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Buy a new car or a used car?

Often, when you want to buy a car, the first thing you have to ask yourself even before choosing a car brand or model is: Should I get a new car or a used car? A new car is often tempting but what holds people back is usually the price. Apart from the price, there are also many other factors that can affect your choice. Choosing one over the another could mean very huge differences and it is important that you are aware of the differences getting either could bring about. This post seeks to provide the pros and cons of getting a new car and a used car respectively.

Pros of a New Car


  • Brand new and equipped with the latest technology and features
When you buy a new car, you can be assured that everything is brand new - from the tyres to the engine, it hasn't been involved in any accidents or damage and has a clean history. Even the technology would also be of the latest in the market so you can be sure that the car you've got is modern and up to date.
  •  Warranty coverage
New cars come with warranty from the manufacturer which usually covers free car servicing and manufacturing or quality flaws, up to a certain mileage, for a certain period. On the other hand, used cars normally come with no warranty which means that you would have to buy an extended warranty for your used car if you want to. It may be quite expensive but would help save repair costs when the need arises.


  • More reliable information available
When getting a new car, you can be sure that it comes with verifications and information on quality and features from the manufacturer and the dealer but the same cannot be said for used cars. After all, they are used and it is ultimately a question mark as to what the car has been through and you can never be certain information provided is reliable. This is where checking a used car becomes important and it is curcial that you know what to look out for. 


Cons of a New Car


  • Depreciation
A new car depreciates way more than a used car and takes its biggest depreciation in the first 2 or 3 years. You start losing money the moment you start driving your new car - your car is instantaneously worth a few thousand dollars less than how much you paid for it. 

Pros of a Used Car


  • Cheaper
This is one of the most obvious benefits of getting a used car - used cars are generally less expensive compared to new cars. In addition, used cars depreciate less as the previous owner or owners would have absorbed most of the loss.
  • Cheaper to insure 
Used cars are generally cheaper to insure than new cars simply because used cars are less valuable and that new car parts are more expensive to replace and the insurance company would be responsible for covering repairs up to a higher amount.

Cons of a Used Car


  • Fewer variety
When it comes to a used car, there are fewer options to choose from and you may have to compromise on certain factors over the others. It may be difficult to find a used car that matches perfectly with what you had in mind and you may have to go with the best that you can find.
  • Greater repair and maintenance costs
As used cars are older, they are more likely to be subjected to wear and tear, and mechanical issues and may require frequent repairs and maintenance which translate to higher costs incurred. Although new cars may look perfect on the outside, they may also require servicing and repairs but the likelihood is lower as compared to used cars.


That's about all for the comparison between new cars and used cars. A side point to note is that the waiting time to get a used car is generally much shorter than a new car which can extend to as long as 4 to 6 months, depending on your dealer. Ultimately, there is no best choice as to whether you should get a new car or a used car but it really depends on your situation and which best suits your need.

The following are some articles related to the cost of owning a car in Singapore and getting driving licenses, if you need them:

Comments

  1. Yes, that is true. But usually cars used for less than 5 years should not vary as much in terms of maintenance and repair costs. As mentioned in the article, insurance costs may not be as high as well. It is all about weighing the pros and cons, including the frequency of usage and your current financial status.

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  2. Personally, when it is time to buy a car, i usually choose a used car. Cars are simply a means of transport, and its is really quite a waste of money and resources to buy a new car. Maybe fans of acquiring new cars can enlighten me on the reasons why they rather buy a brand new one? Other than the obvious reason of having enough money.

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  3. I think buying a brand new car comes with a peace of mind that there isn't any unknown defacts or repairs that needs to be done that you do not know the cause of, because the previous owner did not reveal it. Also, the older the car is, the more frequent maintenance work needs to be done, and to renew the license requires more money as well.

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  4. Yes, why deal with the uncertainty of not knowing what the used car been through when you can simply spend a little bit more money to buy a peace of mind? Used cars can be gems, like finding a pretty vintage work of art or a model that is simply not in production anymore. Does anyone else agree that older car models seem to be more reliable and require less maintenance?

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  5. I think finding a reliable used car is really one in a million chance. But vintage cars on the other hand, is a whole new set of reasons for an owner to buy one. In terms of functionality, the price seems to be the only reason why someone would rather a used car. Timing is important as well, buy a new car at a right timing, and prices can be as low as a used car.

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  6. A new car will likely be more reliable than a used one, even though pre-owned cars are much more dependable than in the past, with better technology and commonality. If a new car breaks down, you can have it fixed for free under the included brand warranty for the new car, at least for the first three years. Without warranty, a used car repairs and maintenance can be quite high.

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  7. Buying a used car might save you upfront money, but it may cost you a lot more over the long term. If you decide to buy a good used car, in my opinion you might as well spend a little more to mitigate the risks of car repair and maintenance. That’s just my risk and reward perspective.
    Another perspective is the cost versus value which influenced me more. Buying a new car seems scary because the numbers are so high. But that’s what financing is for — especially at extremely low rates like 2% – 4%. You can put down as much money as you’re comfortable with.

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  8. I think it is better to be safe than sorry, especially when it comes to buying a car, it is not like buying vegetables. Buying a new car would probably be the best bet to save yourself from any hidden troubles and problems that a used car may have.

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  9. You cannot be sure definitely that a new car is free from all kinds of problems though, yes there are less likely to be problems but you can never guarantee a perfect, defect-less car. Of course, at least there is warranty coverage for new cars, just saying that you should not buy a new car expecting that you are totally safe from any repairs or maintenance cost, things do happen sometimes.

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  10. I am planning on getting a used car after much thought in addition to the fact that I have no need for a brand new car. After all, who says a used car would definitely be prone to frequent repairs and maintenance? Does anyone have any used car dealers to recommend? Thanks in advance!

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  11. If you are getting a used car, you better make sure to find a trusted used car dealer and find out what you need to check and look out for before accepting the car. I do not know of any trusted used car dealers to recommend though as I only have experience with buying new cars.

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  12. Thanks for the comparison summary between used cars and new cars. It is a great reference for me as I am now deciding whether to get a used car or a new car. I think I will go ahead with a new car to buy an ease of mind. I mean, since you are getting a car, might as well get a new latest one or just stick to public transport right!

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  13. I think we have to think long term, a used car may be enticing in the short run as the immediate upfront costs are way lower compared to a new car. However, in the long run, that’s where the problems start appearing and your money starts flying. I would definitely get a new car, it’s a safer choice.

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  14. When getting a used car, it is also important to consider if it is a PARF car (less than 10 years old) or a COE car (more than 10 years old). COE cars may be cheaper than PARF cars but do note that when you deregister a COE car, you only get the unused portion of your COE back as compared to at least 50% of the PARF value when the PARF car is near 10 years old.

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