I Want To Buy a Car: Brand New or Used?

So far,  I've owned 3 cars in this lifetime (2 used, 1 brand new) and I sold every one of them. Haha! My first car was an old school 90's Toyota Corolla which I named "Midnight" 'coz of it's midnight blue color, the 2nd was a used silver Honda Civic (my favorite) which I named "Chloe", and the last one was a brand new gray Toyota Vios which I named "Sasha". To know more about my car story, read on to know more...

Now I just borrow my Dad's car whenever I really need it!

So I bought my first car, a used '98 Corolla by loaning money from a local bank. It was just a simple loan because the amount was not that high. My last car, a brand new Toyota Vios, was obtained through an auto loan (through my Dad) that had a term of P16,000 a month payable for 5 years. To be honest, I really had no plans of buying a brand new car because it's more expensive and it has a longer expense commitment vs used cars, but Nico wanted to use it for Uber so I said yes. Three years in he decided to sell it to his brother because he quit Uber and the expense became too much for the both of us. 

My 2nd car, Chloe! Bought this in cash so no hassle hehe

Also, ever since the pandemic hit, I don't usually go out that much compared before, so I really didn't feel the need to buy a car. Now, I'm debating with myself if buying a car is better than commuting with the gas inflation and all. When it comes to transportation savings, is it better to pay P100 per liter of gas (I just go out whenever there's an event or work) or do I just endure the overpriced Grab fares? Halp!

Now the question is, which car to buy? Brand new or Used? Here are the pros and cons..

1. Maintenance - buying a brand new car might be more expensive but at least you wouldn't have too much of a problem when it comes to maintenence. Buying used cars (especially when they're older than 5 years) comes with problems due to years of use. I remember how I always had my Honda Civic alternator fixed and how often my battery died! Didn't encounter that with my brand new Toyota. So less headache. 

2. Cost - I found it easier to buy used cars because they're cheaper and I was able to pay them in less than 1-2 years. Used cars also depreciate less because the first owner have already taken the largest depreciation hit.  But if you have the budget and you consistently earn enough every month, you can buy a brand new car with shorter payment terms and lower interest rates, but of course the amount will be bigger. 

3. Insurance - brand new cars have higher insurance costs versus used cars which cost less to fix or replace. 

4. Warranty - when it comes to this, brand new wins! If you buy used old model cars, they usually don't have warranty anymore meaning you shell out money whenever you have it fixed. However with new cars, you don't need that much fixing for the first few years, just maintenance. 

5. Technology - if you want better gas mileage and lower emission, and if you're after technology than the price, then buying a brand new car is the way to go. But there are also used cars which can cater to your particular need. The key is to research and test before buying! :)

Based on my experience, no matter which car you buy, one should always research, know your personal needs and have the unit checked by experts before buying! Check the mileage, any fixes done to the car or if it got submerged in flood water. Also make sure you have the budget and you have the financial capacity to pay it off. As for me, I think I'll stick to used cars moving forward.

That's it! Can't wait to own a new (used) car again soon! What's your car story? :)