You’re probably used to buying a new luxury car with a lot of bells and whistles and a pretty big price tag.
Now it’s time to buy a second one with a little more of your own money.
But how much would you be willing to spend to do so?
The Globe and Mail spoke with people with a broad range of incomes and lifestyles who have been considering buying a second-hand car.
The question was posed by the Globe’s consumer-focused news outlet, which also asked a number of questions about buying a car.
What’s a second, third or fourth car?
What kind of car do you want?
And are you willing to pay a bit more than a first car for it?
To get to the bottom of it, the Globe looked at data from more than 4,500 Canadians and asked them what they’d like to buy next.
The results surprised us.
More than half the respondents — 54 per cent — would be willing buy a car with more than $100,000 in cash, compared with 36 per cent for a second or third car.
The numbers also showed that people who live in Toronto and are well off — with incomes of $80,000 or more — are more likely to say they would be happy to pay more than their first car’s asking price.
Why buy a brand-new car?
As the Globe points out, many people have come to rely on their existing car for transportation.
But a new vehicle doesn’t offer the same level of luxury.
The cost of a new sedan or a new SUV is comparable to a new or used car.
And even if you’re willing to buy more, it might be more expensive to do it with the second car than it is to do that with a first.
We’re all familiar with the story of the guy who bought a car for $20,000.
But is the same true for a $100K car?
It’s possible to get by with a second model, but it’s harder to do if you live in a big city and have a lot to lose.
I don’t want to buy another car, but what would I really pay for a new one?
The Globe’s survey of Canadians also found that a second vehicle is a good deal if you are willing to put down some cash.
Almost a quarter of respondents said they would spend $150,000 to $200,000 on a vehicle, and another 25 per cent said they’d spend $300,000 and $500,000, respectively.
If you’re not willing to sacrifice money, you can also look to a higher-end model.
Nearly two-thirds of respondents who have no plans to buy the second vehicle said they wouldn’t be willing or able to pay $500 or more for it.
Will the extra cash make a difference?
The answer might depend on how you define luxury.
A new car can be a big expense, and not everyone can afford to buy one, even if they have the cash.
For those with modest incomes, a new model might be a better deal.
And if you can afford it, you might want to consider buying a first- or second-gen car, said Amanda Miller, executive director of the Car Owners Association of Canada.
“But for those who don’t have the means to buy and maintain a second luxury car, then you might not be able to justify buying a luxury car,” she said.
Read more about: