When should you buy a new car versus a used car?

Scenarios where a used car seems like a better bet

Small budget

If your budget is small and will only get you to the start line of the new car market, then buying a used car is a good idea. This means you will be looking at an older model with more kilometres on the odometer, but at least you will have a good car in your budget. You can check out our detailed story on what you need to look out for when buying a used car.

Bigger car for less money

You go into the pre-owned market if you want a bigger car for lesser money. You will, of course, be buying an older model that will offer the same space/brand value but may not have the upgrades or new safety features offered by a new version of the same car.

Vehicle needed urgently

A waiting period for a new car is a given, especially in this post-COVID era. If you are in urgent need of a car but can’t wait that long then a used car in your budget is a good deal. Of course, that doesn’t mean you should let your guard down, ensure you do all your checks before signing on the dotted lines.

Scenarios where a new car seems like a better option

If you plan to keep the car for at least 10 years, it is a good idea to buy a new car. The acquisition cost will be higher, but maintenance costs will be much lower due to extended warranties and better insurance rates, especially in the first five years of ownership.

Latest tech or features integrated from the factory

If you want the latest safety and interface technology, a new car straight out of the factory is a better bet. It will have all the latest advancements in terms of comfort, user, and safety features even over the same car from the previous year.

Lower running costs

This is an extension of the first point, which is that the car may cost you more to buy initially, especially on a loan, but will have lower running costs due to the newness of the car, extended warranties, and lower insurance premiums. You will also get access to manufacturer-managed roadside assistance as compared to the assistance provided by the insurance.