We are all unique in so many ways and some drivers prefer a car that has never been pre-owned, which they will take good care of for many years, while others choose a used vehicle, which is, of course, much cheaper. Whether new or used, people rarely pay cash these days, rather they work out an affordable monthly payment and finance the purchase, which makes sense. No one wants to spend all their savings on a car and finance is one option, which is usually low-interest.
Benefits of buying a new car
The benefits of buying a new vehicle include the following:
- No history – The vehicle may have been driven for 20-30 km during transportation and everything is perfect. The smell of the new leather interior, removing all the plastic protection layers to reveal a spotless interior, you can rest assured that the car is in perfect condition.
- Reliability – A brand new car is much less likely to breakdown and if reliability is high on your list, you might be thinking, ‘How can I sell my car in Brisbane quickly and visit a local dealership to test drive your favourite model?
- Prestige – There is a level of prestige when you drive a new car out of the showroom, which isn’t there with an old vehicle.
Downsides to buying a new car
The main disadvantage when buying a new car is the high level of depreciation; as soon as you drive the car away from the dealership forecourt, the value drops by 12-20%, which is a lot to lose. One popular strategy for Australian drivers is to buy a car that is 1-2 years old, use it for 12-18 months and resell it for a similar price. If you are wise with your choices, you can enjoy almost free motoring, as the depreciation is minimal. Click here for tips on replacing auto body parts.
Investing in a used car
It is no surprise that the majority of Australian car owners choose second-hand vehicles, as prices are affordable and there is less depreciation than with a new model. If you are looking for an ideal used car, start by searching the online auto listing platforms, which have search options to help you find specific cars easily.
Stay within your monthly budget
Whether you choose a new or used vehicle, it is important to stay within your monthly budget and don’t forget to factor in running costs, which can be considerable. Young drivers are usually interested in older cars with small engine capacity to keep the insurance premiums down, while older drivers change their cars every couple of years; it is up to you.
Used car warranty
If you buy a used car from a dealership, you will get a fair warranty, while buying from a private seller usually means ‘sold as seen’ with zero warranty. If you are not familiar with the inner workings of a car, it might be a good idea to take a mechanic with you when viewing cars.