NEW OR USED CAR?

NEW OR USED? HERE ARE THE PROS AND CONS OF BOTH!

So it’s time to get yourself a new set of wheels, but in today’s market – with prices climbing, ever-extending wait times and mend-and-make-do semiconductor specials – is it worth your while considering a second-hand option? It seems like a leap of faith when there are now so many, simple ways to buy a new car, both on or offline.

Remember, the world of second-hand car sales hasn’t been immune to price-gouging either – but you may be able to grab yourself a much better deal on a used vehicle than a new one. Here’s an objective look at the pros and cons of buying new versus used.

BUYING NEW

THE PROS

Freedom of choice: A major ■ advantage of buying new is the ability to choose your preferred spec level, paint colour, options and engine. If you’re someone who knows what they want and is happy to pay (and wait) for it, buying a new car from a dealership allows for a multitude of options and a personalised buying experience.

Latest technology: Having ■ the latest technology like wireless smartphone mirroring and up-to-date navigation systems means no extra spend later on. Given our lives are so tech-heavy now, it makes sense to keep up with the times.

Peace of mind: This is

■ possibly the biggest drawcard – manufacturer warranty. Many carmakers now offer five, seven or even 10-year warranties, meaning the car may be covered for your entire ownership. The rise of capped-price servicing plans that paint a photo-realistic picture of ongoing costs also makes it easier to budget.

Financial freedoms:

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Manufacturers want you to buy new cars, and they work hard to make buying easy. Getting finance for a new car is a lot cheaper than used cars, with much lower interest rates, pre-paid servicing rolled into finance packages, and guaranteed future values. It’s an ecosystem that makes new cars cheap and easy in the long run.

THE CONS

It’s expensive: A new car has ■ typically been more expensive than used, though the gulf is now closer than ever. But, you still have to take into account depreciation. It’s not as bad post-pandemic, but for your average family car it’s still a factor to consider.

You’ll probably be waiting ■ a while: Or you’ll have to compromise on spec. This is because full-fat cars are hard to come by, with wait times from three to 18 months across the industry.

Limited servicing options:

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You might be limited to servicing the car at the selling dealership if you want to maximise your warranty, meaning you’re at the mercy of their service pricing.

BUYING USED

THE PROS

It’s cheaper: At least, most ■ of the time. Lightly-used cars up to three years old are currently holding value extremely well. Practical cars over five years old generally offer much cheaper purchase prices, though. Certain brands are depreciation monsters, meaning you can pick a car up cheap. There’s also greater bartering potential, especially with a private sale.

Shorter wait time: Almost ■ any used car listed for sale in the classifieds will be available right now. A swift morning phone call to the seller could have you in new wheels by the afternoon.

The market is your oyster:

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Don’t like the colours of the latest Mazda range? Well, there’s probably an almost identical variant from three years ago you can get in soul red crystal instead. That’s a very practical example, but you can literally buy any car that was sold new in Australia from the second-hand market.

THE CONS

It might not be exactly what ■ you want: Anything is available, but maybe not at the right time. It’s either buy it and learn to love it, or pass and wait another six months for exactly what you’re after.

Reliability and maintenance: ■

For all the service history,

J.D. Power surveys and research you’ve done, you can still end up with a lemon. And with a used car, there’s little recourse unless it’s covered under the manufacturer warranty. All dealerships must cover their cars with a three-month statutory warranty, and some certified pre-owned programs extend factory warranties, but private sales? Unfortunately, you’re all on your own.

Old technology: You’ll be

■ stuck with older and outdated technology from the get-go, and not having the latest safety technology, newest features and driving aids can sometimes make or break the ownership experience of a car.