Buying New or Used Cars

clickbuddy2009 · October 2014

Hi guys, what are your thoughts on this matter? Please just disregard all other things like saving for your housing loan or anything and just focus on the subject. And maybe share your thoughts in considering the type of vehicle you are buying esp. for individuals/ family with young children.

I have been reading about reviews of the pros and cons of buying new or used cars and I get a lot of mixed ideas. This will be my first time to purchase a vehicle here in AU and I still don't have much ideas on other cost other than the advertised price of the vehicle. What I know is that when you get your car insurance, if it's brand new then you will get a lower premium for as low as $55 per month. And for used car, it could go as high as $50-$100 depending on the age of your car. (Errr... I'm not sure about this either. Please enlighten me)

I tried to compute the monthly repayment of a brand new 2014 Mazda CX5 worth $33,000 and a used 2012 Nissan Xtrail worth $20,000. The difference is only around $200, and pano kapag isasama mo na yung insurance premium, fuel and maintenance cost? What do you think is more practical?

Isang option din is to buy an older one, perhaps 4-6 years older. Much cheaper pa ito pero you will get a higher numbers on odometer. Is it still practical?

Sabi nga ni @Filamokio, ang sasakyan ay extension ng bahay natin at ng pamilya. Ito ay minamahal, inaalagaan at iniingatan.

JCsantos · October 2014

I tried to compute the monthly repayment of a brand new 2014 Mazda CX5 worth $33,000 and a used 2012 Nissan Xtrail worth $20,000. The difference is only around $200, and pano kapag isasama mo na yung insurance premium, fuel and maintenance cost? What do you think is more practical?

To get an Idea on insurance get a quote from the internet .. key in the model and make of the car and viola you would have an idea how much the insurance , this is for green-slip ( compulsory ) or either you get a third party or a comprehensive

For maintenance cost they ussually give a capped pricing for maintenance ( yearly / 6months ) if you opt to have it maintained outside of the dealer the minimum i can see is 100$ ( depends if manual says you want it every 6 months or yearly )

For fuel you wont know unless you drive the car , like me ( bahay - school - grocery ) I get an average of 50 liters per fortnight multiply by average fuel price of 1.40 = 70$ so it's 1680$ a year

btarroja213 · October 2014

Hi,

For insurance premiums between different cars, it is not necessarily the age that matters but the safety features the car have. For example, given 2 the same cars A and B, and the only difference is car A has an ABS and car B does not. Then car A's premium will be lower. Putting a car alarm can also lower your premiums.

Now to answer the topic:

The thing that I do not like about BNEW carsis that you pay for the "BNEW extra fee". - which you cannot get back the moment you drive the car out of the dealer's parking lot.

The way to go is get a 2-3 year old car with low mileage from a dealer who certifies their used cars. Most of them will give a good deal for warranty and maintenance.

If you can do your own maintenance, make you to look carefully in your warranty agreement. Most of them will be void your warranty if they find out that you or an unlicensed machanic worked on your car...

joestrummer · October 2014

For me it'll always be the car which is 1-2 years old. Most likely only one owner handled it. like any other new thing, this is probably taken care of the owner in a special way as one would for a newly acquired property or car. The old owner used it for a year or two which probably is the best time to find out any factory defects on the car and of course cheaper than the new one. Whatever you save on this vs the brand new one, can be used for servicing and all that.

Nothing beats a brand new car of course para sa iba, so this is just me. Different folks, different strokes.

clickbuddy2009 · October 2014

I tried to compute the monthly repayment of a brand new 2014 Mazda CX5 worth $33,000 and a used 2012 Nissan Xtrail worth $20,000. The difference is only around $200, and pano kapag isasama mo na yung insurance premium, fuel and maintenance cost? What do you think is more practical?

To get an Idea on insurance get a quote from the internet .. key in the model and make of the car and viola you would have an idea how much the insurance , this is for green-slip ( compulsory ) or either you get a third party or a comprehensive

For maintenance cost they ussually give a capped pricing for maintenance ( yearly / 6months ) if you opt to have it maintained outside of the dealer the minimum i can see is 100$ ( depends if manual says you want it every 6 months or yearly )

For fuel you wont know unless you drive the car , like me ( bahay - school - grocery ) I get an average of 50 liters per fortnight multiply by average fuel price of 1.40 = 70$ so it's 1680$ a year

@JCsantos, thank you very much. As for the fuel consumption, I guess di pa kami mammroblema dito kasi nandito lang kami sa CBD area nakatira at ang opisina ko ay 5minutes walk lang from house. So bibihira cguro naming magagamit ang car pag weekdays. At kapag weekend naman mostly church at church fellowship lang naman ang lakad usually.

btarroja213 · October 2014

Ito po tips to lower your car insurance premiums:

http://www.skodafinance.com.au/tips-guides/popular/5-ways-to-save-money-on-your-car-insurance.aspx

clickbuddy2009 · October 2014

Hi,

For insurance premiums between different cars, it is not necessarily the age that matters but the safety features the car have. For example, given 2 the same cars A and B, and the only difference is car A has an ABS and car B does not. Then car A's premium will be lower. Putting a car alarm can also lower your premiums.

Now to answer the topic:

The thing that I do not like about BNEW carsis that you pay for the "BNEW extra fee". - which you cannot get back the moment you drive the car out of the dealer's parking lot.

The way to go is get a 2-3 year old car with low mileage from a dealer who certifies their used cars. Most of them will give a good deal for warranty and maintenance.

If you can do your own maintenance, make you to look carefully in your warranty agreement. Most of them will be void your warranty if they find out that you or an unlicensed machanic worked on your car...

@btarroja213, tama nga, I think the best option is to find a vehicle na 2-3years old with low mileage. Nakikita ko kasi kapag mga model 2012-2013, covered pa rin ng new car warranty.

clickbuddy2009 · October 2014

Ito po tips to lower your car insurance premiums:

http://www.skodafinance.com.au/tips-guides/popular/5-ways-to-save-money-on-your-car-insurance.aspx

@btarroja213, yung number 1 nga ata talaga ang pinakaimportante. Nabasa ko din na kapag madalas kang mainvolved sa accident, tataas ng tataas ang premium mo at di na yun bababa kahit pa magpalit ka ng brand new na sasakyan.

clickbuddy2009 · October 2014

For me it'll always be the car which is 1-2 years old. Most likely only one owner handled it. like any other new thing, this is probably taken care of the owner in a special way as one would for a newly acquired property or car. The old owner used it for a year or two which probably is the best time to find out any factory defects on the car and of course cheaper than the new one. Whatever you save on this vs the brand new one, can be used for servicing and all that.

Nothing beats a brand new car of course para sa iba, so this is just me. Different folks, different strokes.

@joestrummer, yeah tama ka. Nabasa ko din na kadalasang lumalabas ang mga factory defects ng sasakyan 1-2years time. So by the time na mapupunta ito sa next owner atleast nafigure out na ng first owner or ng dealer ung problem at naayos na.

Nothing beats brand new talaga lalong lalo na yung brand new smell (which is cancerous daw) hahaha...

gmad06 · October 2014

ive heard tips na maganda bumili ng transpo pag end of year til jan..in aadvertise po ba ng mga car dealers to or gradually babaan lng nila mga presyu?

btarroja213 · October 2014

ive heard tips na maganda bumili ng transpo pag end of year til jan..in aadvertise po ba ng mga car dealers to or gradually babaan lng nila mga presyu?

Actually mas mura daw towards the end of the financial year... so towards the end of June. Best to start hunting for prospects around May... :-D

gmad06 · October 2014

ive heard tips na maganda bumili ng transpo pag end of year til jan..in aadvertise po ba ng mga car dealers to or gradually babaan lng nila mga presyu?
Actually mas mura daw towards the end of the financial year... so towards the end of June. Best to start hunting for prospects around May... :-D

ganun..oh well tingin2x nlng ako ngayun baka maktsamba! lol

bookworm · October 2014

sa akin, might buy a really cheap car at first (budget of around 3,000) habang naghahanap ng trabaho, nag aaral magmaneho, etc. pag brand new or kahit 1-2 years, di practical pag ganun. Pag sanay na, settled na, at meron na mga 1 taon, tsaka na bibili ng brand new o certified pre-owned cars.

dhey_almighty · October 2014

@bookworm magandang car pa yan kung ang budget mo e 3000...sa budget na 1500 e maganda na...what more sa 3000 :-)

magsama ka lang ng mekaniko...at magaling ka dapat mam barat! :-)

bookworm · October 2014

@dhey_almighty hahaha maganda pa yun? buti naman. 2 pa kami maghahati dyan e. shared muna pansamantala.

clickbuddy2009 · October 2014

Maraming salamat po sa mga replies. Nakakuha na kami ng used car, it's a 2013 Nissan Xtrail T31 ST Wagon, 2.5L 4WD. Almost $10k savings din compared to buying a brand new vehicle. Covered pa sya ng new car warranty so medyo kampante ako na kapag magkaron ng sira ay dadalhin ko lang sa Nissan para mapaayos free of charge.

gmad06 · October 2014

Maraming salamat po sa mga replies. Nakakuha na kami ng used car, it's a 2013 Nissan Xtrail T31 ST Wagon, 2.5L 4WD. Almost $10k savings din compared to buying a brand new vehicle. Covered pa sya ng new car warranty so medyo kampante ako na kapag magkaron ng sira ay dadalhin ko lang sa Nissan para mapaayos free of charge.

@clickbuddy2009 magkano nbyaran mo pre? ksama na ba ang pag settle ng insurance ng car sa dealer mismo?

clickbuddy2009 · October 2014

Hi @gmad06, umabot ang total ng $23k including gst. Pinalagyan ko din kc ng tint at front and rear sensor. Un ang mali ko, kasi I later found out na mas mura pala kung sa labas ko na lang pinalagay ung mga un. Pero ok na rin kc may option ang nissan na you can pay more cash earlier para mas bumababa ung interest mo. The earlier and the more you can pay your dues mas bumababa ang interest.

gmad06 · October 2014

@clickbuddy2009 oh so yung finance na inavail nyo sa Nissan yun? not bad na kung 20k plus tsaka 2013 model..did u have insauranceon it?

clickbuddy2009 · October 2014

@gmad06, wala pa po kasama insurance yan. Mamaya ko pa malalaman kung magkano yung quote ng Nissan sa insurance. Kapag mataas, baka hanap na lang ako sa iba. RAC WA ata ang normally kinukuha na insurance dito. Unang interest rate na binigay sakin ng nissan ay 10.99%. Sabi ko sobrang taas nun. Nagpaquote din kako ako sa commbank at 7.99% lang bigay nila. Tapos binabaan ng Nissan ng 8.69% hanggang nagkasundo kami sa 8.5%. Pumayag na ako kasi may option silang residual payment. Sa bank walang ganun, kaya mababa na lang monthly ko sa nissan. Saka ko na problemahin ung residual payment ko after 5years.

gmad06 · October 2014

@clickbuddy2009 oo ok na yun pag may residual payment. enjoy ur new ryd!

btarroja213 · October 2014

@clickbuddy2009 @gmad06, ano yung residual payment?

@clickbuddy2009, congrats sa new ride! :-D

gmad06 · October 2014

yun yung certain amount na ideduct sa capital tapos towards the end na babyaran ng buo. ang good thing nito is hindi siya ksama sa amount na kunan ng interest. some finance company only allows you to a max amount to have as residual payment.depends..

clickbuddy2009 · October 2014

@btarroja213, residual or balloon payment ay parang magsset aside ka ng certain percentage ng total vehicle price, let's say 30%. Yung 30% amount na ito ay ibabawas doon sa principal amount at babayaran mo ito at the end of the loan term let's say 5years. Interest free din ito so ang papatungan lang ng interest ay yung total amount minus the 30%. Mababa na ang monthly payment mo nito, pero kelangan mo din paghandaan ung pambayad sa natitirang 30%. Pero magkano na lang naman ito kumpara sa 5years mong pagiipunan db.