In today's auto landscape, the decision to purchase a car comes down to a choice between buying new or opting for a used car. While the new car market is undeniably booming, with a 12.7% increase in year-on-year sales, there are still many compelling reasons for why a used car is the smarter choice, particularly in 2024. From financial considerations, to the availability of high-quality pre-owned vehicles, the advantages of buying used goes far beyond just the initial cost. Let's dive into why purchasing a used car is not just a practical decision but also a savvy one in the current market.
The economical choice
One of the most significant advantages of buying a used car over a new one is the financial savings it offers. Cost of living continues to be a real issue in Australia, and opting for a used car can be a wise financial move. New cars frequently carry steep price tags due to inflation, interest rates, and supply shortages, compounded by showroom markups, rendering them out of reach for many consumers. Additionally, depreciation is a crucial factor to consider. As used cars tend to depreciate at a slower rate, buyers can expect greater value for money.
Dodging depreciation
New cars experience a sharp depreciation in value during the first few years of ownership. According to industry experts, a new car can lose 10-15% of its value the moment you drive it off the lot and up to 40% over five years. And that’s just in general, as depreciation isn’t created equal for all cars.
This depreciation hit can be substantial and is often unavoidable for new car owners. Compared to new cars though, used cars have already undergone this initial depreciation, meaning you can enjoy a relatively more stable resale value over time. This factor alone strongly supports why purchasing a used car is a wiser decision for those aiming to preserve more of their investment and resale value in the long run.
The choice is yours
Australia’s used car market offers a whole world of options for you to explore. Whether you’re looking for a compact city car like a used Kia Picanto or a spacious SUV for the whole family, there’s bound to be something that suits your preferences, lifestyle and more importantly, your budget. You'll also have the chance to explore higher-spec used cars equipped with added features such as roof racks, bull bars, weather shields, or ladder racks, for a fraction of their original cost. Unsure about which car is right for you? We’ve got just the tool to help you narrow it down.
Even better, with used cars, there's usually no waiting around. You can hop into your new ride in next to no time. Unlike with new cars, especially the popular ones, where you might end up waiting anywhere from 3 to 18 months just to get your hands on it. Opting for a used car means you can satisfy that new car itch and hit the road right away.
The best of both worlds
