When it comes to buying a car, you have a number of decisions to make. Not only do you need to pick the make and model of your car, but you also will need to decide whether you want to buy a new or used car. A brand-new car may have a better warranty and the latest technology, but it’s likely to be more expensive than a used car, and it will depreciate more quickly.
Used Cars are quite the most popular option in Nigeria. Buying a New car is very expensive so most people stick to buying TOKUNBO cars which are lighter on the pocket. Apart from being economical, used cars are very well put together, especially if they have been used wisely. The debate for new vs used has been ongoing for a long time; Tokunbo cars are a popular resort in Nigeria, but if you dig deeper most people would prefer buying “tear rubber”. We have come to put the debate to rest with this post.
- Warranty
The advantage of buying a new car vs. a used car is that new cars generally come with a warranty. The warranty should cover most major problems and repairs that crop up in the first few years of ownership. However, most new cars will require very few repairs in the first few years, so you can focus mostly on maintenance. What happens is that if you buy a car directly from a Toyota outlet in Nigeria, you get an automatic 2-3 years warranty on the car which isn’t like used cars.
Compare this to buying a used car, which may not be as reliable as a new one due to its age. You may need to do more repairs on a used car. These repairs are likely not covered under a warranty, as they would be with a new car.
As technology has improved, cars have become more reliable, and many models do not need repairs until they have been driven more than 100,000 miles. At that point, they may be close to 10 years old. This means that you could buy a used car that is three years old and sell it after five years without needing to do any major repairs on it. You may even be able to sell it for a price very close to what you paid for it. If you do buy a used car, you may want to set aside a little bit of money each month to cover any car repairs that come up.
- Price
New cars generally cost more than used cars. It is inevitable for that to occur. That is why most people prefer used cars to new ones. Price is the determining factor here. You can get a good tokunbo car for N4,000,000 but it will be practically impossible to get a brand-new one at that price.
- Technology
New cars will have the latest technology, which means that you may find cars with better gas mileage and lower emissions. More hybrid options are available as well, which can reduce the amount you spend on transportation each month. Plus, improved technology can make it easier to connect your smartphone, listen to music, or find your way with GPS.
- Depreciation
It is important to realize that buying a car is not an investment. Cars are assets that depreciate over time. When you buy a new car, it loses value as soon as you drive it off the lot. A new car takes its biggest depreciation hit in the first two to three years.
One advantage of buying a used car is that you let someone else—the previous owner—take the biggest depreciation hit on the car. By buying a used car and maintaining it well, you may be able to recoup a lot of your costs when it comes time to sell the car.
- Which Is Right for You?
If you’re more concerned with the latest technology than you are with price, a new car may be the right choice for you. And if you prefer to drive a car that’s still under warranty, a new car also makes more sense. One exception is if you choose a certified pre-owned car that has a warranty.
If you prioritize a low price and good value, buying a used car may be your best bet. No matter what you decide, you should either pay cash for the car or make sure that you can afford the payments if you finance it. One good rule of thumb is that you should be able to pay the car off completely within three years. If you cannot afford the payments at that rate, you most likely cannot afford the car.
Do your research and make sure that the model you are considering has good reviews and is reliable. If you know little or nothing about cars, then you should have a trusted mechanic look over the car for you, particularly if it is used.
Make sure you shop around for the best loan if you are borrowing money to purchase your car, and don’t be afraid to negotiate the best price possible for your car.
Frequently Asked Questions
Is a 10-year-old used car too old to buy?
How many miles should a used car have?
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