New Car VS Used Car

Because of the fuel price getting higher, you need to consider which car is the most fuel efficient available in

Malaysia. If you are not worried with the fuel price, then think of another main criteria to choose your car. Maybe

you need spacious vehicle then go for MPV. Other criteria is performance, design, luxury and technology.

WHICH CAR IS RIGHT FOR YOU?

Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon

as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.

New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used

car and allow someone else to take that depreciation hit? The previous owner will have absorbed the steepest part

of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you

save on depreciation will surely go a long way.

Another benefit of buying used car in Malaysia is lower cost. By buying used car you pay less. You will also

save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about

paying sales tax.

As with everything else there are a few downsides to buying a used car. There are greater chances for costly

unwarranted repairs. You may very soon have to do major maintenance on your used car, including replacing

tires, battery, brakes, muffler, and perhaps even the transmission. A used car is usually less reliable. You don’t

know exactly what you’re getting into and how the previous owner treated the car. However, every situation is

different and some used models may actually be far more reliable than some new car.

Conclusion:

If you can pay cash, go with the new car way. Enjoy the feeling of knowing you’re the original owner of a new car

in mint condition. Nothing can replace that feeling.

Otherwise do not hang your hat higher than you can reach. Practice financial prudence. Save your money and

comfort yourself knowing that one day you will be able to afford that new car of the dream car. One day when

money is no object.

For info, interest rate for used car or used vehicle is around 4-5% per year. While new car, new vehicle or

unregistered car interest rate of loan is 2-4%. Usually for local or Malaysia new car interest rate is higher

than outside new car such as Honda, Toyota and Nissan.

-from kereta.info