, including depreciation, financing, insurance, and maintenance costs over your planned ownership period.
Explore Vehicles at West Edmonton Mall Toyota
Ready to discover your dream vehicle?
Visit West Edmonton Mall Toyota to explore our complete inventory of new 2025 models, including the Land Cruiser and RAV4, alongside our carefully inspected used vehicle selection.
Our finance team can help you compare costs and find the perfect vehicle solution that fits your budget and driving needs. Schedule a test drive today and experience the Toyota difference firsthand.
Get pre-qualified for financing HERE.
Interested in used cars?
Read: Shop Used Cars in Edmonton