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Buying a New vs. Used Car: Advantages And Disadvantages of Each Option

Buying a New vs. Used Car: Advantages And Disadvantages of Each Option

Buying a New vs. Used Car: Advantages And Disadvantages of Each Option

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A car is a major purchase, and if you are deciding to buy one, you might be asking yourself, Should I buy a new or used car?
The reality is that there are positive and negative points for both options. 

Check out our list of advantages and disadvantages to help you make your big decision. 

Pros of buying a new car

1. A new car warranty gives peace of mind.

When you buy a new car, your mind comes with good medication for peace of mind. A new car will be more reliable and less likely to break down or need repairs. And if anything does go wrong, your new car warranty (usually 3 to 5 years) will have you covered.

Almost all cars today come with some amount of warranty based either on total kilometers or for at least 3 to 5 years. 

If you decide to sell the car within the warranty period, it usually passes onto the new owner, which can guide you to sell your car faster. 

2. You’re free to choose exactly what car you want.

One of the largest benefits of buying a new car is the opportunity to select exactly what you want. Everything, from the make of the model to the selection of color and specification level, is up to you and fits in your pocket. 

3. Choose from the latest availability of features too.

New cars come with the latest features in safety concerns and fuel efficiency, making them safer to drive and budget-friendly to run.

A new car will be fitted with the make and model that are the most trending technological features, so if driving with all the trending gadgets is necessary to you, there is no running history of a new vehicle.

You can also customize your car to your exact liking, including which accessories and extras you’d like to add.

4. More likely to have lower running costs

If we come directly to the factory, there will be no record of hidden problems or old owners having made their mark on the vehicle.

It is seen that insurance on a new car might also be cheaper than on a used car due to those latest safety features. It’s beneficial to check the price margin with your insurer so you can determine it for your financial costs and decision-making.

5. A cheaper car finance rate 

For car loan lenders, it’s easier to find the value of a new car compared to a used car. Conclusion: There are usually stronger financing options for new cars.

So, if you’re looking to get a car loan to support buying your next car, be confident that you take into account the total cost of the monthly payments under different rates, as it could impact which one ends up being the cheaper option over time. 

By now, you might be thinking, Why on earth wouldn’t I buy a new car? Before you get too excited, check out the cons below.

Cons of buying a new car

1. Depreciation impacts

Aside from the expensive upfront cost, new cars depreciate in value the moment you drive them out of the dealership, with some estimates at a whopping 20 percent. After the first few years, the value of your car could drop by half or even two-thirds.

If money is tight or you’re trying to save, the disadvantages of depreciation alone could be enough of a reason to buy a used car instead, depending on how long you’re planning to keep it.

If you like to upgrade your vehicle every few years or so, buying a used car just a few years old could save you a load of money. However, if you’re planning on keeping your car for a long time, you’re more likely to get value for your money by purchasing a new car.

2. Potentially higher maintenance costs once the warranty expires.

Once your warranty runs out, your new car and all its latest parts and technological features could cost more to repair than an older used car.

3. The availability of stock could mean a longer wait time to drive away.

If you’re buying a new car, you might have to wait weeks or even months until you’re sitting behind the driver’s seat.

If it has to be ordered from the factory and delivered from overseas, shipping times can delay the arrival of your highly anticipated purchase.

For some buyers, this simply isn’t an option, especially if their current vehicle has broken and they need to get back on the road quickly.

Pros of buying a used car

1. Used cars are a much cheaper option.

As a more budget-friendly option, buying a used car could save you thousands and thousands of dollars. If you’ve done your search and found a car with low kilometers, from 15,000km to 20,000km a year, that’s a decent gssuide, that’s had all of its services, that test-drives well, and that meets to our expectations and is able to crack the inspection.

2. Ignore most of the depreciation costs.

One of the biggest downsides of buying a new car is the impact of depreciation as soon as you drive it off the lot.

When buying a used car, most of that depreciation will have already occurred. By buying used and ignoring depreciation, you could also afford to buy a recent prestige model with all the added extras and features for the same price as a new basic model.

3. Better for the environment

You can also give yourself confidence in supporting the environment by buying a used car rather than a new one. Although new cars often use less fuel, the amount of pollution generated during the manufacturing process is only offset by the better fuel economy if the car is used for longer.

If everyone upgraded their car every couple of years, it wouldn’t be doing the environment any favors.

Cons of buying a used car

1. Likely to have higher ongoing costs

Buying a used car comes with the threat that it might require repairs, sometimes early or within a few months of purchase.

It’s also more likely to utilize more time at the workshop, so if you are unable to afford to be without it for a few days here and there throughout the year, buying new might be a decent option.

Services such as repairs that require to be made on used cars as the kilometers start to increase, so be attentive to the costs. Insurance could also be more luxurious on your used car, so be sure to compare prices and factor these into your costs.

2. You are unable to get a complete service history.

Another disadvantage of buying a used car is finding flaws or faults you might’ve missed before you purchased it.

While you can often get a vehicle’s old record for a used car, if one isn’t available, there’s always a risk that you’re buying a car with unknown errors and defects. 

Windows that don’t work properly, seats that get stuck when you try to move them back and forth, sun visors that droop, ac vents that don’t hold on position, compartments that don’t open or close perfectly, stains and scratches you missed—the list is endless when buying a used car. 

3. Fewer options are available for buyers.

Unlike new cars, where dealerships can offer a wide range of makes, models, and specifications, there are likely to be fewer options on the used car market. Due to the limitations that apply to supply, buyers may have to sacrifice certain factors, such as color or different available features.

What’s right for your circumstances?

It matters when you’re buying a new car or a second-hand car; the mandatory thing to remember is that everyone is unique and different.

Everyone has a different mindset to think and has different views, so don’t worry if you’re making a different choice than well-meaning family members, friends, or the local mechanic offering advice.

At the end of the day, the right decision is the one that is right for you.

Looking for car finance?

If you’re planning to buy a car with finance, go for low-rate car loans online today.

Alternatively, speak with the car loan specialists today to find out what would be good for you.

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