Whether it’s via a novated lease or buying outright, purchasing a car is a big decision in any person’s life. They help you move around your area, get to - and possibly perform duties at - work, and more. There are many cars available for you to choose from, but more so than deciding the make and model of a car is the condition.
The main difference between buying a new car and buying a used car is the condition and location of the vehicle - buying new involves going to a manufacturer directly, while buying used means purchasing from a second hand dealer or private owner.
Whether to get a new or used car has been a debate for a long time. People 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 situation.
This article aims to do just that - providing you with the pros and cons of each option so you can choose between buying a new or used car. Read on to learn more and have all the information you need.
Pros of buying a new car
1. Enjoy the look and feel of a new car
This might seem like a simple and obvious point to some, but it is one of the biggest advantages of buying new vs used. A new car is just that - a brand new car. This means it goes straight to you from the manufacturer so you can enjoy the luxury of being the first to drive it.
You can enjoy that new car smell, the fresh interior, clean coat of paint, and all the other things that only come with getting a car fresh off the production line.
2. New cars have the latest features and lower running costs
Car manufacturers are always updating their models fairly frequently - often every year.
With each of these iterations, cars are fitted with the latest features - these range from fantastic new safety features such as parking and proximity sensors to interior technologies such as Apple CarPlay and Android Auto.
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 car. Running costs are just as important to consider when buying a car - and if you buy new, these will be less.
3. Buying a new car is often easier
Unlike used cars, which involve dealing with second hand owners and dealerships that require a lot of information and inspections from both parties, buying a new car is much easier by comparison.
Going to the manufacturer’s dealership means you can bypass most of the inspections and checks. On top of this, you are more likely to have a range of colour options available - plus you will get more peace of mind thanks to the manufacturer's warranty.
Cons of buying a new car
1. Buying a new car is expensive
As the “new” in the term “new car” implies, you can be sure that you will be paying a pretty penny for your vehicle if you go the new car route. The difference in price between a new and used car can differ based on the mileage and condition of the used car, the year of each model, and more.
2. Depreciation sets in quick
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.
This makes selling your car later on in its life harder on you, since you won’t get as much of a return on investment as you may have if you bought a used car.
CUSTOMER DISCUSSING WITH CAR DEALER AT DEALERSHIP
Pros of buying a used car
1. Save thousands with the right deal
Used cars will always be cheaper than new ones - the value of a car depreciates significantly not too long after its initial purchase from a manufacturer. However, the price of a used car may not always be accurate to its true value.
By doing plenty of research and being sure to inspect each vehicle you decide to look at as much as possible, you could potentially save thousands by getting a great deal on a car that isn’t too old and is in good condition. A good deal can be worth all the possible cons that come with used cars, but it takes dedication to find such a bargain.
2. Possible warranty extensions
While manufacturer’s warranties can be nearing - or at - the end of their time period, pre-owned car dealerships can be a saviour of sorts by providing a warranty extension.
These are added on to the existing manufacturer’s warranty, and allow used car buyers some peace of mind.
3. Save on car insurance
Different makes, models, and sizes of cars will always have different levels of insurance pricing - this also changes depending on the insurance company you decide on.
One way that you will benefit from buying a second hand car over a new car is that - due to the lower price of used cars - they will be able to find cheaper insurance cover for their vehicle.
Cons of buying a used car
1. Higher mileage and poorer condition
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.
2. More servicing with harder to find parts
Continuing on from the (likely) lower vehicle condition of a used car, buying used means your vehicle will likely need to be subject to higher and more frequent levels of maintenance.
This means getting your car serviced more often, and - when the need arises - it might be harder to acquire parts for your car depending on how old it is.
What about new vs. used car loans?
If you’re looking to enter a car loan instead of buying outright, some of the above points may not apply to your situation - however most of them still will. There are some differences that only factor in here, which are detailed below.
New car loans will benefit from typically lower interest rates - and even potential special sales events from dealerships - however they will usually have longer loan periods.
Used car loans instead enjoy involving typically smaller loan amounts and shorter loan periods than the ones seen with new cars straight from manufacturers.
New car vs. used car - which do you choose?
As you can see, there are plenty of varying factors to consider when deciding whether to buy a new or used car. Ultimately, after everything is considered, it comes down to personal preference on the buyers behalf.
Do you want the peace of mind and fresh luxury that comes from buying a brand new car straight from the manufacturer? Or do you want to search for a great deal and save on things like car insurance and buy used? Perform as much research as you can so that you can make the best choice for your situation.
Make novated leasing your next car easi
The team at Easi have 20 years of experience in the industry of car leasing - meaning we can use our knowledge to deliver effective business car solutions every time. Our wide range of vehicle lease options come under flexible contract terms ranging from utes, to large SUVs, to hatchbacks.
To find out more about how Easi can assist with your novated leasing or business car leasing needs, contact one of our staff today.
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