Should you buy a car new or used?
For most of us, buying a car is one of the more expensive choices we make in our lives. You’ll pay more for a new car than a used one, but does the maths make sense over the long term? With manufacturing hangovers from COVID pushing both new and used car prices higher than ever, it’s important to understand the facts and make a choice that’s right for you.
The argument for buying new
One of the great benefits to buying new is that you are the first person to own that car. Previous ownership can come with nasty surprises. The previous owner’s driving style, prior accidents, or flood damage can all be concealed, only to cause expensive or even dangerous issues down the line.
You might also want to consider a new car because you get far more of a say in how you want your car to be. From the colour to customisable internal features, you get to pick the things that are going to be best for you.
The argument for buying used
In previous years, the main argument for buying a used car would have been the price, but that is no longer as true as it once was. Used cars are still cheaper than buying new, but the savings are less stark because of the changing demand for cars. You can still get a good deal for a used car, but it’s important to do your research and understand the price you are paying, compared with the new price.
The one way you can save majorly on a used car is with insurance. It doesn’t cost as much to replace a used car as it does a new car. This can be particularly impactful if you are a driver under 25 or on your provisional licence. Your premiums will be higher if you fall into these categories, so you can bring them back down by lowering the insurance value of your car.
You may, depending on the age, still be able to get benefits from the car’s warranty. If a car has a 5-year warranty, and you buy it after 3 years, you can access the warranty and the perks for the remaining 2 years. If you buy a more recently manufactured car, you will also be likely to have fewer issues with reliability.
Another important consideration is the value of your car over time. You might have heard the saying that your car loses value as soon as you drive it off the lot, and you can use this truth to your advantage if you’re thinking of buying a used car. Your used car will still lose value over time, but the rate of depreciation is lower. You should never think of your car as a money-making asset of course, but you are likely to lose less money when you choose to sell your used car.
If you are looking for help figuring out what car is right for you, chat with the team at Pearson Automotive. We are your local mechanic Paddington, and we can help with everything from advice, servicing, and even wheel alignment Brisbane.
Posted on May 15, 2022.