Is It Worth Buying A New Car?

When it comes time to buy a new car, most people automatically think of buying a brand new one. However, is that really the best decision? There are pros and cons to both buying new cars and used cars. Just like there are advantages and disadvantages of buying a petrol car versus an electric car. It’s important to do your research and figure out what is best for you before making a decision.

In this article, we will take a look at each option and help you decide which is the best choice for you!

Is it worth buying a new car in 2022?

It's no secret that prices of both new and used cars in Australia have increased over recent months. With the average purchase price of a new car in Australia now more than $40,000, and used cars not far behind, it's no wonder many car buyers are hesitant. However, the simple fact is that car sales figures are still relatively high. This means prices are not likely to come down significantly anytime soon. So, if you're thinking about buying a new car, it's best to start saving now!

There are a few things to consider when trying to figure out if it's worth buying a new car. The first is whether you can afford it. If you have the money saved up and don't need to finance the purchase, then it's worth considering. However, if you need to take out a loan or put the purchase on a credit card, it's important to factor in the interest you'll be paying.

The second thing to consider is what kind of car you're looking for. If you have your heart set on a specific make and model that's only available new, then you may not have a choice. But if you're open to the idea of a second-hand car, there are more options available, and you may be able to find a better deal.

The third thing to think about is whether you're looking for a long-term investment or something that will just get you from A to B. If you plan on keeping your car for a decade or more, buying a new one may be the better option since used cars depreciate more quickly. However, if you're not looking to keep the car for very long, you may be able to get a great deal on an ex-demo with only a few thousand miles on the clock or a second-hand car that's only a few years old.

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Is it worth buying a new petrol car now?

Electric cars are becoming more and more popular, with many people predicting that they will eventually replace petrol cars altogether. However, there are still a lot of advantages to buying a new petrol car now.

Purchasing a petrol car is less expensive

One of the biggest advantages is that they're generally cheaper than electric cars. Electric cars are still a new technology, and as such, they come with a premium price tag.

No wait times

Petrol cars are also much more widely available. Currently, in Australia, there is a several-month waiting period on certain electric vehicle makes and models.

No range anxiety

Another big advantage of petrol cars is that you don't have to worry about running out of charge. With an electric car, if you're not near a charger, you could be stranded. With a petrol car, you can just stop at any service station to refuel.

Of course, there are several upsides to purchasing a new or used electric vehicle. It all depends on your personal circumstances and what you're looking for in a car. Do your research and weigh up the pros and cons to make the best decision for you!

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What are the cons of buying a new car?

Let's weigh up the benefits and drawbacks of purchasing a new car versus an old car by first taking a look at why you shouldn't buy new one:

You'll lose money when you sell

As soon as you drive your new car off the dealer's lot, it will start to depreciate in value. So, if you decide to sell it a few years down the road, you're likely to lose a significant amount of money.

Your choices will be limited

If you're dead set on buying a new car, you'll be limited to the models that are currently available. If you're open to used cars, however, you'll have a lot more choice in terms of make, model and year.

You might have to wait

If you're looking for a specific make or model of car that's in high demand, you might have to wait a while before it's available. used cars, on the other hand, are usually readily available.

Now that we've covered the cons of being a new car, let's find out the advantages.

You'll get the latest features and technology

One of the benefits of buying a new car is that you'll have access to the latest features and technology. If you're someone who hasn't updated their vehicle in some time, you will be surprised by how much new cars have to offer.

You'll have a warranty

Another big advantage of buying a new car is that it will come with a manufacturer's warranty. This means that if something goes wrong with the car, you can get it fixed without having to pay for repairs yourself.

Running costs will be low

New cars are more fuel-efficient than older models, so you'll save money on petrol or diesel. They also tend to require less maintenance, so your running costs will be lower overall.

More competitive finance deals

If you're planning on financing your new car, you'll be able to take advantage of more competitive interest rates. This is because lenders perceive new cars to be less of a risk than used cars.

Is it better to buy an old or new car?

There are many reasons to buy a car new instead of second-hand. A new car is generally more reliable, as it will not have been subject to the wear and tear of previous owners. It will also come with a full warranty from the manufacturer, giving you peace of mind in the event of any problems. A new car will also have the latest safety features, which can be an important consideration when choosing a vehicle. Finally, buying a new car can be more enjoyable than opting for a second-hand model, as you will be the first owner and can enjoy that new-car smell!

On the flip side, the used car market can be very competitive, which means that car dealers and private sellers alike are motivated to offer a great deal to secure your business. You can often find a used car that's only a few years old and in excellent condition for a fraction of the price of a new one. This is because new cars depreciate in value quickly, so you can take advantage of this by buying used. Just be sure to do your research and have a mechanical inspection carried out before making any purchase.

Factoring in finance

Anyone who's in the market for a new or used car knows that there are a lot of factors to consider. Among the most important is how you're going to pay for it. For many people, taking out a car loan is the best option. And if you're planning to finance your purchase, it's important to know that rates are generally lower for new cars than for used ones. That's because lenders see new cars as a safer investment since they're less likely to experience unexpected repairs or depreciation. As a result, financing a new car can save you money in the long run. If you're considering finance as an option, be sure to keep this in mind.

Final thoughts

Whether you're looking for a brand new car or a used vehicle, it's important to do your research and consider all your options. Weigh the pros and cons of each type of vehicle and decide which one is right for you. With so many choices on the market, there's sure to be a perfect car out there waiting for you.

So, what's the verdict? Is it better to buy a new or used car? The answer depends on your needs and preferences. If you're looking for the latest features and technology, lower running costs, and a competitive finance deal, then a new car is probably the right choice for you. Buying a car is an exciting time. But it's also a big decision that shouldn't be taken lightly. Taking your time to find the best new or used car for you will save you money and hassle in the long run. And if you need help financing your new car, Driva's personalised rates can get you on the road sooner.

Declan Flaherty

As the Digital Marketing Manager at Driva you can find Declan during the day transfixed by a flurry of spreadsheets, mar-tech, Slack emojis and graphs all pointing in the right direction and keeping up to date with the latest car finance trends.

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