Buying New VS Secondhand Cars

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New vs 2nd hand cars

Why buy it secondhand if you can afford it brand new? Many new car owners will ask that question at least once before they decide on a car.

There are a handful of factors you can consider when making the decision to buy a new or a secondhand vehicle. Among them, whether or not you can finance it with an auto loan, the cost of car insurance, or maintenance.

According to our figures, the Toyota Vios currently holds much of the automotive market share, with 44.3%. This means young car owners tend to choose the Vios as their first vehicle. To help you decide on your purchase, we took a look at which Vios would be worth the money – a new Vios, or a second-hand one. Here’s what we found.

NEw vs 2nd hand cars infographic

 

A Brand-New Toyota Vios
The new Vios remains a favorite, veering away from its formerly short design and looking like a sleek, sharp sedan.

Price
A brand-new Toyota Vios can cost PHP 812,000 for the 1.5 G MT variant, already loaded with the base tech and safety features.

Financing
Brand new vehicles usually allow for better financing. An auto loan for a brand new vehicle usually requires a 20% downpayment.

Insurance
New cars often come packaged with insurance, covering the car for some time. Annual insurance for a brand-new Vios on average is about PHP 24,756.32 with an Acts of Nature rider.

Maintenance
A brand new vehicle comes with warranty for a number of years and a certain amount of mileage. New vehicle warranties come with a preventive maintenance schedule that you should stick to. Expect to spend around PHP 3,500 for it.

Total Cost
On a brand new Vios, you’re looking at a base cost of PHP 837,000, and it could be higher depending on the add-ons you pick.

 

A Second-Hand Toyota Vios
The previous generation of Vios is characterized by it’s compact design. It’s also considered reliable, and low maintenance.

Price
A previously owned 2013 Vios 1.5 G MT variant can cost upwards of PHP 535,000 depending on its mileage.

Financing
Second-hand cars in general are cheaper if bought with straight cash. Financing via an auto loan requires a 30% to 50% downpayment.

Insurance
Insuring a second-hand vehicle may cost less owing to the fair market value on the car. The average annual cost of insuring a 2013 Vios is around PHP 20,849.45 with an Acts of Nature rider.

Maintenance
A well-maintained second-hand vehicle should have less maintenance costs compared to a brand new one, but parts may no longer be covered by warranty. You may end up paying more for parts.

Total Cost
Buying a well-maintained 2013 Vios will cost at least PHP 570,000 – but you may have to pay more for maintenance and repairs.

The Verdict
A new Vios will come with all the advanced tech you can expect out of cars out in 2015. However, Vios that’s been owned before can show its next owner just how reliable it can be. Overall, it depends on what you can afford, and what you really want in your car.