Let us recap on the advantages and disadvantages of buying a new car vs a used car in Lesotho.
Advantages of Buying a New Car
- Factory warranty
- No previous owners (and unknown accidents or mechanical incidents)
- Low financing rates usually available
- Few maintenance costs for 2-3 years
Disadvantages of Buying a New Car
- More expensive
- Immediate depreciation
- Unknown reliability for model year
- Higher tax and insurance costs
Advantages of Buying a Used Car
- Less expensive
- Slower depreciation
- Lower tax and insurance costs
- Reliability data available from Consumer Reports, etc.
Disadvantages of Buying a Used Car
- Unknown accident and mechanical history
- Higher financing rates
- Higher dealer markup
- Higher maintenance costs
On paper, the new vs. used debate seems fairly balanced. Financially, however, one can usually prove that buying used will save you some money – even when markups, interest rates, and maintenance costs are factored in.