When you decided to buy a new car, for example, the brand new Honda City, many would tell you that you should buy a used Honda City instead.
Among some of the reasons are used cars are cheaper, and the insurance premium that comes with is also lower.
But is buying used car really cheap?
Besides having a lower price tag, used cars require higher maintenance and repair fees shall anything breaks down (think gearbox and engine), and a much higher interest rate (almost double) for hire purchase.
Moreover, it will be a complete disaster if you happen to purchase a flooded vehicle, which is proven to give the owner a lot of headache even after repair is done (apparently, water and wiring/electricity don’t mix well).
Why it’s a good idea to buy a new car?
Exactly what you wanted
When you decided to buy a brand new car, you know exactly what you want and what you gonna get.
Once you buy the car, you can expect to have a new car exactly what you expected — the smell, the sitting position, tip top condition, etc.
Unlike buying a used car, due to many uncertainty, you might not get a vehicle of what you expected.
Yes, new cars cost more (actually not that much once you factor in other calculations), but the value you get over long term, not just monetarily, can be much higher. For example, Honda City price Malaysia starts from RM 73,836.
Your bank is much more likely to give you a loan for a brand new car than for a used car. Plus new cars get better interest rates.
And you know that the lower the better, because that rate will stick with you for 5, 7 or even 9 years.
Maybe the most important reason is that you want to get a car that wouldn’t break down. Buying a brand new Honda car sets you free from any repair issues, so you can save a lot of time and money.
Note that all new Honda vehicles come with a 5-year warranty to offer car owners a worry-free car ownership experience.
And that’s why many are willing to pay slightly more for certainty and peace of mind.
The majority of us have enough stuff going on in our life, and constantly worrying about the car is the last thing we want.
With petrol prices going up, we know that new models are more fuel efficient. Right now for example, the Honda City and Honda Jazz bring Econ Mode and Eco Assistant to improve fuel efficiency with the push of a button.
This no doubt, will be an important factor determining the value of a car over the long term.
New cars come with a warranty, which offers car owners complete peace of mind.
Honda cars come with a 5-year warranty directly from the manufacturer, which means you can bring your vehicle to any Malaysia Honda Dealership if any issues arise.
On the other hand, used cars come with uncertainty — you may not have access to the maintenance log and accident records, and all you depend on is how well the previous owner cared for the vehicle.
Depreciation is without a doubt the number 1 reason why many people consider buying a used car. But depreciation is not what it used to be anymore.
The prices of new cars have dropped, and with several Honda Malaysia promotions going on, many buyers managed to grab a promotion and made buying a brand new honda car a perfect deal.
Plus with new cars, buyers are able to save a big amount on hire purchase interest rates, which can translate to thousands of Ringgit over the entire course of car ownership.
So nowadays, does it still make sense to buy a used car over a new one?
Buying a used car might save you money upfront, but over the long term it can cost you more.
You may want to consider spending a little more for a brand new car and avoid the risks of car repair, higher interest rates, etc.
Before making your decision, check out Honda Malaysia promotions and find out how much you can save.