Brand New vs Used Car: factors you need to consider
Purchasing a car is one of the most significant life decisions and investments anyone will make.
While there are many cars available to choose from, there is so much more to consider when deciding than just the make and model of the vehicle – like choosing between a brand-new car or a second-hand vehicle.
If you’re undecided, we’ve laid out a few factors you need to consider to help you decide which of the two options works best for your needs.
4 things you need to consider when buying a new car or used car
Whether to get a new or used car is an age-old debate.
People will have varying opinions on which choice is the right one – but we believe it’s important to lay everything out so you can make the best choice for your unique situation.
Here are 4 factors to consider before you make your final car purchase decision:
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Reliability
New car
There is no doubt that buying a new car comes with a solid dose of peace of mind. A new car will be (typically) more reliable and less likely to break down or need repairs. And if anything does go wrong, your new car warranty (usually three to five years) will have you covered.
Most new cars come with a certain warranty based either on total kilometres or for at least three to five years. If you plan on selling the car within the warranty period, it usually passes onto the new owner which can be a handy bonus to help you sell your car faster.
Used car
The word “used” in the term “used cars” says it all – buying one of these means you are investing in a car that has been driven by someone else for a period of time. Simply driving a car around will lower that vehicle’s overall condition, which means it will have a shorter lifespan by the time you purchase it. Not to mention, there is no way of knowing how well or poorly a car has been treated by the previous owners. -
Price
New car
Buying a new car is more difficult on the wallet. If you’re using an auto loan to finance the purchase, then you’ll most likely borrow more than you would with a used car and end up paying more interest over time.
However, it’s important to remember that since the car has newer parts, this is also beneficial to your long-term costs as you won’t have to go in for checks and part replacement as often as you would with a used alternative. Running costs are just as important to consider when buying a car – and if you buy new, these will generally be less.
Used car
Used cars of up to three years old can hold value extremely well. On the other hand, cars over five years old generally offer much cheaper purchase prices. It’s also important to note that certain brands are depreciation monsters, meaning you can pick a car up a relatively new car cheaply. There’s also greater bartering potential, especially with a private sale. -
Waiting time
New car
If you’re buying a new car, you might have to wait weeks or even months until you’re sitting behind the driver’s seat.
If it has to be ordered from the factory and delivered from overseas, shipping times can delay the arrival of your highly anticipated purchase. For some buyers, this simply isn’t an option, especially if their current vehicle has broken and they need to get back on the road quickly.
Used car
Almost any used car listed for sale will be available, right now. A swift morning phone call to the seller could have you in new wheels by the afternoon.
Of course, this ignores the lengthy search efforts to find a perfect vehicle for you, but at least once you have decided you’re unlikely to wait 12 months for the seller to supply the vehicle. -
Depreciation
New car
Car depreciation is defined by the drop in a car’s value over time – and it occurs as soon as you purchase a vehicle and begin driving it on the road. This value decrease is quite rapid, with most cars losing 15% or more off their car’s value as soon as it’s driven out of the dealership, and up to 30% by the end of the first year.
Used car
Cars lose value with each passing month and kilometre, but the steepest decline happens right away as soon as the keys change hands. However, with a used car, there’s no depreciation the second you roll off the lot.
There’s also less mental depreciation, and no need to worry about the first car park ding or rock chip in the paint because chances are the car’s previous owner or owners took care of those for you! That said, there may be some mental anguish when it comes to less obvious damage about how well the car’s engine was treated.
The important thing to remember is that buying a car is usually an expensive journey regardless of which option you’ll choose. Ultimately, after everything is considered, it comes down to your personal preference and unique needs.
Ready to buy a new car or a used car?
Whichever you decide to choose, it helps to have guidance from car-buying experts who can find you the best deals and make the experience seamless as you choose your dream car.
If you find that you still have general questions about your car financing options, our team at Private Fleet will be happy to answer your concerns and help you find the best deals for your car purchase. Simply reach out to us and we can have a chat about your options, regarding buying a new car versus a used car.
Make the most out of your car purchase with Private Fleet.
Private Fleet empowers you to get all the fleet benefits as a private buyer.
Backed by decades of industry experience, fleet buying power and a network of car dealers across Australia, we are here to make sure that buying a new or used car will be as straightforward as possible for you.
Buying a new car is a memorable experience – let us make it hassle-free, too.
Reach out to us today for a seamless and easy car-buying experience.
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