Not maintenance, fuel or insurance, but depreciation is what reigns supreme as the single biggest expense associated with buying a new car.
The Canadian Black Book, a provider of automotive data and residual value forecasts, reports depreciation averaged 15.5 per cent annually in 2024, roughly the same as in 2023. It means that the average car bought in Canada is expected to lose around 15 per cent of its value within the first year.
AutoTrader data shows that in the first month of 2025, the average transaction price for a new car in Canada was $65,317, which means depreciation will cost the owner more than $10,000 in the first year.
We’ve heard endless clichés about cars losing value as soon as you drive them off the lot, and it’s basically true. Those considering a two or three-year-old car can use this to their advantage. While average depreciation hovers around the 15-per-cent mark, some vehicles fare worse.
In 2024, light trucks (SUVs and crossovers) had some of the lowest depreciation, averaging 14.6 per cent across all brands. Passenger cars came in at 18.4 per cent and luxury cars were near the bottom at 23 per cent. “Prestige” luxury cars (think Porsche, Bentley, Maserati) were at 32 per cent, the worst segment in the industry.
So, if you’ve been pining for a Bentley Bentayga, a three-year-old model can be bought for less than half of what it was when new. We’re still talking six-figure money here, so what does one look at to find cars that the average consumer can afford?
Sedans are a good place to start, as demand for them continues to sink. Entry-level luxury SUVs also lose value quickly and EV demand has softened, making some of them ripe for the picking at a considerable discount.
Here are five unreasonably good used car deals. Unreasonable because all these cars are excellent in their own categories, despite the discount.
2023-2024 BMW X3
The X3 is BMW’s best-selling vehicle and continues to gain in popularity as the appetite for compact luxury SUVs grows. The X3 was one of the first to come to market in 2003 and it followed the same formula as the company’s sport sedans with 50/50 weight distribution, nimble handling and powerful engines.
An all-new generation of X3 went on sale last year, which means previous-generation examples are likely to start showing up more frequently at dealers as they get traded in. A 2026 X3 30 xDrive starts at $63,178 before adding options.
AutoTrader lists nearly 50 2023-2024 examples within the Greater Toronto Area, with many starting at less than $40,000. A dealer is selling a 2024 accident-free X3 with 40,000 kilometres on it for $41,700 and there are many more like it. That represents a drop of more than $21,000 or 34 per cent over new. (If a link is no longer working, it is likely that the car has already sold).
2023 BMW X3Uwe Fischer/Courtesy of manufacturer
2023-2024 BMW 3 Series
The BMW 3 Series doesn’t get the same amount of attention it did 20 years ago when it was still the vehicle that buttered BMW’s bread. Many of those buyers have moved on to the X3, which offers more cargo capacity and increased ground clearance. None of this takes away from the fact that the 3 Series is still one of the best sedans ever made. It does just about everything well and weak demand for sedans means these are an excellent deal right now.
AutoTrader lists nearly 70 within the GTA, many starting at less than $40,000. Consider that a new 2026 3 Series has a starting price of $63,178, the same as a base X3. There’s a listing in St. Catharine’s Toronto for a 2023 330i xDrive with the optional M sport appearance package and 26,000 kilometres on the odometer for $39,000, 36 per cent less than a new base 330. Another Woodbridge area dealer was selling a2023 330 with 11,912 kilometres for $44,900. This was the proverbial “just been driven off the lot car,” and it comes with a BMW certified pre-owned inspection and warranty.
2023 BMW 3 SeriesFabian Kirchbauer/Courtesy of manufacturer
2023-2024 Hyundai Santa Fe
The Hyundai Santa Fe is a popular mid-size family SUV that has a tech-forward interior, refined ride, good fuel efficiency and lots of space for five passengers. It competes with the Honda Passport, VW Tiguan and Jeep Grand Cherokee. It was redesigned for the 2025 model year and, in typical Hyundai fashion, bore zero resemblance to the model it replaced. Whether it negatively affected the values of the old one is unclear, but there are some big discounts to be had here when buying used.
There are many low-mileage vehicles listed for sale online with lots of time left on their five-year, 100,000-kilometre factory warranties. A Toronto dealer is selling one with 43,000 kilometres for less than $30,000, a 34 per cent drop over buying new. A new one starts at $45,339.
2023 Hyundai Santa FeDREW PHILLIPS/Courtesy of manufacturer
2020-2023 Porsche Taycan 4S
A Porsche Taycan is quite easily one of the best EVs I’ve driven. Its combination of speed, handling, comfort and efficiency sets a high standard for the industry. The 2025 Taycan received a range of updates, including more power and improved tech. The base 4S version starts at $150,422 before browsing Porsche’s extensive options list. Hitting $200,000 is easy and fun (for a dreamer) on the Porsche configurator, and that’s before getting into any of the other body styles or powertrain options. Going used can save a great deal, especially if looking for pre-2024 cars.
Many come with a two-year unlimited mileage certified pre-owned warranty from Porsche, which includes a thorough pre-purchase inspection. There’s a 2020 Taycan 4S with 52,000 kilometres on it for sale at a Toronto dealership for $87,000. That’s more than 40 per cent less than new. A new Taycan Turbo retails for more than $220,000, but a dealer is selling a 2020 version with 20,000 kilometres for $105,000.
The 2022 Porsche Taycan GTS sits in the middle of the lineup, with 590 horsepower and acceleration to 100 kilometres an hour in 3.7 seconds.Jeremy Sinek/The Globe and Mail
2023-2024 Tesla Model 3
AutoTrader lists more than 100 Tesla Model 3s for sale in the GTA, starting as low as $24,000, an astonishingly low amount considering a 2025 Model 3 starts at more than $57,000. Similar to others on this list, the Model 3 was updated for 2025.
Even the more expensive Long Range all-wheel-drive models are selling for cheap. A dealer has one with 59,000 kilometres on it listed for $39,990. A new costs more than $65,000. Regardless of what you think of Tesla owner Elon Musk, The Model 3 is still an excellent EV with some of the best technology in the industry.
Tesla Model 3 vehicles are shown for sale at a Tesla facility in Long Beach, Calif., May 22, 2023.MIKE BLAKE/Reuters
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