Buying A Car: New vs Used

So you're buying a car. You have all your financial ducks in a row and may even have paid a few dealerships a visit for quotes. Model? Check. Make? Check. Colour? Of course. New or used? Uhhhh... A car is an exciting purchase but one that can induce anxiety when one hasn't done their due diligence. When it comes to choosing between a new or used vehicle, many find themselves caught in the middle of saving a couple of Rands and the peace of owning a vehicle that's never been driven before. There are pros and cons to both. 

There are many advantages to buying new, first up: warranty, a new vehicle will typically be under warranty and for quite a while so you don't have to worry about costly repairs, though a new car will not need many repairs in its first few years. This allows you to only worry about maintenance for this period. Another advantage of a new car is that dealers and credit providers will likely offer you vehicle finance at a lower interest rate, reducing the amount of interest you pay over the loan period. Of course, a new vehicle will have the latest technology and features, another plus.  
The biggest disadvantage of buying new is depreciation. A vehicle depreciates the most in the first three years of its lifetime, simply put: you are driving away thousands of rands from the first time you turn the key.  

The other option, buying used, has some perks of its own. A used vehicle is significantly cheaper than a new one, and this is because the first owner bears the brunt of depreciation. Used vehicles also have a high resale value. Buying used offers you a wider variety of options as you can explore older models but there are always two sides to a coin. There are also some disadvantages to buying used: A used vehicle may not be as reliable as a brand new one and any problems that arise may be costly if the vehicle is out-of-warranty. One also cannot add features to a used vehicle and will often have to compromise on the exact features and options that they want.  

Having considered all the factors, the decision between used and new should ultimately be a matter of personal preference and affordability. One also needs to consider safety, reliability, and the long-term financial implications of such a purchase. Finally, a car is a huge purchase and one that you will interact with more often than you think, it's important to drive away from the dealership in a car that you love!