One of the most common questions in the automotive industry from motorists is whether it is better to buy a used or brand new car. This will depend entirely on your own personal preference and circumstances, but it can be relatively easy to identify which method is best by outlining the benefits and drawbacks of each:
The obvious benefits of buying new are that you are the vehicle’s first owner and it will be an automobile with all the latest technology and equipment. This means that there is no wear and tear, no history to be aware of and no mileage. In addition to this, you also benefit from the cost of repairs being covered by the manufacturer’s warranty.
The major drawback with buying a new car is depreciation – it begins to lose value as soon as you drive off the forecourt and this can be as much as 35% after just one year and 50% after three. The other main drawback is the fact that the cost of a new car is much more than that of a used or nearly new vehicle. Although there are finance deals available, these will cost even more in the long run when you factor in interest.
Buying used is much cheaper than buying a new car and the market is gigantic, so you should be able to find what you are looking for without too much difficulty. You can also sidestep the biggest depreciation hit by buying a car that is at least three years old (this is important if you plan to re-sell down the line). On top of this, your money goes further when you buy used in that you could buy a desirable used model but would have to spend a lot more on a not so desirable brand new car.
Used car scams are a huge problem in the market and the vehicle could also be harbouring a hidden secret from its past. The best way to avoid this is to get a vehicle history check carried out. It also may not be covered by the manufacturer’s warranty, so you will need to take out a used car warranty for coverage and peace of mind.
Overall, it will come down to your own personal circumstances and preference. It is important to be aware of the pros and cons of both methods so that you can make a smart decision and find the right vehicle for your particular needs.
Founder Dinis Guarda
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