When you're looking to get yourself a new car, you're usually faced with the decision between a new car or a quality used car. It can be a difficult decision as there are many pros and cons associated with each. Whether your budget is a little or a lot, the quality and type of car you can get for that money can differ significantly.
Related: How much do you need to earn in order to afford a new car?
Before you take that leap of faith, it's wise to sit down and weigh up all the options available to you. Some of the benefits of a new car may be appealing, but the cons could really ruin your ownership experience.
New Cars
Pros
- Specced to your personal taste: while some entry-level cars offer you limited options, spending a little more gets you into a car where you get to choose the options you want.
- Latest and greatest: in a new car, you will get the latest technology and driver assistance features. Safety systems generally improve every year and the newest cars often have the best kit.
- No worries: a new car will be backed by a manufacturer warranty and a service or maintenance plan. This can greatly reduce running costs and give you peace of mind.
- That new car smell: who doesn't love the smell of a new car? You get to be the first to experience this and that smell is all yours!
Cons
- Expensive: new cars are expensive, there's no doubt about that and unfortunately you will bear the brunt of the initial depreciation meaning that you will be stuck with the car for at least a few years before you can break even.
- Costly to run: while it may be backed by a warranty and service plan, insurance premiums are often higher on a new car.
- Delays: in the unlikely event that something does go wrong with your new car, you may have to wait for the new parts to be shipped into the country or made available.
Used cars
Pros
- Affordable: used cars have already depreciated which means that you could get into a better vehicle for the same money.
- Balances: if you select a car that is only a few years old, you may still benefit from the balance of the warranty and/or service/maintenance plan.
- Variety: you'll be able to get a wider variety of vehicles for your given budget. Go a few years older and cash in on that more luxurious vehicle.
- Holding value: because the first owner took the big, initial depreciation knock, your used car will retain more of its value for longer.
- Costs: the insurance premiums on a used car could very well be lower than that of a new car, depending on the make and model you choose.
Cons
- Costs: all the costs will be for your own pocket if there isn't a balance of the service/maintenance plan. You'll have to account for services and repairs.
- Unknown history: one never truly knows how the used vehicle you're buying was looked after, driven, or maintained. Service histories only tell a part of the story.
- Less tech: you may find yourself without some of the safety and convenience features that you may have wanted by going with an older car. Things like Bluetooth, Navigation, and driver assistance systems may not have been around when your car was made.
- WYSIWYG: "what you see is what you get." You don't get a say in the options fitted to the car and you will have to accept whatever combination the first owner selected at the time of ordering.
- Safety: in many cases, an older car won't have the latest safety systems and have a poorer crash rating. Keep in mind that not all new cars are 'safe' either. Always check and compare before choosing a car. With that said, sometimes a used car can offer better safety systems than a new car for the same money. This is particularly prominent in the entry-level new car sector.
