When it comes to buying a car, buyers always encounter the ultimate dilemma of whether getting a new car or a used car. Buying a car is an expensive investment. Malaysians are often left with no choice but to bear with the current state of public transport. There are plenty of reasons to buy a car, upgrade from an old ride, for the convenience of traveling to work or simply because of the irresistible outlook of the car. While most of your friends trying to convince you to get an used car, it is important to figure out how to make every of your penny worth the value.
Buying a Used Car
Used car is usually cheaper and it is great value for your wallet if you could find one that is well maintained. With the relatively same cost, you can step up a notch to a nicer car. However, you would not know the car condition by simply judging from the outlook. Luckily, PUSPAKOM lays out a term that all vehicles must undergo mandatory inspection before transferring the ownership of vehicle.
Car loses it’s value as time goes by, the depreciation of value is based on passing months and mileage. However, one suffers the steepest decline in the first year of purchase. Some cars can lose up to 35% or more of their value in the first year. Cars depreciate so quickly in the first year because of new model year factor, new cars are generally have new functions and new features which drastically reduce the value of your current car.
*Car price is based on estimation of market car value. Depreciation rate varies depending on car models.
The down payment for new and used cars are usually 10%. However more car makers are waiving off this requirement to attract more car buyers. Used cars usually require down payment and there are only slim chances to get full bank loan due to used car are relatively higher risks.Unlike new car which is zero faulty, banks often make up for the potential risk for used car loans by charging higher interest rates. One of the potential risk is the bank have to bear with the unpredictable resale value of used car.
It is a matter of choices which car you choose to go for. Many buyers choose to visit used car yard to pick up their cars. Some choose to browse through online catalogue and some merely buy their car from someone they are familiar with. However, there are risks of buying a lemon, which is defective vehicles. Used car rarely have warranties, so make sure to check on PUSPAKOM report before purchasing or you might need to prepare some budget for minor repair and maintenance.
Buying a New Car
New cars are generally fresh baked out of the oven and you can decide the ingredients for it. Car makers have variety of customizable features available for the new car. If buyers wish to make their cars look sportier, they can add-on body-kit or stock decals. If buyers wish to up a notch with in-car multimedia capability, they can choose for an upgrade with latest infotainment system.
The new car warranty often comes hand in hand with service warranty. Most car makers able to provide 3 to 7 years warranty period. New cars are generally in their best shape. Good news is some car makers even offer extended warranty or cash back options for the buyer to choose from. However, you need to pay attention on ‘What’s Not Covered’ for your car warranty. Some of the general situations are vehicle must be sent for service according to maintenance schedule, no third party parts, lubricants or fluids, no warranty for wear and tear and altered odometer. You can refer to Toyota after-sales service and warranty to find out more.
Budget and finance
New cars are comparatively more costly than used car. The interest rate of the hire purchase for new vehicles are lower. For local cars, the interest rate is typically 3.2% to 3.6% and 2.6% to 3.0% for foreign cars. Comparatively, the interest rate of used car is higher, ranging from 3.6% to 4.0%. Buying a new car will eventually cost you less interest in a long run. New car depreciates the fastest in the first few years, so you should make a wise decision when buying a new car and avoid selling your new car quickly. However, if you are simply looking for a car for day-to-day commute, new car is reliable and less repair works needed to be done.
Imagine walking into a new car for the first time and it smells fantastic. New car is accident-free, no wear and tear and come with zero mileage. Car makers often offers free service package for the drivers, which makes buying a new car worthy. New car also has higher fuel efficiency and lower carbon emission. With the introduction of EEV, there are more new cars able to fulfill high fuel efficiency and low emission. In addition, certified EEV cars are able to entitled government incentives such as tax reduction and fuel rebates. Yet, you should be considering between buying local or foreign cars. Local cars are generally cheaper in purchasing spare parts compare to foreign cars. However, if one practises good driving etiquette, a new car could save you from splurging on repair fee in long run.
It is all about choices that you made, take above pros and cons as a reference and make the best decision. The most important factor would be the budget. MyCarsearch offers great deals and assistance for first time car buyers. What you can do is to plan out on monthly instalment that you could afford and narrow down your options, you would not want to go for broke for a car.