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Buying a New vs Used Car

11 April 2022

Buying a New Car vs Used Car

Buying a new car is an exciting prospect, whether you decide to purchase brand new or a pre-owned vehicle. If you've been debating whether to buy a new car vs used car, it's time to settle it once and for all. Both options have their advantages and downsides, but it's up to you to decide what your priorities are. 

Pros Of Buying a New Car

Newer Technology

Technology is evolving at an ever-increasing rate, especially in the automotive industry. Car models are constantly being upgraded, so you're always getting the latest improvements when you buy new. 

Newer cars may have better features, higher safety ratings, improved fuel economy, and enhanced performance.

Custom Choices

When you buy a new car, you can be really specific about what you want. Choose your make, model, and even the colour of car you'd like. There are limitless choices out there.


New cars generally come with a warranty so that if it breaks down or any parts need replacing within the next few years, the cost is covered for you. This offers excellent peace of mind that you won't have to foot the bill if anything is faulty.

Cons of Buying a New Car

Costly Insurance

Getting insurance for a new car can be pretty expensive. This is because you pay insurance for the amount you'd like to be reimbursed should you have to replace the vehicle. Therefore, as the price is more expensive, so are your insurance payments. 

Fast Depreciation

Did you know that a new car depreciates by as much as 60% across the first 4 years after purchase? That's a lot of money you're losing just for the privilege of buying a brand new vehicle. 


Overall, buying a new car is more expensive than buying a used one. You could pay tens of thousands of dollars to purchase a new vehicle. For some people, this cost is completely out of reach. 

What To Look For In A New Car

As you're buying a new car, you can start the hunt with any criteria in mind that are important to you. We recommend considering prioritising: 

The Safety Rating

As your car is brand new, there's no need to buy one with a low safety rating. Choose one that's at least 4 or 5 starts so that you will be as safe as possible if the worst happens and you're involved in a crash.

Reliable Brand

The more reliable brands may depreciate less than others. For example, many people look for Toyotas when buying used cars. Consider what people may want to buy if you wish to sell your car in a few years. 

Pros Of Buying a Used Car

Less Depreciation

Older cars depreciate slower than brand new ones. However, you can still buy a reasonably modern vehicle and enjoy lower depreciation rates. If you purchase a vehicle that's 4 years old, it can cost less than half of what it was new. 

For that price, you're still getting a modern car that likely hasn't been used all that much. Of course, that depends on how much the previous owners drove. 


Buying a used model could save you money on insurance. The cost of insurance is often much higher for newer cars as they cost more to replace than used vehicles. Pay lower premiums by buying a previously owned car.

If you are 25 or below, you will already be paying a premium for insurance, so you can save some money by buying a used car. 


Of course, one of the best things about buying a used car is that it's cheaper. Whether you're paying upfront or applying for a car loan, paying a lower price is very appealing. If you have a loan, it will take you less time to pay off than a larger loan for a more expensive car. 

Cons Of Buying A Used Car

Older Technology

If you buy a used car, it likely won't have all the latest modern conveniences. However, as long as it runs well, you should be fine. No one needs heated seat warmers, after all!

Limited Options

When you buy a used car, your choices are limited by what's for sale at the moment. It can be hard to find a car to buy if you have specific criteria, such as a manual transmission or a particular make and model.

No Guarantees

Used cars don't usually come with warranties. If something breaks down, you'll have to pay for it to be fixed yourself. 

What To Look For In A Used Car

Check The Odometer

If you buy a used car, check how many kilometres it has been driven. While it's not great if it's been driven 200,000km +, remember that it's just as bad to buy a car that's barely been used. Older vehicles that have been driven less than, say, 40,000km can present issues to the new owner. Problems may include rust and parts degrading over time. 

The AA offers odometer checks to verify the mileage if you're buying a used import. It's a great idea to get this done if you're importing the car yourself. 

Get It Checked

Make sure that you get the car thoroughly checked by a mechanic if you are buying privately. Or go through a car yard like Stadium Cars and they will have these checks completed before you buy the vehicle. This ensures that the car is in good condition when you receive it. 

Check If Money Is Owing On It

Sometimes, people will sell a car before paying off the car loan. You don't want the risk of buying a vehicle that is held as security against someone else's loan. So make sure that you check that no one owes money on the car before you purchase it. You can do this by checking it against the personal properties register. 

Buying a New Car vs Used Car

Deciding between buying a new car vs used car ultimately comes down to your personal preferences. If you can afford to pay more for the latest technology, top of the line vehicle, then you'll probably buy a brand new car. If you can't afford an expensive car but just want something reliable to get you from A to B without breaking down, then a used car is a great option. 

Get a Car Loan

No matter which way you go, ensure that you apply for a car loan with a competitive interest rate. Stadium Finance is the go-to money lender for many kiwis hoping to buy a car. Not only do we offer super quick finance, but we also do pre-approvals, so you know how much you can spend before you begin searching for a car to buy. 

Our NZ-owned and operated company is full of friendly staff who'd love to help you get your new set of wheels. Give us a call today to discuss your financing options, or apply online for a loan. You'll get a response within 1 working day. 

Once you've been approved, the money will be in your nominated bank account in no time, ready for when you find your perfect vehicle. 

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