Choosing your first or next vehicle wisely depends on your real needs and budget
For many in the lower income group, a common dilemma is whether to buy a new car or a used (second-hand) car. Both have their own pros and cons. The best choice depends on your lifestyle, long-term costs, and monthly financial commitments. Here’s a breakdown to help you make a smarter decision.
Advantages of Buying a New Car
Long Warranty & Peace of Mind
New cars usually come with a warranty of 3 to 7 years, sometimes with free service packages. This reduces maintenance costs in the early years.
Fuel Efficient & Modern Technology
New cars are equipped with more efficient engines and modern safety features like ABS, airbags, reverse cameras, and parking sensors.
Easier to Get a Loan
Banks are more willing to approve loans for new cars because they hold a higher value and carry lower risk.
Better Resale Value in First Few Years
New cars depreciate slowly at first, and having a warranty makes them easier to sell within the first five years.
Disadvantages of Buying a New Car
Higher Monthly Installments
The higher price means higher financial commitment, which may not suit those with unstable or lower monthly income.
Quick Depreciation
New cars can lose 20–30% of their value in the first two years alone.
Advantages of Buying a Used Car
Lower Price & More Affordable Monthly Payments
Used cars are budget-friendly. You can get decent models for monthly payments under RM500.
Lower Depreciation Risk
Since the car has already lost most of its value, you won’t face big losses if you decide to sell it again later.
Older But Reliable Models
Some older models like the Toyota Vios, Honda City, or Perodua Myvi are still durable and fuel-efficient.
Disadvantages of Buying a Used Car
Higher Maintenance Costs
Without warranty coverage, you’ll need to be prepared for repair or major service costs.
Risk of Hidden Problems
If not properly inspected, the car may have issues with the engine, transmission, or past accidents.
Harder to Get Financing for Older Cars
Cars older than 10 years may not qualify for standard bank loans.
Conclusion: Which Is More Worth It ?
If you want peace of mind, minimal maintenance hassle, and can commit to consistent monthly payments, a new car may suit you better.
But if your focus is low monthly installments and you’re okay with taking on some risk with occasional repairs, a quality used car is the more practical option.
Always calculate beyond the purchase price — factor in annual costs like insurance, roadtax, servicing, and fuel. Financial stability matters more than style. Choose wisely, drive safely.
Read more:
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