2022 car purchase plan! Should I buy a new automobile or a used car for my first car?

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I believe that many people contemplating the purchase of their first car have become entangled in the end, whether to buy a new car or a used car at a more cost-effective price. Buying a car is frequently second only to the high unit price of buying a house in terms of most people’s life consumption. Because buying a car is such a major purchase, much like investing or managing your finances, you must first comprehend before making a decision. You can choose if you are more fit for buying a new automobile or a used car based on the advantages and disadvantages of the two based on your own situation based on the advantages and disadvantages of the two.

I recommend second hand car in Malaysia like cam placer

The following is the video version’s content; the article can be read quickly, but the video will be more visually appealing!

The new car’s pros and disadvantages

The most appealing aspect of purchasing a new car is the improved experience. You can pick according to your demands, regardless of the colour or equipment of the car. In addition, the quality has improved. In the new car, there will be no records of accidents. Don’t be concerned about whether it’s a water car or how it looks. Wear. Furthermore, the warranty and maintenance system on the new automobile is relatively sound, and the cost of maintenance is relatively low. There are still opportunities to save money when negotiating with a car dealer while buying a car.

It’s important to periodically inspect your vehicle for maintenance, ensuring a smooth and safe ride. Make sure you don’t forget those regular car checks!

The most significant disadvantage of purchasing a new car is the high total cost and rapid depreciation. Even if there are numerous preferential schemes to decrease the entrance threshold, the final payment is still very burdensome, and after the new automobile is listed on the first day, its value has depreciated by 5%. 10%, and subsequently depreciates at a pace of roughly 15% every year. The depreciation rate will slow down to roughly 810 percent per year until about 35 years, when the discount is about half the price, which indicates that the newer the automobile, the more depreciation.

The benefits and drawbacks of old automobiles

Of course, the largest advantage of a used car is that it is less expensive than a new car of the same model, and the insurance premium is also less expensive, but the process of purchasing a car and maintaining it is not as straightforward as it is with a new car. Buying a new automobile means getting 100 percent of the car’s condition for 100 percent of the money, whereas buying a 3- to 5-year-old car means getting 80 percent of the car’s condition for 60 percent of the price. Check good condition car as volkswagen polo sedan

Whether it is “used cars”, “used cars” or “new and old cars” that some car dealers love to use, most of them have been used for a period of time, especially used cars over 3 to 5 years old, whether it is a steering wheel, leather chair, or gear lever Or the center console, etc., there must be traces of use or some small defects. In addition to the condition of the car, various parts in the car will also be worn to a certain extent. Therefore, in terms of maintenance and repair, a second-hand car may cost more money and time than a new car, and this is one of the costs of buying a second-hand car. For this reason, it is very important to find a reliable second-hand car dealer and inspect the car carefully when buying a used car.

How to evaluate whether you should buy a new or used car?

Since buying a car is a big expense, the “budget” will naturally become one of the most critical considerations when buying a new or used car.

For those who have no problem with the budget, of course, anyone will want to buy a new car, and there is no question. Few people are forced to abandon their plans to buy cars due to insufficient budgets or reluctantly buy cars with lower grades or undesirable models.

However, for people whose budget is stuck in the middle and don’t know whether to buy a cheap new car or a higher-grade second-hand car, in addition to the budget, there are four key points to evaluate how they should choose.

Driving ability:

If you are a novice on the road, you are just starting to drive and you are economically able to drive, then you will be more recommended to buy a second-hand car. Novice drivers are always more likely to injure their car. New cars are not only more stressful, but also more expensive to repair after bumps. Second-hand cars are at least less heartache when they are injured. It’s not too late to change to a new car.Awareness of the car:

Since second-hand cars may face more maintenance problems, for people who do not understand cars or are not interested in understanding cars, it may consume a lot of effort and waste money. If the ability in this area is weak, new cars Perhaps it is more suitable to reduce the chance of maintenance and being pitted.Driving preference:

If you are buying a car, you tend to drive it for eight to ten years. Then you can consider a new car. No matter the condition of the car, or the maintenance and replacement of parts, you will not encounter problems; but if the budget is not special If you are ample and don’t want to choose a car with too low configuration, or you like to change your car frequently to try new models, then the price-performance ratio of a used car is more appropriate.Economic Ability: After  buying a car, you have to pay for gas, parking fees and other expenses every month. So how much cash and deposits do you have and how much monthly income do you have? Can you afford the price and loan of the new car? Or do you have some deposits reserved for temporary repair costs for your car? All of these need to be pre-calculated and evaluated, so that you can’t afford to buy a car but can’t afford it.

Summarize

The most important thing is, after deducting these vehicle expenses and living expenses every month, how much of the remaining balance can be saved and used for investment and financial management? If you support the vehicle and daily expenses, you will become a moonlight clan every month, which will not only make your life lose the emergency buffer space, but also hinder the accumulation of wealth. Five or ten years later, you may find yourself without an old car. In addition, there is nothing in wealth. Whether or not you bought a new car, it will be an old car after all.

From the perspective of life planning, if you spend most of your income on your car too early, you will not be able to save your money as soon as possible to do investment and financial management. The compound interest effect that is lost over time is the greater opportunity cost. Therefore, your life and financial planning is the biggest thinking point. If your budget and financial capacity are tight, you may choose a lower-profile new car or used car first, and do a good job of financial planning and investment management. You can buy it after five years. A better car.

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