New vs used cars: Which one should you buy?

There is no definite answer to this question, and the verdict will vary for different customers and their specific requirements. But, even though there are valid reasons to go either way, your budget may just end up having the final say in this matter.

Related: Here is a rundown of all the pros and cons of new- and used cars.

 

New cars

There’s something immensely satisfying in driving a brand-new car off the dealership floor. It usually begins with the fun of specifying the car to your own preferences, followed by a waiting period while your new steed is being assembled, to be capped-off by the actual collection of the car. 

This building of anticipation while your new car is being completed and/or delivered will only heighten the pleasure when you finally get behind the wheel, enjoying that new-car smell and the tight operation of every control. Add to that the peace of mind that comes with a fresh warranty and service/maintenance plan, and your first few months on the road will undoubtedly leave you feeling satisfied.

But then the car begins ageing and the new-car smell fades, and one day, you realise that your new car isn’t actually new anymore. The excitement of the purchasing process becomes a distant memory, but the reality of being signed into steep car instalments for the next few years remains ever present...

Used cars

Opting to shop in the used market offers little of that initial thrill you’ll experience while buying a new car, except for the fact that you’ll likewise be welcoming a new member to your household. It may be a car that you’ve always wanted, or it may be an upgrade from your old set of wheels, but it will likely always remain in the back of your mind that you’re driving something that used to belong to someone else.

But there’s another factor at play as well: Because you settled on a used car of the same value as the new one you also considered, the chances are that you are now driving something nicer, even though it’s a little bit older. Thank depreciation for this, and thank the first owner for taking that initial value-loss knock on your behalf at the same time. 

Your new-to-you car may have been out of reach when it was brand new, but its depreciation put it within reach of your financial resources. And, because you shopped cleverly and opted for a late-model, low-mileage used car, you’ll have most of its warranty and service plans intact for the next few years. 

You could also maximise your savings and bring down your instalments, by choosing a used example of the car you could actually have afforded to buy new. That thousand bucks your save every month, due to the used car’s lower purchase price, could even be enough to pay for insurance and an add-on service plan or warranty. 

And, because you bought a cheaper car of the same abilities instead an expensive new one, you’ll enjoy most of the creature comforts without suffering the impact of its initial depreciation. All these factors, along with the benefit of smaller instalments and cheaper insurance, will certainly leave your bank account significantly less bruised and battered.

Related: Shop for new and used cars, bakkies, and SUVs for sale here.

 

Verdict

In days of old, common wisdom held that buying a used car may just end up with you buying someone else’s problems. That may well have been true, because 100 000 km used to be seen as the border between “still good” and “on the decline”, a mere 20 years ago. 

But, thanks to improved materials and closer manufacturing tolerances, that old adage generally doesn’t hold true anymore. Just keep your expectations reasonable. If your budget barely stretches to, say R 200 000, buying a high-mileage used premium car with an expired maintenance plan in that price bracket is usually a foolish decision. 

There’s a reason why old luxury cars are so inexpensive: as they age, their maintenance simply becomes too expensive to keep up, which is why they end up on used-car salesfloors at apparent bargain prices. Yes, they may be nicer all round than a late-model supermini of the same value, but their running costs may well catch up with you and leave you with greater monthly expenses than you would have expected...