Whether to buy a new car or used car is one of the first purchasing decisions you will need to make. A new car is bought directly from a car dealership
and has not been previously registered, while a used or second hand car had at least one previous owner. Here are a number of advantages and disadvantages for buying both new and used cars.
Buying a new car
Advantages of buying a new car
Disadvantages of buying a new car
- Knowing that you are the first owner of the car creates peace of mind.
- If the buyer intends on keeping the car for an extended period of time, a new car will generally serve them better.
- When buying a new car, you will receive a full and comprehensive manufacturer warranty and often a full service plan capped with a mileage/date record.
- A new car will generally require less maintenance than a used car for the first few years.
- You often have the choice to customize your new car with various options and luxury features, as well as specifying the exterior paint colour you would like the car to be in.
- New cars come with the latest technology and features.
- A new car is immediately worth less than what you paid for it as depreciation kicks in instantly.
- Optional features will add to the price of the car.
- New cars can potentially come with added CO2 tax and sales VAT.
- New cars are more expensive.
- Dealerships will only sell the latest model of a particular car.
Buying a used car
Advantages of buying a used car
Disadvantages of buying a used car
- Buying a used car will be significantly cheaper as the previous owner has absorbed the brunt of the depreciation cycle on the car.
- No taxes are payable for the purchase.
- If you buy a used car, the reduced purchase price results in lower finance costs and lower insurance premiums.
- You could potentially still benefit from the balance of the motor plan and warranty which will be transferred with the car.
- You have a far wider choice of vehicle when buying a used car and can consider older models and a wider variety.
- Even though the seller is forced to declare any known defect to a potential buyer (Under the new consumer protection act), there is no guarantee that nothing will go wrong at a later stage.
- Any problems with the used car will result in additional repair and maintenance costs if the car is out of warranty and its service plan has expired.
- The buyer cannot add optional extras and safety features to the car.
- The buyer must select from the used cars for sale and cannot be too selective on certain features like colour, year etc.
Buying a new car gives the buyer more choice, as well as peace of mind and the feel-good factor of owning something new. However, the money saved when buying a used car for sale
can often out-weigh these benefits and will work out better in the long run if you find the right used car for you.
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