Many people who are planning to purchase another vehicle find themselves wondering whether they should opt for a new or used vehicle. While getting a brand-new vehicle is a real luxury, not everyone is able to choose this option for financial reasons. Even those who can afford a brand-new vehicle are often still unsure whether they should do this or go for a used vehicle, and there are pros and cons to consider in both cases.
In order to make the right choice with regard to buying a new or used vehicle, it is important to weigh up the pros and cons as well as take your finances into consideration. You should never rush into a decision with something as important as this – in both cases, it is a big financial outlay if you are looking for a vehicle that is in excellent condition. In this article, we will look at some of the pros and cons of both brand-new and used cars.
Ultimately, it’s a personal decision and everyone’s circumstances and car needs are different. Having a clear picture of the pros and cons of buying a new or used car will keep the emotion out of the decision and enable you to make the right rational decision for your circumstances and budget.
Pros and Cons of Brand-New Vehicles
Buying a brand-new vehicle is a wonderful experience, as you can enjoy being the very first owner and you get the peace of mind that comes with having a vehicle that is hot off the production line. So, let’s take a look at the pros and cons of opting for a new vehicle:
- You are the first owner
- There are unlikely to be any issues or problems
- A great choice of vehicles
- You can specify colours and options
- Latest safety features and technology
- Comes with a range of perks-higher fuel efficiency
- Modern features and high specifications
- Finance available from dealerships
- Mechanical reliability as it comes with a warranty
- Comes with Capped Price Servicing
- No high kilometres to worry about
- More expensive to buy brand-new
- New models may have limited discounting due to demand
- Dealer Delivery charges
- May include Luxury Car Taxes for more expensive cars
- You have to deal with depreciation with up to 40% loss in 3 years
- Insurance can be more expensive
- Extended warranty may restrict where you service and frequency
Pros and Cons of Used Vehicles
There are also pros and cons that come with buying a used vehicle, and whether you buy a used car from a dealership or a private seller, it is important to keep these in mind. Some of the pros and cons are:
- Cheaper to purchase than brand-new
- You can step up to a better model
- Finance available from dealerships
- You don’t have to deal with depreciation
- Insurance may be cheaper for older vehicles
- Buy from dealerships or private sellers
- Carry out checks on the vehicle online
- Some great deals available
- You are not the first owner
- Risks of previous owners usage, driving terrains & driving style
- Risks of accident history and poor repairs and maintenance
- Risk of purchasing Economic Repairable Write-off
- Risk of dealing with sellers- Integrity/Honesty issues
- Repairs & parts for older cars more difficult
- Less choice of colours and options
- Older cars less fuel efficient
- Need to check kilometre usage and service history
- Possibility of problems and issues
- Little or no warranty with older cars
- Need to do more research before you buy
Raising the Finance
So, as you can see there are pros and cons with both brand-new and used vehicles. With both options, one of the things you need to consider is how you will raise the finance you need. If you buy from a dealership, you may be able to get finance based on your financial status and credit score. If not, you may need to look at a bank loan or other form of finance to pay for the vehicle.
If you already have a vehicle you need to sell on, this can give you some extra cash toward your new vehicle. Some people automatically trade-in their old car when getting a new one. However, make sure you check how much you can get for it by selling it yourself in the private market before you do this, as it is likely you will be financially better off and have a lower changeover cost rather than trading it into a dealership.
It does take more effort and time but the changeover cost will be less. If you’re not comfortable doing it yourself or do not have the time or expertise you can alternatively engage a third party provider to do so on your behalf.
Get Advice from Our Experts
If you need advice about whether to choose a new or used car or sell your car on your behalf get in touch with the team at My Next Car Buying Advocacy. Our expert team and car buying and selling advocacy services can help provide you with valuable advice and support to help you make the right decision.