Are you a dreamer or a driver of your own success? Part I

So – new vs used: Which car lives up to your dreams and more importantly – will get you where you need to be?

New or used? It’s a question that almost all car buyers ask themselves at some point, and there are arguments for each.

Based on our experience, and with the combined help of our network of car dealers and feedback from clients, we’ve put together this two-part guide to help you make the choice that’s right for you.

New vs used cars: The pros and cons

In this first of two parts – let’s start by looking at some of the pros and cons of buying a new car.

Buying new: The pros

1. It’s new: For many of us, a car is the second most (or most) expensive asset we’ll ever own. Knowing that no one else has ever used and/or potentially abused it, can be pretty compelling.
   
   That new-car smell with unblemished interior and exterior, confirms that no one else has ever spilled food or coffee inside, let alone ferried fur babies around, or driven too fast over bumps.
2. Lower running costs: Capped-price servicing*, brand new parts, fresh tyres and needing zero repairs – can equate to lower running costs, at least for the first few years.
   
   *Some dealerships offer capped-price servicing, which means you’re provided a list of the maximum cost of scheduled services ahead of time, so there’s no bill shocks.
3. Finance can be cheaper: Did you know that around 90 percent of new vehicles on Australian roads, are purchased under finance? New cars almost always attract cheaper interest rates because typically, new cars have a higher value, and a lower chance of breaking down.
4. You choose the features, specs and equipment: Buying a new car means choosing the colour, trim level and dealer options to suit your individual needs and preferences.
   
   Most models have a range, usually referred to as ‘trim levels.’ As the trim level (and price) increases, so more features are added. For example: larger wheels, a more powerful engine, driver-assist technology like adaptive cruise control, etc.
5. Warranty: Although late model used cars are often still under their factory warranty, a new vehicle means you’ll have the maximum amount of time while it’s covered.
6. The latest tech: A new car means you’ve got the most modern technology, which includes safety, design and driver-assistance features.

Buying new: The cons

1. Depreciation: The value of a new car can drop dramatically. In many cases – around 30 percent by the end of the first year. This can make selling the vehicle a sting in the hip pocket, when you are ready to sell.
2. Wait times: Some new cars have long delivery wait times. This means you may need to plan in advance, which could cause issues – if your current car is struggling.
3. It’s expensive: Buying new from a dealer often means that you’ll be paying top dollar, and most likely – won’t be able to negotiate on the final price.

Stay tuned for Part II of this series, which will focus on purchasing a used vehicle – and the associated pros and cons… 

And in the interim, if you have any queries, please reach out to us directly. Alternatively – please click here, to start a quote – and see how much you could save.

We have access to an extensive panel of lenders, including the ‘big four’ – and are ready to investigate and find the best solution to suit your needs.

Information contained in this document is considered to be true and correct at time of publication. In addition, the information provided is general information only, and does not take into account any individuals’ objectives, financial situation and needs. Before acting on any information contained herein, you should consider the appropriateness of the advice having regard to your personal objectives, financial situation and needs.***