New car vs used car: cost more or less?

New Car vs Used Car? When it comes time to buy a car, you have a variety of choices available to you. Not only do you need to pick the make and model of your car, but you need to decide if you want to buy a new or used car.

Whatever your reasons for purchasing a vehicle, be it out of convenience and necessity or for the love of cars, the most important factor to consider is getting the most value for your money.

We cannot deny that buying a new car is enticing but you should take a cold, hard look at how much you could save over time by buying a used car instead.

The real money-saver in buying a used car is wrapped up in a sinister-sounding financial word: depreciation.

 

DEPRECIATION COSTS

One of the major drawbacks of buying a new car is that it depreciates a lot within the first few years of your purchase, even as soon as you drive it off for the first time.

While depreciation costs are linked somewhat to how saleable the particular model is and how much you have cared for it, general depreciation will happen even if you are a super-careful owner who services your car every 3 months and keeps the cushion wrappers on!

Here is an example of depreciation costs for both local and continental cars.  It shows the cost of a local car, both new and used and the amount of depreciation it has gone through in the past years.

 

Both cars experienced depreciation at similar percentages but the price of the continental car fell further as is usually the case. It is because the continental cars are the most expensive in the market, and buying the used continental cars means you would not have to bear the brunt of the
depreciation costs that occur during the first year.

 

INSURANCE
When a vehicle is older (worth less), it will cost you less to insure it when you are buying a comprehensive coverage. The insurance rates will also be affected by the age of the car.

For example, for Perodua Myvi 1.5 SE (2019), you have to pay around RM1300 (estimated price) for the first year of its renewal, while you can pay less about RM700 for car insurance renewal when you are buying the same model of Perodua Myvi SE 1.5 (2014).

 

YOU GET TO CHOOSE THE CAR YOU WANT EVEN IT’S NO LONGER IN PRODUCTION

Buying a used car, as opposed to a new car will provide you with selection of inventory to choose from. You are not limited to models that were released over the past year or two as you would be when buying a new.

For an example, you can still drive a used Perodua Viva when pre-loved car is what you want, despite Perodua has stopped the production.

Click on the image if you are interested with one of the cars!

 

 

CERTIFIED / RELIABLE PRE-OWNED CAR

Many people may think that the biggest disadvantage of buying a used car is that it may not be as reliable or you may need to do more repairs on it. Fret not! Now you have the option of buying certified pre-owned car through a reliable company like muvone https://www.muv-x.com/buy

Having the car checked by a mechanic is one way to minimise this risk. At muvone, all the used cars have to go through an inspection, performed by accredited inspectors. Thus, all the cars from muvone have been thoroughly checked and come with a trusted and comprehensive 180-point inspection report.

Plus, you can enjoy a 3-day test drive experience for the car you wish to purchase!

 

 

YOU DON’T END UP GO TO WORK TO PAY FOR A CAR 

Most of us end up using a huge portion of our salary for a car. In addition, getting a used car might be great way of saving that extra penny on your first pay cheque! After all, a good used car does get you from point A to point B as well. To top it up, you can definitely reduce your list of monthly commitments by getting a pre-loved car at a steal!

 

SO WHICH IS THE BEST DECISION?

Both cars have pros and cons and some people are more suited to old cars than new ones. Of course, another thing which will help you to decide is your budget. No sense hankering over a new car if you cannot afford it!

Budget on how much you can afford to pay back throughout the years ahead. Then choose the car most suited for your habits and lifestyle.

With muvone, you can get loan approval as fast as 48 hours for the used car you wish to buy. muvone has partnered with several panel banks and Tan Chong Capital Resources Sdn Bhd (TCCR) for easy financing facility.

 

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