Decide Whether to Buy a New or Used Car

Decide Whether to Buy a New or Used Car

Considering an upgrade on your wheels or a first car? The eternal question would be whether to buy a new or used car. We take on the question of buying new or used and turn it inside out to help you make a decision.

Buying a car in Malaysia is a pretty pricey affair. But no matter how expensive a car can be, with our current state of public transport, many Malaysians have little choice in the matter.

To some folks, owning a car is more than just to take you from point A to B - it’s a matter of pride and they take very good care of their cars with constant grooming and even modifications.

Whatever your reasons for purchasing a vehicle, be it out of convenience and necessity or for the love of cars; the most important factor to consider is getting the most value for your money.

The common question many would ask themselves is whether they should buy new or buy used. But which one is the most economical? And what are the cost involved in buying either a new or used car?

New vs Used

Despite the price tag of a used car being obviously lower than a new one, that doesn't mean you'll always be getting value for money with a used car. In the same way, getting a new car might be great, but unlike property prices, a new car loses its value much quicker.

Used cars are great value for money if you are able to find one that is in good condition and has been well-maintained by the previous owner. Discerning such condition from just a cursory visual inspection is difficult but luckily for owners.

If a car loan is involved, there will be a check required for hire purchase purposes also. Once this is done, if the car is found to be a lemon; you can decide to terminate the agreement to purchase.
The decision will be multi-pronged. Consider these questions when deciding:
  1. Do you have a particular car in mind or do you not mind anything that is reliable and relatively aesthetically pleasing?
  2. What is your budget and which cars will it accommodate, new or used?
  3. What is the most important aspects in car ownership to you (Look and feel; hassle free; taking price in revamping a fixer-upper)?
  4. How long do you intend to keep your car?
A simple example based on that would be: Adrian likes modifying cars but doesn’t want to ruin a brand new vehicle. For Adrian, buying a second-hand car cheap and then spending more of his budget on fixing and modification makes the most money sense. Contrast this with his girlfriend, who just wants a reliable car to get to work and fits her budget; a new locally produced, inexpensive car may be the best bet.

Always choose the car for your taste and budget as it isn’t necessarily a one-size fits all.

So which is the best?

It really depends on you. Both cars have pros and cons; some people are more suited to old cars than new ones. Of course, the other thing which will help you decide is your budget. No sense hankering over a new car if you can’t afford it! Budget on how much you can afford to pay back throughout the years ahead. Then choose the car most suited for your habits and lifestyle.