Used vs New: Tips for First-time Car Buyers

Buying a car is a significant financial commitment. Before you even decide which model you’re going for, you have to figure out whether you’re buying a new or used car. But that’s not as easy as it sounds. There are pros and cons to consider, whether you buy new or pre-owned.

New Car

Pros

• It’s brand new:  You’re the first owner, which means you don’t have to worry about how the car was treated before you got your hands on it.
• Less maintenance: Because your car is still fresh out of the box, it’s less likely to need any work done on it any time soon. And if something goes wrong with your vehicle, your service or warranty plan, if you have one, will most likely cover the costs.
• Better features: If you buy a new car, chances are it’s fitted with the latest safety features as well as fuel efficient technology.

Cons

• More expensive:  New cars put a massive dent in your wallet. The used version of your car will cost far less than the new one, even if the secondhand car’s mileage is very low.
• More debt: Not many people can afford to buy a new car with cash, so they go the financed route. The average finance agreement lasts for five years, which means a substantial amount of money will be leaving your bank account for half a decade. Ouch!

Used Car

Pros

• More leeway for negotiation: Dealerships seldom offer discounts for financed cars. If you have enough money to buy a secondhand car cash, most salespeople will give you a reasonable price cut.
• Incomplete service plans: If a car was sold before the owner exhausted their service plan, some dealerships allow you to make use of the remainder.
• Almost as good as new: If you bought a late model with relatively low mileage, your wheels will practically look and drive as smoothly as a new car.

Cons

• Unknown reliability: Unless you have a full service history, there’s no way to be sure what you’re getting yourself into.
• Less legal protection: Many dealerships add a voetstoots (buyer’s risk) clause. If you buy a dud, there’s little you can do about it.
• Compromise: What you see is what you get with used cars. If you don’t like the colour, interior or body type, you’ll have to look elsewhere or take what you’re given.

Buying a car is serious business, so you want to make sure you’re getting the best value for your money. And whether it’s new or used, you’ll still need affordable car insurance. Fortunately, that’s the easy part. It’s actually as easy as getting an online insurance quote. Who knew something so important could be so simple?

Once you have the freedom of movement that comes with owning a car, all that’s left is to live your way.

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