Should you buy a new or used car?

Posted on Friday, April 15, 2016 - 11:52

One of the main questions of any Australian who wants to purchase a car is whether to buy a new or a used one. When it comes to this type of investment, the debate is endless. Moreover, if you are interested in buying a car, most probably your friends overwhelm you with numerous pieces of advice. 

But who should you believe? The truth is that both options have their advantages and disadvantages. The secret of a successful purchase is to know all these pros and cons and analyse your personal situation, and then decide which kind of car suits you best. Gumtree has a range of new and used cars for sale in Australia. 

Reliability

The most significant advantage of a new car is its reliability. When you buy a car, you don’t want it to break down after a few trips. Instead, you wish to be sure you can rely on it even when planning a long journey. Chances are that a used car may have more mechanical issues than a new car which you will need to resolved, costing you more. So if you want to avoid these problems as much as possible, a new car is undoubtedly a better option than a used one, new cars also come with a 3-5-year manufacturer’s warranty so if a mechanical breakdown does occur you are covered. On the other hand, if you are taking a professional with you when inspecting a used car you are interested in, you can make a great decision regarding price-quality ratio. You can buy a car in an excellent condition, at a much lower price.

Resale value

When it comes to resale value, a new car has a big plus, once again. In the future, you may want to sell your car, even though at the moment this vehicle is perfect for you. The value of a car that has been used only by you and is resold for the first time is definitely much higher compared to a car which had several owners.

Financing

When it comes to prices, it’s clear that a used car is clearly a winner here. But what about financing? When buying a used vehicle, the purchase price of the vehicle may be lower however the interest rate higher, if the vehicle is new, the purchase price will be higher but interest rate lower.

In conclusion, both options have their advantages and disadvantages, and there is no perfect solution which suits everyone. You are the one who make the decision, and you should do it according to your situation, after analysing it thoroughly first and crunching your numbers.

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