min read
· Posted on
February 21, 2024

Buying a new car: the good, the bad, and the exxy

Your pros and cons guide for the hot new wheels you have on your mind.

What's the key learning?

  • The main benefits of a new car include being able to customise according to your preferences, warranty for faults or defects, and lower running costs as the machinery is new.
  • The main setbacks of buying a new car include the higher price point, and faster depreciation than used cars.

You’ve been day-dreaming of a brand new car.

The crumb-less seats, speakers with a solid bass, and paint job in schmick condition.

But you’re not sure if it’s worth the spend for you.

Here’s your cruisy guide to breaking down the pros and cons of buying a brand new car.

New car - what’s the benefits?

  1. Choice

When you’re buying a new car, you can not only choose your preferred car make and model, but also the colour, and extra features you’re after.

You can customise the car by adding and removing features and benefits to make it exactly what you’re after.

Want a teal coloured car with leather seats and top of the range parking sensors? You can get it.

Plus you get that new car smell!

  1. Warranty

A new car hasn’t had any wear and tear. It’s looking shinier than your festival glitter. 

And because it’s new, it comes with a warranty, so any faults or defects you deal with can be repaired or replaced. 

Most cars come with at least three years of warranty.

Atleast there’s warranty
  1. Lower running costs

There are a couple of components here. 

For one, car insurance is generally cheaper for new cars, because new cars usually have higher grade safety technology and anti-theft locks.

A new car is also likely to have cheaper servicing fees as the parts are still in solid condition.

New car - what are the setbacks?

  1. The price - duh

You’ll be shelling out more for a new car than a used car which means it’ll take longer to save up for, or if you’re taking out a car loan it’ll be an additional load on your payslip.

  1. Depreciation

New cars depreciate fastest in the first few years of their life, so the value of your car goes down from the second you buy it.

Most cars lose 15% or more of their value as soon as they are driven out of the dealership, and up to 30% after the first year.

If you’re thinking about the resale value of your car, make sure to take depreciation into account.

So before you’re eyeballs deep into comparing car models, choosing extra features, arguing on car colour with your partner, and potentially assessing car loans, take note of the pros and cons of owning a new car.

With big investments like this, you want to be as informed as possible before signing off on a decision. 

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