When buying a new car, you’re inundated with so many brands, makes, models, and features to choose from. But before you start filtering your options, you need to decide on one key aspect—will you be buying a new car or a used one?
Each option has its own pros and cons. It all depends on what you want out of your car purchase. To help you decide, we’ve listed the benefits of buying a new and used car. Read on to figure out what type of car suits your needs best.
Reasons you should buy a new car
A lot of car buyers opt to buy brand new even though it’s much more expensive compared to a used vehicle. But is buying a new car worth it? Here are a few advantages of buying a new car:
New cars are in top condition
Buying a brand-new car means getting a vehicle in the best condition possible. And they have their warranties and guarantees still intact. The vehicle is fresh from the factory line with all its original nuts and bolts. The car’s history is completely clean, so all the mechanisms and features work as they’re supposed to.
With used cars, its condition heavily relies on how well the previous owner has taken care of it. When buying a brand-new vehicle, you don’t have to worry about wear and tear, previous accidents, suspicious smells, or weird quirks.
New cars have the latest technologies and safety features
One of the best things about buying a new car is getting the latest technology. The latest makes and models will likely have improved features from previous iterations. This includes upgraded safety features that may not be present in old makes and models.
Because new cars have the latest technologies and safety features, you don’t need to add extra gadgets. This is not only convenient but could save you money too.
New cars have lower running costs
Ongoing costs for new cars are less compared to used cars. This is because new cars often have lower insurance costs. Maintenance costs for new cars are typically less, as well. Because the car has no previous owners, there are typically no old issues or general wear and tear that need to be taken care of.
New cars are relatively easier to purchase
Buying a new car is a straightforward process. Once you’ve decided on the car you want to buy, all you need to do is go to a reputable dealership and buy it. It’s quick and easy. You could get your car right away as long as you have your financing ready.
Buying a used car isn’t as simple. With used car purchases, you need to get a car inspection, check the seller’s background, and investigate the vehicle’s history. You must do all of this to ensure the used car isn’t a lemon.
New cars can get you better financing options
Depending on your lender, some loans also offer better terms and rates for new car finance. In some cases, finance for new car purchases is also easier to obtain. New cars are typically more valuable compared to used cars because they haven’t hit their peak depreciation rate yet.
Reasons you should buy a used car
Buying a used car may be the more practical option for a lot of car buyers. Here are some advantages of buying a used car:
Used cars are cheaper
For car buyers, the biggest draw of buying a used car is the significantly lower price tag. If you’re buying a car on a limited budget, you’ll have more options when you look at the used car market. You could also upgrade to a nicer model of a used car since it’s much cheaper compared to buying brand new.
Used cars are slower to depreciate
When you buy a used car, it’s already hit its steepest depreciation bump as most cars decline in value. New cars lose 20% to 40% of their original value within the first year. It then continues to depreciate to 60% in the first five years.
For example, if you buy a used car that’s only one year old, you’ll only be paying a fraction of the original cost. You don’t have to worry about the car losing value as soon as it leaves the dealership lot.
Used cars don’t have waitlists
A great thing about buying a used car is that what you see is what you get. Most of the adverts and dealerships offering a used car for sale have it available on hand. The car you’re test-driving and looking over is the one you’ll go home with. You don’t have to sit around and wait for a car to be back in supply, unlike some new models out there.
Used car markets have more variety
Used cars are limited to the latest model rollouts. If you have exacting features or specifications in mind, it could be a good idea to look at used car markets or dealerships instead of hoping for a new model to come out.
Buying a new or used car? CarLoans.com.au can help!
Whether you’re buying new or used, CarLoans.com.au offers a range of low rate car loans for you to choose from. Get in touch with us today by calling 1300 889 669. You can also request a quote online!