This post is sponsored by Car Loan World
There’s nothing quite like buying a new car. That feeling of being the first person to drive the car, seeing single digits on the mileage counter, smelling that new car smell, hearing the gentle thunk of new car doors closing. Buying a new car can be an awesome experience – but thinking practically, how does it stack up to buying a car that is used?
Upfront Costs: One of the first things nearly everyone thinks about when buying a new car is the price. It’s no secret that you will pay thousands of dollars more for a new car compared to the same model a few years older, so what makes up for the kicker that is new car depreciation?
Finance Costs: One benefit of buying new is the money you can save on car finance. Car loans providers often offer better interest rates on loans for new cars than for used cars. It’s up to you to work out whether the interest you save on your car loan makes up the higher upfront cost of the car.
Insurance Costs: Unfortunately, you may find that it costs more to insure a new car – usually because the car is worth more new. Chalk that win up to the used car board.
Safety: However, newer cars can be safer than older models. As manufacturers strive to obtain higher safety ratings, each model can become safer over the years. Compare the ANCAP safety rating of your new car with its predecessors to see if there are any improvements in the latest model.
Style: Fashions and trends develop over time. If you have a thing for the boxy cars of the eighties, then a used car could be for you – or, if you follow fashion and you like the sleeker lines of the latest models, then a new car may be a better option. Both can be obtained through purchase or car loans.
Fuel Efficiency: Another improvement that often comes with later model cars is improved fuel efficiency. Any manufacturer that wants that Federal Government Fuel Efficiency sticker will have to make changes to how well the car handles fuel – which should help you save money on petrol over time.
Modifications: One of the great things about buying a car new is the fact that you can customise it to suit you. You want metallic paint? You got it. You want leather interior? You got it. You want heated seats? You got it. As long as you have the money, and the manufacturer has the option, you can buy a car exactly the way you want it. The only downside is the amount of time you will wait for it to be delivered.
Warranties: Another upside of buying a new car is that you will be blessed with a full manufacturer’s warranty. This should cover most hiccups your car will face during the first few years of life. On the other hand, you might find a used car with warranty, with a little bit of research.
Peace of mind: One thing about buying a used car is that you don’t know what it’s been through. It might have had a rough time of it with previous owners, but you won’t know that until it breaks down in the middle of rush hour traffic. Remember, if you do buy a used car, get it checked over by an independent mechanic or have the NRMA do a vehicle inspection on it.