That buzz you get from buying a new set of wheels. It’s unbeatable.
But in your excitement, it’s important to ensure that buzz isn’t coming from under the hood - or anywhere else on the car.
That’s why we’ve put together our comprehensive car buying guide. We’ll tell you exactly what to look out for - outside, inside and beneath the bonnet. And when it's all said and done, remember to check out our full range of car loans.
Buying a Used Car vs. Buying a New Car
For many Australians, buying a car is a significant financial decision. The choice between purchasing a used car versus a new one often centres on individual priorities, financial situations, and personal preferences. Our goal, as a specialist loan broker, assisting those who face challenges securing loans from mainstream lenders, is to help you make an informed decision. Here's a detailed look at the advantages and disadvantages of both options:
Buying a Used Car
Advantages:
- Cost-effective: Generally, used cars are less expensive than new ones. This allows for a lower upfront payment and potentially smaller loan amounts.
- Depreciation: A new car loses a significant portion of its value in the first few years. By choosing a used vehicle, you avoid this steep initial depreciation.
- Insurance Costs: Typically, insurance premiums are lower for used cars than for new ones.
- Variety: With the used car market, there's a wide range of models from various years, giving you more choices.
- History Reports: Comprehensive vehicle history reports can provide insights into the car's past, helping to ensure you're making a good purchase.
Disadvantages:
- Uncertainty: Even with thorough checks, there's always some risk regarding the car's history and potential undisclosed issues.
- Higher Maintenance: Older cars might need more frequent repairs and maintenance - which may add to the costs.
- Fewer Features: Used cars may lack the latest safety and tech features present in newer models.
- Limited Warranty: Many used cars come with limited or no warranty, although some certified pre-owned programs might offer extended coverage.
Check out our Used Car Buying Guide
Buying a New Car
Advantages:
- Latest Features: New cars often come equipped with the latest safety, technology, and comfort features.
- Warranty: New vehicles usually come with comprehensive manufacturer warranties, giving you peace of mind for several years.
- Customisation: You have the freedom to choose the car's features, colour, and specifications when buying new.
- Financing Rates: Often, new cars can have promotional or lower interest rates, though this may vary.
- Predictability: There's a certainty that the car hasn't been in accidents or had previous mechanical issues.
Disadvantages:
- Higher Depreciation: New cars depreciate quickly in the first few years, which can be a concern if you plan to sell it soon.
- Cost: The initial purchase price of a new car is higher than that of a used one.
- Insurance: Typically, insurance premiums are higher for new vehicles.
- Potential Bugs: Some new models might have undiscovered issues or "teething problems" in their first production years.
Check out our New Car Buying Guide
In Summary:
Both used and new cars have their merits. If upfront cost, avoiding heavy depreciation, and insurance savings are your priority, a used car may be the right choice. However, if you value the latest features, a fresh warranty, and the assurance of a brand-new vehicle, you might lean towards a new car.
Regardless of your decision, our dedicated team is here to assist you in navigating the loan process, especially if you've faced challenges with mainstream lenders. Our expertise ensures you receive the best possible financial solution tailored to your unique situation.