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Is it better to buy new or used car?

Buying new car or used car? That question usually pops up when someone is going to buy a car as a personal transport means.

Before answering, there are several things you should note. First, your main reason of wanting to have a car. Make sure of your needs before you decide to buy the car, whether it is to be used alone or with your family.

Second, check your financial ability. Buying a car means it is not only about spending the money in the beginning, but also about monthly spending, such as paying for regular service fee, toll charges, as well as gas expense. Therefore, before making decision to purchase a car, you must be sure that it won’t affect your other primary needs.

After being clear with your intention and financial ability, next step is to determine how to get the right vehicle for you. Should you buy new car or used car?

New car

If you have sufficient budget or more, then buying a new car should not be a problem. You can buy it cash or join an installment program.

There are many benefits from buying a new car. First, you will get certain prestige for having a car with the latest design and features.

Second, you will less likely to worry about the car’s quality and technical problem due to new engine.

Last but not least, a new car most likely comes with warranty and service guarantee during certain period. So, if your car breaks down during that period, the dealer will pay all the expensesfor service, new spare parts, or both. Additionally, you will get free service up to certain mileage.

However, buying a new car also has itsown disadvantage. New car resale price can quickly depreciate even if only used for a few months.

In the first few years, the price of a newly purchased car can usually drop until 10%–15%.

Used car

On the other hand, buying used car has its own advantage. First, it is more affordablethan a new car, which is good for those of you with limited budget.

Used carscan also be paid in cash or in installments. Nowadays, there are many financing firms that offer auto loan for used cars.

Second, the resale price for a used car will not plummet, unlike the price of a new car thatwill automatically decrease after being used. The buying/selling price of used cars already have their own market standards.

Last but not least, with limited budget, you can get a car that has better specifications and features.

For instance, with Rp150 million, you will only get a new low cost green car (LCGC). Meanwhile, with the same amount of money, you can get a used car with specifications above the LCGC type.

Nevertheless, buying used cars also has several disadvantage. You will never surely know the quality of the car, whetherit is still roadworthy or not.

Therefore, to avoid getting a car that is not roadworthy, it is recommended that you buy a used car in a reputable place. Make sure that the seller is giving a warranty for the cars they sell.

So, is it better to buy a new car or a used car? Once again, it all depends on your needs as well as your budget.


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