When is it Better to Buy New vs. Used Cars?

  • Posted 19 May
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When is it Better to Buy New vs. Used Cars?

Whether your old car is having problems or you are tired of your current vehicle and want a change, now might be a great time to buy a new car. But should you buy new or look at a late model used car?

To some buyers this is a decision based on personal preference and finding a vehicle they really like. For others, budget is the primary concern and they want to consider the best value for their money. Here are some of the factors to consider when debating used vs. new vehicles.

Purchasing budget

Buying a car is a large financial commitment and for many buyers budget is their number one concern. You’ve undoubtedly heard that new cars depreciate quickly over the first year or two of use, making a late model used car a smart financial choice.

You can find a very similar vehicle with more features at a lower price if you purchase a two- or three-year-old model instead of this year’s new model. If price is the only consideration, a used car will always be less costly than a new one.

Reliability and safety

Of course there are deciding factors other than budget to consider. Five-year warrantees are pretty standard on today’s new vehicles, and many buyers are attracted to the idea of no hassle ownership. They like knowing that if anything goes wrong, the dealer will take care of everything at no extra cost.

In contrast, buying a used car is somewhat risky, especially for older vehicles with higher mileage. You have to hope that previous owners did the required maintenance and took good care of the car. If not, you may be stuck with a car that is less than reliable. Older vehicles can also be less efficient than a new car. As parts age, they are more likely to break down and may use more oil and fuel.

Technology improvements

Technology is always improving and this year’s model will have the best features. The latest safety features include rear mount radar to help drivers back up safely and night vision technology with the ability to detect pedestrians. From back up cameras to smart phone integration, buying a new car will get you the latest in safety and convenience.

Buyer choice

Vehicle choice is an important factor for some buyers, and the reasoning is sound. If you are going to pay a lot of money for something you’ll use everyday, it makes sense to get the car you really want. By purchasing new, you can order the exact colour, features, and extras that you most want.

Whether you decide on a new vehicle or a more budget-conscious used vehicle, Australian Credit and Finance can help with your car loan needs. Contact us for friendly financing solutions.

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