With the ever increasing demand for cars, auto dealerships are sprouting up everywhere. Statistics are scarce, but it’s estimated that the number of new and used car lots in Canada are close to thousands. A large bulk of these car lots is concentrated near big cities such as Toronto and Vancouver.
Car buyers may as well take advantage of getting their vehicles close to thriving cities. A recent study by car industry research and shopping site CarGurus.com reported that dealerships located near such cities have lower prices compared to those farther from metropolitan areas. Auto dealers within 50 miles (80 km) of the city center sold cars more than $300 cheaper (average) than the dealers outside the 50-mile radius. The study involved 50 major metro areas in the U.S.
Furthermore, CarGurus.com identified that dealerships had the cheapest rates in densely populated states like California and New York. In those places, car prices were a little over $500 less than the selling price of dealerships farther away from the hustle and bustle. In Canada’s case, Ontario and Quebec are most likely to follow this trend.
One possible explanation for this is the fact that city car dealers are very competitive. To attract as many clients as possible, they engage in a price war—constantly offering new and used cars Toronto car buyers are looking for at low prices. The big city may prove to be the more ideal location for car purchase now, but experts will tell you not to rule out rural dealerships just yet.
It’s still advisable to visit both urban and rural dealers when looking for used cars Toronto. The results of the study may have been largely in favor of big city dealers, but there were some outliers in Indiana and Arkansas who gave better deals than their urban counterparts. In the same way, rural and suburban car dealerships in Canada may just surprise you with their enticing offers.
For more information about the study, you can check out the details at AutoNews.com or get it straight from the source at CarGurus.com. Perhaps you will get an idea of the similarities and differences of the American and Canadian car industries. If you’re looking for more than online resources, visit a Toronto Mazda 3 dealer or any other dealer of any car of your choice to discuss your buying options.
Study Shows Buying Used Cars in the Big City May Be Cheaper