New Car vs Used Car: Which is Worthy?
Key Points
- Should you buy a new car or get a used one?
- Getting a good-condition used car will only be worth the value.
- Car insurance is a must for both used and new cars.
It’s not surprising that many people in Malaysia have trouble finding affordable cars. However, with our current state of public transport, it is almost impossible to get around without having a personal vehicle! Some people don’t really think about their cars and just use them as a way to get from point A to B. However, some want to take pride in their cars to show their status.
A common question nowadays – “Should I buy a new car, or should I get a used one”? The allure of buying a new car is irresistible for most people, but there are also pre-owned options out on the market.
No matter the reason you have to have a personal vehicle, the most crucial factor is whether it will give the most value for your money. We are going to state out some considerations before making a decision to buy yourself a personal car.
Consideration
What should we consider when buying a used or new car? We’ve listed them out for you!
- Price
- Warranty
- Car loan
- Depreciation costs
- Car insurance
Price
Most people buy used cars because they are cheaper than new ones, but this doesn’t mean you’ll always get value for money with a second-hand car. Purchasing a new car might be great in condition, but unlike properties, a car’s value drops over time.
Only good-conditioned, used cars are great purchases for those who know how to find them. However, you should take some time to look for it and buy a used car from a trusted and good reputation seller.
Warranty
Unlike new cars, most used car sellers do not provide a warranty. Although the used car dealer might provide a warranty package, they will only cover particular parts of the car like the car engine, transmission, and cooling system. The used car dealer will deny the warranty claims if you have trouble with parts or items not mentioned in the warranty clause.
Getting a new car from any authorized brand car dealer (Proton, Honda, BMW etc.) will guarantee a warranty from the car manufacturer. It usually will last between three to five years or 100,000 to 150,000km.
The older a car gets, the more likely there will be issues with repairs and service. You may need to take your used vehicle into an auto shop for regular maintenance or fix any major problems before they become big headaches! Therefore, it costs you a fortune to repair your car’s parts without a warranty.
Car loan
While you may not be able to get a no-interest loan for used cars, there are still good financing options available through your local bank. The interest rate for used cars in Malaysia is around 3.6% to 4%, slightly higher than new cars, with the lowest at 2.3%.
Even though the interest rate is higher, the overall price of a used car is still cheaper than a brand-new car. Do not settle on the first bank when looking for a car loan. Instead, research different lenders and find one offering better rates than you currently have!
If you want to purchase a new car, you can get a good car loan deal through the car manufacturer themselves. Most have tied-in arrangements with banks or hire purchase companies to offer their customers better interest rates. However, doing some research and comparing different rates from different banks is recommended.
Depreciation costs
One of the most significant drawbacks of buying a new car is that depreciation happens quickly and can make up for losing money on your purchase. The depreciation costs depend on the manufactured year of the car, the brand, and the quality of the car. Therefore, even the most careful owner that takes care of their car so much will need to face general depreciation.
Although getting either used or new cars will have to experience depreciation over time. However, getting a used car means you do not need to bear the decrease in depreciation costs for the first few years.
Car insurance
If you’re a car owner in Malaysia, you must get car insurance for your beloved cars. You can choose from different policies and even add extra coverage and protection for your cars.
No matter if you are getting a used OR new car, you will need car insurance as it becomes imperative. Get a look at the best car insurance provider in Malaysia.
Verdict
You may be wondering what type of car is right for you. There are pros and cons with every scenario, but it also depends on your preference! If money isn’t an issue, then go ahead and buy yourself a new vehicle. However, if finances aren’t ready yet, maybe consider purchasing a used car that meets basic daily driving needs.
Related: Most Fuel-Efficient Cars in Malaysia | 10 Cars with the Cheapest Insurance | How to Save Money on Car Loan?
