Buying a new or used car

New cars are less likely to break down than used cars, and are likely to remain mechanically sound for many years after purchase if serviced correctly. They are also covered by a warranty which provides some certainty about future operating costs. New car warranties typically provide cover for 3 to 5 years and 60,000 to 100,000km.

Get the latest features

If features are important to you then a new car could be a better choice as they tend to come with the latest technology. For example, later models are more likely to have the latest safety and fuel efficiency technologies, driver aids and infotainment features.   

Fuel economy 

Every year car makers aim to improve fuel efficiency. This can translate to savings for those that buy a new car as they tend to be more fuel efficient. 

Depreciation

New cars are more exposed to depreciation which typically occurs more rapidly in the years immediately after purchase. For example, new cars can lose about 40 per cent of their value within the first three years. 

Superseded and Old Stock

Vehicles with the previous year’s build date (or earlier) can also be a good buy, as can a superseded model (one that’s been replaced by a new model). In determining if these vehicles are a good buy and what is an appropriate price for them, you will need to consider things like:

• when the vehicle was built
• how significant the change is in the new model's price and equipment levels
• how long you intend to keep it

 Tips when considering superseded or old stock vehicles:

• Generally, the longer you keep a car the less impact the earlier build date has on its value.
• If you regularly change cars, make sure the discounted price for buying superseded stock sufficiently offsets the lower trade-in or sale price you can expect when it comes time to sell.