It’s the age-old question that has (and will continue to) befuddle countless motorists – should I buy a new car, or should I go used? For most people, the appeal of a factory-fresh vehicle that has belonged to nobody but themselves is irresistible, but there will be those who will be swayed by some of the pre-owned offers out there. Here, we list some of the pros and cons of each.
Box-fresh car with full manufacturer support, but at a cost
Let’s start with the most obvious benefit of buying new – you’ll be the first owner of the car and receive the full manufacturer warranty (and, in some cases, free servicing) that goes with it. This is the period where the car is least likely to go wrong: there are no hidden surprises from past owners, and if an issue does arise, you can send it back to the dealer to get it sorted for free. It’s the ultimate safety net, which is particularly important if you’re a first-time car buyer or someone who is less mechanically inclined.
Buying a new car also affords you the latest in in-car technology – including the most advanced safety equipment available today – plus the all-important ability to show off to your friends and family the next time you balik kampung. All this comes at a (literal) cost, however, as the price of the car will be at its highest; you will also face a precipitous drop in resale value the second the car leaves the showroom, no matter the brand.
Cheaper used cars, more variety, no wait time
You’ll be able to avoid all of that by purchasing a used car. By its very nature, it will be cheaper to buy – someone else has already shouldered the bulk of the vehicle’s depreciation for you. This means it will be less of a burden for you financially, and if you decide to sell the car eventually, you will often be able to recoup most of the money you put into it.
The used car market is also awash with diverse options, including vehicles that have long been discontinued. Hankering after a sports car that was unaffordable a few years ago? Always thinking that they “don’t make cars like they used to?” Now you can put your money where your mouth is!
And then we come to the biggest upside of buying a used car in 2021. Demand for new cars has skyrocketed this year, thanks to easing COVID-19 restrictions and the government’s sales and service tax (SST) rebate. But while this has been good for the automotive industry, it is also putting a huge strain on factories already battered by the ongoing chip shortage. Waiting lists now stretch to months and even years as a result.
You won’t have to wait when it comes to a used car. The inventory is already there – all you have to do is provide the documents, sign some forms and, if you’re planning to take out a loan, await the bank’s approval. If you pay by cash, you could even drive out the lot the same day!
Higher interest, maintenance costs; unseen issues
There are, of course, the usual used car pitfalls. If you do decide on a loan, you will in all likelihood not only have to stomach a higher downpayment (there’s no “full loan” here, no matter what the salesperson says), but also a higher interest rate. Depending on the tenure of the loan, you may be paying more than what you would’ve paid for a new car in the long run.
You also won’t be able to ascertain the true condition of the car unless you bring along an experienced mechanic – even then, there may be issues that won’t show up during a short test drive or inspection. Also potentially hiding are parts that are on the cusp of failing, and if they do, you won’t have the manufacturer’s warranty to fall back on if the latter has already expired. Used cars are also harder to insure, especially if they are more than ten years old – in that case, you will almost certainly not be able to get first-party coverage.
myTukar AutoFair 2022 – benefits of used cars with fewer drawbacks
Thankfully, you’ll be able to stay clear of most of the risks of a used car if you buy one from at the myTukar AutoFair 2022 – held from January 7 to 9, 2022 at the myTukar Retail Experience Centre – Puchong South. This is set to be Malaysia’s largest used car event with over 1,000 pre-owned vehicles available, ranging from a Perodua Myvi to a Mercedes-Benz E 350 AMG Line.
Every myTukar purchase includes a one-year extended warranty and one year of free service – rare for a used car purchase. And if encounter an issue or simply change your mind about a vehicle, you can just return it thanks to the company’s five-day money-back guarantee – no questions asked.
If you purchase a car at the event, you will also receive an additional year of free service, loan interest rates as low as 1.68%, same-day loan approval and car collection and Trapo floor mats for all cars. myTukar will also be able to provide you with an on-the-spot trade-in offer for your current vehicle at the event.
Buyers will also be entered into the myTukar Lucky Spin Wheel promo to win one of six prizes, including a ninth-generation iPad; they’ll also be in the running to drive home in a Proton X70 Premium with myTukar’s 4th Anniversary Giveaway contest.
Visitors at the event will be able to enjoy refreshments and visit partner brand booths, among other attractions. There will also be strict COVID-19 prevention procedures enforced, including contactless payments and mandatory masks, full vaccination and social distancing. More information can be found at the official myTukar website, and you can also browse the inventory here to find what you’re looking for.
Looking to sell your car? Sell it with Carro.
Hot extreme Weather so wear n tear is too hi ultimately so bests advise is never ever buy 2nd hand car, (tday buy cheap n tomorrow disaster will come in terms of repair bill) and 2nd hand car dealers all r cheaters n liars bez of less or no enforcement so they play play always, more lies more sales
Used car dealerships also operate for profits like any other business enterprise. Better deal directly with the owner/seller, with caution of course. But watch out for used car salesmen/women who pretend to be the owner/seller…
Now with floods, best to check if those secondhands were one of those flood damaged cars.
You’re wrong, I have a 21 year old Mercedes and insurance for the car I have multiple options and they all offer first party insurance. Get your facts right please, or at least first party may not be offered for cars that are not worth much after 10years++. Educate us pls
I would love to know who your insurance agent is because I too have a 21-year-old Mercedes I am struggling to insure on a first-party basis.
Also, I did say almost certainly.
Me too. A 25 years old W210 E280 V6. Kindlt share which insurance provides 1st party. I dont want that much. 15k enough.
Look around, there are plenty to insure on a first-party basis.
It is clearly stated car less than 15 years old have no problem to get comprehensive coverage. Older than 15, 3rd party fire and theft. 20 years, 3rd party but the catch cannot even renewed online. Have to do it any branch or post office.
Maybe the agent just told him it is 1st party,but do he read his policy?
I usually go through Pos Malaysia to get the insurance, dont know if that’s the reason I’m able to get 1st party; granted the availability of insurers may be limited to about 4-5 options available . However currently I’m using MPI Generali Comprehensive and it was only about RM50-100 difference between 1st and 3rd party. Hence perhaps post Malaysia has more options for older cars ?
Don’t forget the risk of getting banjir car also.
Talk about new car price.. easily half of that figure is easily all sorts of goverment taxes (SST, customs excise duties, import tax). The actual car whether cbu or ckd could only cost around 1/3 of actual retails.
The rest is distributor margin (operational costs, dealer profit and salesman commision).
I bought a “brand new” second hand Honda Accord 5 years ago. It was a steal. The car was 5 months old with <5k km on odometer. The seller was a foreigner on My SecondHome program who need to return to his hometown.
The final price was 32k cheaper than new car.
Lucky me.