Should you buy a new or used car?
One of the questions we get asked here at The Car Brokers is – Should I buy a new or used car? Here’s some information to help you decide.
Of course, the first thing to consider is the budget for your car purchase. If your budget is $6,000 – well, you have no choice but to look for a used car. But if your budget is a little over $20,000 you could consider a brand-new car, say a Kia Rio or Toyota Yaris.
For that same money though you could buy a 2 or 3 year-old used car that is either larger or has more features, or both.
Buying used though has more risk, you can’t be sure of how well a car has been looked after, and there is a possible cost to that risk from additional maintenance or repair costs. Here’s how we summarise the reasons for buying new or used.
Why buy new?
Driving a new car off the dealer’s lot is fun and some people just don’t want a used car. They want new, they want to choose the exact colour and specification of the car. Some other reasons why you’d want to buy new include:
You will get the latest model. Some people get a lot of pleasure from owning a new car that is the latest model when they purchase it.
Manufacturer Warranty. The manufacturer provides a warranty for at least 3 years, and some warranties are longer. That means, if something goes wrong with the car, it’s the responsibility of the dealer and manufacturer to repair it.
Reliability. If anything goes wrong with your car while its under warranty the dealer will fix it for free. As your car exits the warranty period you know its history and how well it’s been looked after – if you’ve looked after it well, that reduces the risk that you will face significant repair bills down the track.
Reduced maintenance expense. Because everything is new your car won’t need maintenance for the first several thousand kilometres, and then only basic serving is required. Some manufacturers also pay for servicing for say the first 3 years – although it is becoming more common – it is still the exception rather than the rule.
Safety. Safety innovations are being implemented frequently, there is a relentless trend of safety improvements. It’s comforting to know you have the latest safety technology in your car.
Economy. Engine technology is also improving regularly, and this means fuel economy is also improving. Buying new should get you the latest economy technology.
Sometimes you can get a great deal. If you know the market you can sometimes get great deals on a new car (we can get a great deal for you) – which can make the purchase price quite close to a near-new car.
Why buy used?
If you’re open to the idea, there’s lots of good reasons to buy used, these include:
Used is cheaper. The biggest reason for buying a used car is - they are less expensive and therefore more affordable.
Someone else has taken a lot of the depreciation. Used cars are cheaper because cars depreciate in value as they get older. Most depreciation occurs in the first few years. By buying used you can save a lot of money, and for most of us, saving money makes sense.
Still probably reliable. If you buy a car that is only a few year’s old you are still likely to be buying a very reliable car, particularly if you go with a proven brand. Most cars that are only a few years old, and many that are older, are very reliable.
Maintenance costs can still be reasonable. As used cars, particularly those that are only a few years old are still reliable, maintenance costs can still be reasonable. While used don’t usually carry the same warranties as new ones, the original factory warranty on a new car is transferable to a second owner if it’s within the warranty period. If you are concerned about reliability you can purchase a used car warranty (use us, we're cheaper).
Safety and economy. By buying used you could get a model with better features than the same model you could buy new for the same amount. That means, particularly if you buying a near new used car, you could get similar or “near to” the same safety and economy as a new car.
Ultimately, the decision to buy new or used comes down to what you can afford, the emotional value you get from of driving a new vehicle, and what gives you peace of mind. The thing to remember is – if you want the best deal for the least effort on a new or used car, contact us at The Car Brokers.
Whether to buy new or used is one part of your car purchase decision, for more information on choosing the right car for you check out this blog How to choose the right car for you. — The Car Brokers