Choosing a car is never an easy decision, especially when weighing up your options between a pre-owned vehicle or a new car. Making this decision is a crucial step in your car-buying journey and will be one of your first big purchasing decisions. Pre-owned vehicles are not brand new, while new cars come directly from the dealership and the satisfaction of knowing that you are the vehicle’s first owner.
Pre-owned vehicle advantages and disadvantages
- One of the most significant advantages of a pre-owned vehicle is the price. These vehicles are more affordable than new cars, and you don’t have to carry the high depreciation costs that the previous owner had to face.
- A lower purchase price means that finance costs and insurance costs will be lower.
- If the vehicle still falls within the motor plan or warranty scope, the remainder of the benefits can typically be transferred to you.
- The Consumer Protection Act (CPA) stipulates that a seller must declare known defects to a potential buyer. Yet, the reality exists that the vehicle could develop problems later and leave the buyer without any guarantee.
- Should the warranty or motor plan be expired, it could mean costly repair and maintenance costs.
- Buyers don’t have the freedom to add optional features like they would when purchasing a new car.
New vehicle advantages and disadvantages
- Being the first owner of a car creates a greater sense of the vehicle’s reliability, as there is no vehicle history to take into account.
- New cars come with comprehensive manufacturer warranties and typically a motor plan that will cover your services up to a specific mileage or future date.
- New cars tend to require less maintenance than used vehicles in the first few years of ownership.
- Purchasing a new car gives you the freedom to customise the vehicle to your taste.
- Any new vehicle will have instant depreciation.
- While it can be nice to customise the car to your liking, it carries extra costs.
- Dealerships are often only willing to sell the latest models, and this doesn’t give too much variety to choose from.