Notice of service termination

Priceprice.com will discontinue all services as of June 30, 2021 (scheduled).
Thank you for using our services.

Click here for details

Brand New Car Vs.Second Hand Car

Don't flip a coin and decide if you need a used or a brand-new car. Priceprice.com has just collated an adequately detailed discussion between the perks of choosing and owning a spanking new or a second-hand car.

The brand-new cars' prices in the Philippines have notoriously gone up in 2019, sending local consumers to abandon some of their dreams to buy a new car. No thanks to the higher excise taxes imposed by the TRAIN or tax reform law, Filipinos who still harbor these dreams are now finding harder to afford a new car than a few years back.

Consequently, second-hand car dealers in the country have already expected more Pinoy buyers to get lured in the used car market. Such indulgence is quite sensible as this specific market comes with limited to the more affordable options. For one, used cars are logical, less expensive alternatives to new cars.

And so, one asks the more pertinent in this journey: Are second-hand cars indeed a wiser purchase than brand-new vehicles? Now, as ascertaining if it's a right choice differs from one car buyer to another, we're here to lead you whichever route you choose to take, whether you're about to buy a second-hand car or still on the hunting for a new one.

Why Buy A Second-Hand Car?

If you're already checking out some second-hand cars in the Philippines, the reasons below should finally convince you to take one:

1. Budget Vs. The Desired Model's Price

As an individual buyer, it's only customary that you're already eyeing a specific vehicle. But as most brand-new versions typically don't fit your budget, consumers are often faced with the next option, which is going for a pre-owned unit sold right a less pricey amount.

Nowadays, going for a second-hand car would save a buyer around 10% to 70% off a vehicle's original price tag. The price should vary depending on numerous factors, such as condition, age, and mileage. Should your budget permit, upgrading to a better model is also a possibility.

2. The Preference for Paying in Lump-Sum Cash is a Viable Option

The choice to pay interest, alongside monthly installments, is almost always inevitable when buying a new car. When you're on the hunt for a used car, however, there is that option to pay it in full amount in cash. For most, this is a viable alternative that is also more convenient.

3. A Phased-Out Model Can Be Purchased

Our third benefit should especially delight the country's resident vintage car enthusiasts. As it is, this should disappoint those who want to drive home a particular classic or discontinued variant as this option isn't present when buying a new car.

This also certainly rings true to buyers who happen to come with a limited budget but with a penchant for owning a vintage car.

4. Lower Insurance Costs are Provided

On paper, it only costs significantly less to insure a second-hand car than a brand-new vehicle. Under the same thought, these car insurance corporations consider a car's age, plus their fair market value, when a car's insurance premiums are computed. In essence, the higher the value your vehicle is toting around, the pricier it will be when it gets repaired due to collision.

Currently, several insurance providers do not accept applications for cars that are older than ten years. So, if you're trying to purchase a second-hand car, this must be considered.

Why Buy a Brand-New Car?

Despite the skyrocketing prices in today's local automotive market, people are still expected enamored by the lure of a brand-new car. The reasons are as follows:

1. A Car Loan Is Still As Beneficial As Ever

Now, while a full payment on a brand-new car should save a consumer from paying interest, the benefit of going for an auto loan is still a considerable weight off these buyers' shoulders down the line. The monthly amortizations aside, a longer repayment term is also guaranteed.

In the Philippines, the interest rates for brand-new cars are lower than the second-hand units. In local banking institutions such as BPI and BDO, they offer longer loan terms than the provisions one might experience when buying used cars.

2. Buying A New Car is Less Complicated

Buying a second-hand vehicle takes a lot more time and effort than just going for a brand-new one. From researching your alternatives, right down to actually making the purchase, the journey is equivalent to a hassle. No salesperson would assist you, much less do all the legwork.

All of that can change when one considers purchasing a brand-new car instead. Once you can pick a specific model, all you need to do is head to a showroom and schedule a vis-à-vis with a sales representative.

And voila! A tremendous amount of time and energy throughout the frequently tiresome process of car purchasing is mainly saved.

3. Say Goodbye to Frequent Repairs and Maintenance

Without going for the obvious, the most significant advantage of purchasing a new car is without a doubt its zero defect. And if there is ever any, such a vehicle is readily covered by the car manufacturer's warranty.

The hassle of going to the auto repair shop frequently, on the other hand, is only one of the inconveniences of owning a used car. Next in line, of course, is the cost that comes with it as old car parts are expected to wane in the process than the new ones. These disadvantages triple in annoyance when one only relies on this very car.

4. More Savings on Gas

One can only expect tip-top fuel mileage in newer car variants than older models. Whenever you're already at the point of reducing fuel costs, the universe should tell you that buying a new car is far more logical relative to this need.

Still, older models in terms of fuel-efficiency shouldn't be disregarded in this department as there is very much a slew of contenders that fall under this perk.

5. Benefits Those Who Are Such a Stickler for Their Cars' Longevity

If you happen to be one of those who want to keep your car until the end of time, then buying a brand-new vehicle makes more sense in this regard.

The reasons couldn't be more obvious. The resale value of new cars is easily a feature that can be swept under the rug. But for one who intends to sell his or her vehicle in the foreseeable future, its pricing is something that must be considered.

Top Five Factors to Consider When Buying a New Car

If you're already decided and ready to deal with buying and owning a new car, key factors to consider in the process are only but a natural development to follow suit.

The things right below are some of the crucial factors that you must consider:

1. Residual Value

As we've mentioned above briefly, the resale value of your new car is something you must take heed of should you be already harboring plans to resell it in the future.

For the uninitiated, the resale or residual value of a car is also known as the value of the vehicle, which is expected to depreciate over time.

When taking a good deal out of your new car's residual value, it is essential to determine which cars are launched alongside similar vehicles in the market. This is due to the lingering fact that depreciation happens ever quickly, despite your car belonging among the best-selling ones if it is announced with competitive entrants on the automotive market.

The best way to counter such inconvenience in the future is to allot time to do some research first. Subsequently, determining which cars boast the strongest of resale values must be inquired.

2. Cost of Ownership

Another thing to consider when buying a new car is its additional ownership costs. As it is, it is a must to know the price of its accompanying insurance, plus its fuel and maintenance, as these can all add up in years to come. For most, their car expenses shouldn't go beyond more than 15% to 20% of their total monthly budget.

Like the crucial first factor above, it is paramount that you check with your insurance company first to determine the expected modification of rates over time. This is especially needed as premiums get hiked up, depending on the variant and make of the car. In essence, the pricier your vehicle is, the more it should cost to insure.

In this regard, it is also essential to know that fuel-efficient vehicles save a considerable chunk of money in the long run. As such, you must know the pertinent details surrounding the essentials of fuel economy in a car to reduce your costs of ownership effectively. The same can be said with your car's maintenance costs. As an owner of a new car, one must have the know-how of the price and availability of its replacement parts, alongside consumer reports.

3. Incentives and Trade-Ins

For you get the best of your new car's incentive and trade-ins, you must first know when a dealer would clear out its inventory. Prospective buyers should also look into as to when these dealers would offer low-interest loans and other rebates. In the Philippines, these perks are usually up during the holiday season.

4. Price and Financing

Research is also vital when one should want to know the best rate of a new car. In the same vein, buyers must even understand the importance of perusing price comparisons, plus a detailed set of budget guidelines. When all of these are combined, the result most often ends at getting a reasonable price.

Top Five Things To Consider When Buying a Used Car

Like brand-new cars, the journey to finding the best-used cars is next to meticulous. But this route shouldn't be that complicated when one is equipped with only the right things to consider.

Right below are what we think are the most important if you're bent on getting one:

1. Test-Drive The Car

Akin to brand-new cars, buyers are also encouraged to take their chosen used vehicles for a test drive. Driving them at 40 to 50kph while stepping on the brake firmly yet smoothly would tell you a lot of things.

For instance, when there is any vibration that emanates from the brake pedal would mean that there must be an underlying issue with the car's brake rotors or might require new pads. Or when a used car swerves when you brake, that could also equate to aging steering components.

2. Check, Check, Check!

After test-driving the used car, a whole lot of checking must be performed. We've tallied the components that are crucial when checking is employed.

  • The body
    Clean the car first, then inspect thoroughly. Check for any rust on its surface. If there is any, that could indicate that the vehicle has been exposed to rain that often. Also, look for discoloration and scratches.
  • The engine bay
    Under the hood itself, you can tell about the car's overall body and engine.
  • The undercarriage
    The car's bottom could also allow you to see possible rust accumulation. A car lift or an inspection pit should let you check underneath it.
  • The tires
    Uneven wear on all tires should be an indication that the tires have not been appropriately rotated. Worse, this could also be caused by a bad wheel alignment due to varying reasons such as worn steering or even frame damage.
  • The interior
    If you're quite a stickler for style and convenience, you must know by now just how crucial it is to snoop around your used car's interior. Check for lumps in the seats as these are indicators that the interior has experienced a flood.

Conclusion: Brand New Vs. Second Hand

Preference and financial capability are but the most vital things that should dictate whether you'd end up with a used or a brand-new car.

Going for a brand-new car should almost always tie buyers up with a monthly amortization that can go beyond five years, relative to your downpayment. If your job is stable and your credit is history is right, and you are confident that you will thrive in it, then there's no question that a new car is for you.

But if you are one of those who are opposed to the skyrocketing prices and grueling monthly installments, chances are you're already eyeing on the best-used cars in your neighborhood.

Ultimately, it is always encouraged that you go and study your options first and make your resources be the determinant of your future decision. Whichever route you partake, we're sure that it is going to be all justified.

Also Read