Friday, 11 January 2013

New car purchases - new v. used cars

Cars are one of the most expensive items you will ever buy, perhaps second only to a house.  But while a period house in a good location with original features and tasteful updates is frequently valued more highly than a cheap project home with a brand new kitchen and bathroom, there can be a certain stigma about a used vehicle.  This comes through even in the terminology – one doesn’t talk about a “used” house.  Applying the same economics to buying a car as one would a house, it’s hard to argue that a cheap Asian model with new plastic finishes is somehow better than a three-year old luxury car in immaculate condition that has been regularly serviced and only sold because it’s at the end of its lease.  However, there’s just something about that new car look and smell.

I’ve outlined some of the advantages and disadvantage of new and used cars below, as well as the middle variant, the demonstrator vehicle.