Whether you are a first time car buyer or simply looking to replace your car, at some point the question will arise, should you buy a new car or a used car? Every car buyer is faced with this decision and it's not always an easy decision to make. Some people for instance will always buy a new car and get great pleasure from driving the latest models. Driving the newest, latest model is often considered to be a status symbol, showing the world that you have money and have reached a certain level of success. Other people though might not have the finances to secure a new car and therefore dabble in the used car market. Now there’s no right and wrong, people are just different and choose to spend their money in different ways.
In my humble opinion, the single factor that most people fail to consider when buying a car is depreciation. Depreciation is by far the biggest expense a car owner will endure. Like it or not, if you buy a new car today, tomorrow you will have lost thousands of Rands due to depreciation and you will continue to lose many more over the next few years. Many people might argue then that buying a new car is a waste of money. This might be so, but a new car has its advantages such as warranties, low maintenance, latest features and so on, but does this warrant buying a new car?
It may be in your best interest to find a two-year-old used car that’s in good condition with low mileage. The advantage is that as a car gets older it depreciates slower making a good used car more worthwhile in terms of depreciation, as the previous owner would have taken the biggest knock of the depreciation. It must also be remembered that used cars are also usually cheaper than new cars and are therefore a more affordable option for many people.
Ultimately, the decision lies with you and your financial situation.
Let’s debate this. What’s the better choice, a new car or a used car? Drop your opinion in the comment box below.
