Buying a new car is exciting for anyone. But the biggest argument will always be is it worth buying a new car or getting a used one. There are pros and cons for each side, so don’t knock either option yet until you’ve read this!
Is it worth buying a new car?
It’s not as easy as saying yes or no to this question! There are several factors to consider when choosing which type of car to buy. As you might be constrained by budget or personal preference in the features of the car, it can leave you scratching your head. However, before you start car shopping, make sure you’re eligible for an auto loan! If you’re looking for how to get an auto loan, check out our guide here to be successful!
Pros and cons of buying a new car vs a used car
Comparing both types of vehicles side by side can show why you might consider either. Of course, it will largely boil down to how much money do you have to spend.
New cars win here – hands down. One of the perks of buying a brand new vehicle is the warranty that gives you a safety net for the initial 6 months – 1 year according to manufacturer specifications. Anything that goes wrong with the car (which is unlikely) is covered, like tire issues, engine problems or anything of the sort. Just take it back to the dealership and they’ll sort you out!
Used cars usually have no warranty since it’ll have run out by the time you’ve laid eyes on it.
New cars usually have a wider range of financing options. You can take out an auto loan with the dealership or a bank directly, and the terms are usually quite flexible according to how much deposit you can put down.
Used cars are given less attention, and the auto loans available are usually more rigid.
If you buy a new car, you can enjoy a better and wider range of insurance options. But there’s not really any way to avoid the issue – it’ll be more expensive than the insurance on a used car.
Because used cars are definitely cheaper, the cost to insure them will be lower. However, it’s worth bearing in mind that some insurers won’t give you a policy if your car is over 10 years old!
It’s a common trope that if you get a new car, it’ll be so much safer than a new car. And it makes sense since the car is unused, so it should have no prior wear and tear. And even if there are any issues, however minor or major, the warranty will have your back!
That’s not to say used cars are any less safe. Cars in today’s day and age require much less maintenance than before the turn of the millennium. And most cars can easily carry 100,000 miles and more! But it’s better to be safer than sorry to do your due diligence if you have your eye on a specific used car and conduct a thorough background check to see if it has any history of accidents or faults and whether the dealership has reported them.
A big catch of driving a new car is the plethora of cool tech that wasn’t available 10 years ago! Different ways of using Bluetooth, GPS tracking and other technology means it can be really fun to drive! You can even have your car turn on certain settings before you step in it with the touch of a button! Not to mention it can help with driving as the in-vehicle driving assistance is more sophisticated.
Unfortunately, you’ll miss out on older cars since tech innovations move rapidly – what was groundbreaking 5 years ago is considered obsolete nowadays! But this isn’t a big issue if you’re more concerned with the drive rather than the features since these are additional extras that aren’t essential.
One of the biggest turns off when asking is it worth buying a new car is the depreciation. First of all, new cars will cost more upfront regardless. But the depreciation values means you’ll lose up to 80% of the car’s initial value if you buy the same model that’s ten years old!
Here’s the breakdown if you are buying a Toyota Vios base model and its subsequent drop in prices.
- 2018: Php 611,000
- 2017: Php 548,000
- 2016: Php 450,000
- 2015: Php 435,000
- 2014: Php 350,000
- 2012: Php 260,000
- 2008: Php 220,000
If you buy a used car, you can also afford a luxury car since you’ll have more budget! Going down the used-car route is preferable if you’re conscious about the low cost-to-sale ratio. Because when you sell the car, you won’t lose as much compared to selling a vehicle that you bought brand new.
This might not cross everyone’s mind when they consider is it worth buying a new car. But just as the technology is a lot more advanced now more than ever, this directly results in cars that are cleaner and better to the environment. With climate change threatening to change the environment drastically, people might buy a new car because it is greener due to better fuel efficiency and cleaner output without sacrificing performance.
So when you’re wondering is it worth buying a new car, consider these points before you commit! Share with a friend who’s looking to buy a car!
Read more articles below: