Better Option:
Brand New or Second-hand Car
Source: Pic-uk.ph
One of the goals most people set in their lifetime is owning a car. It is an upgrade most people make in their lifestyle, especially when they want to have a more convenient living. When have already decided on purchasing a car, several factors need to be met per individual preferences. However, before giving a specific car a closer look, it is vital to choose where to purchase from. First-time buyers often get undecided between getting a brand new one or a second-hand vehicle. It is understandable for every buyer to want the best one that is practical and reasonable enough given their circumstances.
As buyers differ from one another, here are the pros and cons they can weigh on when deciding which to pick; a brand new car or a second-hand car?
Brand New Cars are the “never been used” and fresh from the factory vehicles.
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Pros
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1. Warranty
One of the advantages every client gets to experience when purchasing a brand new unit is the warranty it’s coupled with. Manufacturers issue this warranty that binds them to cover the cost of labor and parts when a defect on the unit arises within the agreed period from the purchased date.
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2. Cost Saving
In line with the warranty that a new unit comes with, the owner can save more bucks from the potential repair costs given that it’s within the warranty period. Also, it is expected to have lesser machinery problems in the next five years as compared to the older pre-owned car units. Maintaining the car is what will most likely cost you in the long run and not shop visits because of any broken parts.
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3. Latest technology
Most of the time, brand new cars are upgraded with the latest innovation and technology in the market. The most common perks of automotive upgrades are better gas mileage and lower waste and carbon emissions. Also, it comes with premium exterior designs that fit the aesthetic demands on-trend. It also has a better user experience as there are part improvements on its interior, making it easier to hook up other devices on it like smartphones.
Cons
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1. Value Depreciation
Unlike assets such as house and lot, the moment you drive your car out of the dealer’s shop, its value depreciates right away. According to the data released by Black Book on their tracing of the price drop in used cars, the unit depreciates nearly 60%of its total value in five years. The decrease is the summed up 20-30% value drop on the first year and the 16-18% drop on the second to the next coming years.
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2. Unavailable Affordable Alternative (Auto Parts)
This doesn’t really count as a disadvantage of a brand new car; unless you are buying the latest models in the market. The designs of vehicles have now evolved in a sense that parts from years back may not be the same or may not fit anymore with the older cars given the upgrades. Unlike the older car units, its parts may be hard to find or purchase in the local auto shops. It may not be available in the locality yet, that you may have to ship it from other countries where big manufacturers are at, like Japan and Germany.
Second-hand Cars on the other hand are the “used” units or what is called, pre-owned.
Pros
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1. Affordable Price
It is no brainer that used cars are priced at a lower rate - it’s more affordable compared to the new ones in that sense. The price, however, depends on the type of car, its age, and brand. There are classic cars that even after years, its price are still at a premium. In general, if you have a tight budget but need to get a car for personal use, a pre-owned car is the way to go. It is easier to save up and pay cash for second-hand vehicles given the lower price.
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2. Reliable Reviews
Nothing beats a long period of user experience to test product quality. When buying units that have been used and put to test through previous owner experience, you can have a better insight into which model delivers. Sometimes, you don’t really need more car accessories and upgrades in the brand new cars to make a better functioning car. It can, at some point, affect and compromise the engine’s full basic functionality. Older and used cars may have enough of what’s needed for it to work as expected. Spending extra bucks for it doesn’t sound practical anymore.
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3. Lower Value Depreciation
A car’s highest point of value depreciation happens on its first to the fifth year upon purchase. If you purchase a three-year-old car at 200,000 pesos and in the next year it depreciates by around 16%, you are expected to have lost 32,000 pesos. Whereas, if you purchased a brand new car at 1 million pesos and in its first year it depreciates by 30% of its value, you lost 300,000 pesos. That’s a huge gap!
Cons
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1. Outdated Designs
One major downfall of a second-hand unit is it may be too old and outdated in terms of design. A car’s greatest asset is its physical look which over time changes except for the classic ones. The trend on buyers’ aesthetic preference of vehicle design varies and most of the time, it is nothing like the old ones. The latest releases are more on modern, sleek, and technologically smart-looking vehicles which are incomparable to the older models. It may also not be as fuel-efficient as with the new models, which can be a lot more costly for owners.
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2. Higher Maintenance
Older vehicles that have been used for years will most likely require more care and maintenance. A car 5-10 years older will require several changes in engine oil than the brand new ones. Other services like battery change, air-con repairs, and cleaning of oil filters may be necessary, adding up more costs for you.
3. Phased-out Parts
Old car parts that were produced years ago have the tendencies to get phase-out anytime now. Since manufacturers are using a different technology or technique in designing modern cars, they might inevitably stop producing the older versions. This is when getting older and used cars become problematic. The access to purchasing these may be hard or totally impossible when doing repairs.
The pros and cons above are just a few of the considerations every aspiring car owner can look into. At the end of the day, what matters for one individual may not be as impactful or as significant to others. They have to decide which option is the better for them. Brand new or second-hand, what matters is it’s within their financial capacity. Like any other assets they must give themselves an ample amount of research and time to make a sound decision. They must know the reliability of the distributor or individual they are getting the vehicle from. There are several trusted car shops online like Autodeal Ph, Carmudi Phillippines, and PhilKotse that sell both brand new and used cars and have good reviews from previous clients. It is important to choose the car that fits the needs and could deliver its purpose of a more convenient transportation.