Used cars vs Brand New Cars
Buying a brand new car is an exciting experience, not only for car enthusiasts but even for someone who doesn’t know much about automobiles. One of the most common dilemmas among potential car owners is whether or not to choose used or brand new cars.
There is no general rule of thumb whether or not you should choose used or brand new cars. There are different instances and scenarios which make one better than the other.
Is it really cheaper to buy used vehicles?
Finance experts would most likely suggest used vehicles than brand new cars. This is a common choice by those who don’t want to spend near a million pesos on a vehicle. It sounds practical, isn’t it? You could already buy an 8-year-old car for around P300,000.
But of course, if you are going to look at the long term use of old and new cars, the latter will give you peace of mind. Brand new cars are more reliable since it offers minimal repairs, especially in the first five to eight years.
Also, you don’t need to worry so much that the brand new car is not going to be covered by car insurance. Car insurance companies are more than willing to cover for brand new vehicles.
Resale value
Resale value is still decent for a brand new car after 5 to 10 years. If you’ve decided to use the vehicle for commercial purposes, it may have already given you a decent ROI. For the used vehicles, you don’t expect a lot of money on these cars.
There are different factors that should also be taken into consideration when it comes to used a car’s resale value. The interior, the overall wear, and tear, not to mention the service history are some of the things that will usually dictate the price of a used car.
Interest rate
At one point, you will need to avail of a car loan. Here, you’ll need to consider the interest rate as well. For brand new cars, most likely, you’ll need to consider having a loan. On the other hand for used cars, it is more feasible to pay upfront for your car avoiding crazy interest rates. Also, you need to take into consideration the interest rate is higher for used cars. Expect the interest rate to be 2-4 percent higher than the new cars. This is why you want to shop around for the best car finance deal.
Condition
If you find yourself buying a brand new car, you are guaranteed that everything is fresh. On the other hand, used cars will have different degrees of wear and tear depending on how it was used, and where it was used. If you purchased a vehicle in Metro Manila, you can expect the car to have been stuck in traffic and even possibly been too flooded areas.
One of the things that you need to consider before buying used cars is to check the mileage. An average of 10,000 kilometers traveled is expected on cars in the Philippines. With this number, you’ll be able to determine the amount of wear and tear that the car has been put through over the years.
Conclusion
Buying a brand new or used car can be a tough debate. It depends on what you intend to do with the vehicle that makes it a practical purchase. If you are the type of person who has a tight budget, then used cars would suffice. However, if you have the resources, plus you want the peace of mind, having a brand new car makes a huge difference.
Tags:
