3 Reasons Why Buying A New Car May Not Be A Good Idea

Home/Auto Insurance/3 Reasons Why Buying A New Car May Not Be A Good Idea

3 Reasons Why Buying A New Car May Not Be A Good Idea

In my last blog post, I wrote 5 good reasons why you should buy a new car versus a used car. But behind all the pros, there are also some cons as well.

In this post, I thought of writing a short post on 3 disadvantages of buying a new car.

1) Higher deposit required.

To purchase a new car, a person will obviously require a higher deposit or a larger loan. Interest on the car will definitely be higher, thus making the vehicle purchased costlier in the long run.

2) New car more likely being stolen.

New cars are more susceptible to being stolen as compared to second hand vehicles. An owner will then have to insure it for a higher sum of insurance. In the end, owners of new vehicles will have to bear higher financial costs.

3) Higher and faster depreciation.

Besides possessing a higher resale value, a new car also experiences a “depreciation” drop which can amount to anything from 25 – 30 percent initially. Compared to second cars, new cars which suffer from depreciation drop is normally borne by the first owner.

Should you now buy a new or second hand car? After considering all the advantages and disadvantages, you can now make your decision.

By | 2011-09-29T11:53:25+00:00 September 28th, 2011|Auto Insurance|3 Comments

About the Author:

3 Comments

  1. Zehan May 22, 2012 at 6:27 am - Reply

    Hi,
    I have a valid driving license but embedded into my new “Smart” NRIC, when I approached the inquiry counter, the guy insisted that I present a hardcopy of my driving license to them. How is that possible sine the national registration system is so “smart”?

    • Cikgu Yap May 24, 2012 at 9:45 am - Reply

      The smart IC cannot be read by police and other authorities now. You’ll have to use your old license still.

  2. Shahbaz October 6, 2012 at 11:01 pm - Reply

    Hi Cigku Yap,

    Having a bit of a problem, I was an international student in Malaysia but had to move to Canada suddenly because of immigration. I own a proton satria that I am in the process of selling but since I am not in Malaysia physically the transaction is being handled by a friend of mine.

    How can I get the transfer of ownership to work out in my scenario since I wont be in Malaysia myself?

Leave A Comment