Buying cars: should you buy new or used?

Buying cars
Buying cars

It’s the age-old debate – if you’re in the market for a car, is it better to buy fresh off the floor or something “pre-loved?” Some say it’s a matter of preference. Others say it’s a matter of cost. But what are all the factors you must consider when buying new or used? Used Cars for Sale Adelaide break it down so you can make a more informed decision.

Why you should buy new

There are many reasons you should buy new, and it’s not just become it comes with a new car smell! New cars have no driver history. That means it’s blemish free, everything under the hood is unused and the reliability factor is at the highest in the car’s lifecycle. They may cost less to maintain and keep fuelled up compared to older cars. Dealers guarantee everything works with a manufacturer’s warranty. If it doesn’t, you know exactly where to go to get things fixed. You also get choices. You can add extras, take off things you don’t need or things you just don’t want. New cars are also easier to finance, as they have lots of value and are low risks for lenders.

Buying cars

Buying cars

Reasons you shouldn’t

Here’s the big two reasons – upfront cost and depreciation. New cars are expensive, no matter which way you cut it. If you spend $30,000 on a new car, it loses $6,000 of its value on the way home. Even if you’ve paid a $3,000 deposit, the finance gap on the principal is $3,000. New cars are also notorious for high insurance premiums, due to their higher market value.

Why you should buy used

There’s one overarching rule to buying used, and that’s because it’s much cheaper than buying new. With so many used cars on the market, chances are you’ll find one that ticks every “want” and “need” box without worrying about depreciation. If you buy from a private seller, you could pick up an absolute bargain. Since the value is naturally lower, insurance premiums are too.

Buying used cars

Buying used cars

Reasons you shouldn’t

There’s an air of uncertainty around used cars, and that’s justified considering everything. Older cars might be in poor condition. This means more spent in maintenance, fuel, and repairs. You’ll need to do a lot of legwork, test-driving, “tyre-kicking” and logbook/personal property register scrutinising before settling on a “good deal.” Plus: the lower your car’s value, the harder it is to find finance.

The third option: certified used cars

Can you split the difference between a new car and a used car? You can, with a certified used car. A certified used car is a dealer-sold, factory refurbished ex-lease, ex-demo, ex-fleet or low mileage vehicle that comes with a manufacturer’s extended warranty. It’s guaranteed reliable compared to privately sold used cars and doesn’t depreciate sharply like a new car. Insurance premiums are lower. Finance is easier to find. It really is the best of both worlds!

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