Is new always better?
They say that a new car loses around 20 to 30% of its value the very second it leaves the dealer’s floor. In fact, that’s the whole reason why South African insurer King Price offers decreasing premiums. Their whole premise centres on making sure that your premium corresponds with your car’s value and so your premium will decrease every month in line with the depreciating value of your car.
Before you head to the nearest second-hand dealership, remember that depreciation is just 1 factor. There are lots of other reasons for choosing to buy either a new or second-hand car and we’ve nailed the top 5 pros of either choice.
The top 5 pros of buying a new car
- Clean and accident-free = A clean history, with no accidents, and nobody else’s bum impression in your seat.
- Safety = Car manufacturers must stick to ever-stricter car safety laws so newer cars are much safer.
- New car = New warranty from the manufacturer, which is usually included with the cost of the car.
- Maintenance plan = New cars often include maintenance plans for a certain mileage or timeframe.
- Tailor-made = You have the freedom to ask the dealer to find the car with the colour and specs that you prefer.
The obvious con is that new cars are far more expensive and lose their value the moment you buy them.
The top 5 pros of buying a used car
- Cheaper price = Used-car prices are much lower than newer models, making them more affordable.
- Depreciation = There’s limited loss of value to a used car and you’re far less likely to worry about dings and chips than you would with a brand spanking new model.
- Cheaper insurance = A car’s age and value influence how much your insurance is, so a slightly older, less valuable used car will be cheaper to insure.
- Warranty = You won’t miss out on a warranty just for going the second-hand route, because you can buy a certified pre-owned car or buy a warranty.
- Choice = There are set options when you go new, but second-hand cars are available in their 1,000s online.
The obvious con is that there might be something about the car’s history that you don’t know about and, even if the used car was perfect before you bought it, something could go wrong due to age.
Regardless of whether you choose a new or a new-to-you car, make sure that you investigate the right insurance. Consider getting super cheap insurance from King Price and take advantage of their decreasing premiums. It’s the safe, cheap, and sensible way to do insurance.
If you don’t have their royal touch in your life and want to be prepared, then get a quote online or call their sales team on 0860 50 50 50.