New vs used: which car to buy?

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There is a question that always arises for all car enthusiasts, whether to buy a new or used vehicle? This dilemma rings stronger with the increase in excise taxes on vehicles in Malaysia. However, the desire to buy the latest model when it comes to cars; stays.

Many new products have been launched for customers in the automotive market. With the new all-inclusive down payment plans and zero percent interest rates, anyone in Malaysia with a stable income can afford a car. However, some are reluctant to pay more for a new sedan model if they can afford an SUV for the same price or even less.

We have spoken to a few key players in the Malaysian auto industry and advisers and we will try to guide you through this dilemma. You might not get a definitive answer to this, but it will certainly give you an idea of ​​the options that are out there and the pros and cons that come with them. We used some important factors for the purpose of this comparison, as follows:

Cost

New car vs used car - Price

A used car will offer great value from a financial point of view, provided the car is in good condition and has the proper specifications. For the same amount or less than buying a new car, you can get more space, more amenities, and a more efficient engine.

To give you an example, if you are interested in purchasing a brand new Brio in the latest model, you can get a used SUV such as the CR-V A / T and thus save around 3000 ringgits!

Another case is that you can replace a used Pajero-2005 with a base Mirage GLX model and save 3000 Malaysian Ringgits with the happiness of bringing home an SUV!

Car maintenance and condition

New or used car - Maintenance

We’re going to be stating the obvious when we say that a new car wins the car condition battle. Many experts believe that if your peace of mind is a major consideration, buying a new car is always a better option. This is because nothing happened to the car without your knowledge. Hence, there is no hidden past of your vehicle that you might not be aware of.

Many used car owners are concerned that their unit has already been in an accident or is damaged during a flood. The major advantage of new cars is the fact that they come with a manufacturer’s warranty of 3 to 5 years, depending on the vehicle. The warranty is an essential part of the car buying process, because if any part of the car stops during the period, it is replaced at no additional cost.

Ease of purchase and acquisition

New or used car - Ease of purchase

Buying a new car in Malaysia has become a faster and easier process today. We’ve heard stories of customers going to a showroom during the day, choosing a car, getting same-day loan approval, and driving their new vehicle home before the sun sets.

Over the past few years, the process of buying a car has been greatly simplified. The requirements also boil down to 2 proofs of identity, a work certificate, a bank certificate and a copy of your latest RTI is all that is required. A minimum income of RM 4,500 is required to get an approved loan for a car model such as Honda City or Jazz.

If you buy your car from a used dealer, chances are they have connections with a few banks to get your loan approved. However, they do offer better deals and interest rates to those who buy a new car.

If you are worried that your salary will not meet this drop, you can always ask your spouse, parents or even a friend to be your co-borrower for the loan amount. A co-borrower or a co-creator lends his money in addition to the obligation of the principal debtor and makes himself directly responsible for the repayment of the loan. This means that in the event that the primary borrower does not repay the loan, the co-builder will pay the amount without owning the vehicle.

If you look at the numbers, you can buy a City or a Jazz with a small deposit of around 3000 Ringgits. Car buyers usually choose the loan repayment term at 5 years, which makes the monthly payment very low.

Depreciation of the value of the car

New vs used car - Depreciation

This is one of the best advantages of buying a used car because the previous owner has already taken precedence over depreciation. As soon as your vehicle leaves the showroom, its value decreases.

If you were to compare a car and real estate, a major difference is that the value of the vehicle decreases more every day when it is with you. If you are buying a used vehicle, the depreciation value has already been factored in, making it more lucrative for potential customers.

Assurance

New or used car - Insurance

Insurance is a very important aspect, but you don’t have to worry about it. Many Malaysian companies will offer you to cover your car as long as it is not very old. This means that if your car is new or used, you can insure it at an additional cost. The value of the policy depends on the value of the car, which will be decided by a representative of the insurance company.

Keep in mind that there are a few insurance companies that are unwilling to cover vehicles over 10 years old. Indeed, the value of the repairs which the car could need can prove to be higher than the amount of the premium of your insurance. However, a newer model might still be financially viable for the insurance company.

The final verdict

Ultimately, it is your financial situation and your preferences that will decide the model and condition of the car you want to purchase. However, our advice is not to flip a coin on this one and carefully read all the options in front of you and then make a well-calculated and informed decision. So what will it be? A new car or a used unit?

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