Subscribe to our newsletter, please? 

Reasons why you should sign up for the Moneymax newsletter right now:

✅ Get the latest Moneymax promos

✅ Find the latest credit card deals

✅ Weekly financial guides and tips

I agree to the terms and conditions and agree to receive relevant marketing content according to our privacy policy.

Success Tick Icon
Success! Thank you for signing up for our weekly Moneymax newsletter.

Is It Better to Buy a Brand-New or Second-Hand Car in 2023?

Ricky Publico

Ricky Publico

Last updated May 09, 2023

In the market for a new car? You might already have a dream car in mind—and chances are, it's a shiny, brand-new one. 

However, not everyone can afford their hefty price tags. It makes sense to consider second-hand cars as well—especially if you have a limited budget.

Used cars are obviously the cheaper alternative, but is it really wise to buy a second-hand car than a brand-new one? Or is it the other way around? The right choice between a brand-new or second-hand car varies from one buyer to another.

Brand-New or Second-Hand Car: Comparing the Costs

Before we split hairs between new and used cars, let's find out what they're worth first. Here are the top cars in the Philippines and their second-hand prices.

🚗 Toyota Wigo

Brand-New or Second-Hand Car - toyota wigo
  • Brand-new price: ₱578,000 - ₱705,000
  • Second-hand price: ₱330,000 - ₱528,000

Arguably the most popular small car in the Philippines right now, Toyota Wigo is also a popular choice for budget-conscious car owners. It's also relatively cheap when it's brand new, which means you can expect more savings when you buy a used or repossessed one.

🚗 Toyota Vios

Brand-New or Second-Hand Car - toyota vios
  • Brand-new price: ₱706,000 - ₱1,005,000
  • Second-hand price: ₱518,000 - ₱938,000

Are you in the market for a sedan? Whether you're buying a brand-new or second-hand car, the Toyota Vios provides the most bang for your buck—it's the reason why this model is one of the best-selling cars in the Philippines.

🚗 Honda City

Brand-New or Second-Hand Car - honda city
  • Brand-new price: ₱953,000 - ₱1,093,000
  • Second-hand price: ₱268,000 - ₱675,000

If you're looking for a car that has the right balance of affordability and fuel efficiency, then consider getting a Honda City. Aside from using it for your everyday drive, it's also a great option for car owners looking to apply for TNVS services. Either way, the Honda City is a great fit.

🚗 Mitsubishi Xpander

Brand-New or Second-Hand Car - mitsubishi xpander
  • Brand-new price: ₱1,068,000 - ₱1,198,000
  • Second-hand price: ₱746,000 - ₱1,088,000

Hatchbacks are perfect for big families and carpooling purposes. So if you're looking for one, add the Mitsubishi Xpander to your list. Don't want to spend more than a million? This is one of the best second-hand cars to buy in the Philippines.

🚗 Ford Ranger

Brand-New or Second-Hand Car - ford ranger
  • Brand-new price: ₱1,249,000 - ₱1,910,000
  • Second-hand price: ₱430,000 - ₱1,236,000

Big cars require big bucks and that's exactly what you'll get with the Ford Ranger. You'll definitely have to consider if you want a brand-new or second-hand car because it will set you back either way. But in the end, you'll get a sturdy vehicle that will last you ages.


What are the Advantages of Buying a Second-Hand Car?

Are second-hand cars worth it? And when is it good to buy a second-hand car? A used or pre-owned vehicle is a better option in these situations:

✔️ You Want Lower Car Insurance Costs

If you're still on the fence between buying a brand-new or second-hand car, consider the car insurance costs. And an advantage over the latter is that it is cheaper to insure. Car insurance companies consider a vehicle's age and fair market value when computing insurance premiums.

The higher the value of a car, the more expensive it is to repair the unit after a collision. But some insurance providers don't accept applications for vehicles older than 10 years, so consider that when buying a second-hand car.

Get a free car insurance quotation philippines

✔️ You Can't Afford Your Desired Model

If you have a specific vehicle year, make, and model in mind, but its brand-new version doesn't fit your budget, go for the next best thing: a pre-owned unit sold at a much lower price.

When you buy a second-hand car, you can typically save around 10% to 70% of a vehicle's original price, depending on factors such as age, mileage, and condition. If your budget permits it, you can even upgrade to a better model.

✔️ You Prefer to Pay in Lump-Sum Cash

Want to avoid paying the interest plus monthly installments on a car loan? If you can pay the full amount of a second-hand car in cash, then go for it! You'll get to save more that way with a second-hand car vs. a brand-new car, as long as the unit is in good condition.

✔️ You Want to Buy a Phased-Out Model

Buying a brand-new car isn't an option if you want to drive home a particular classic or discontinued model. For instance, you can find a car as old as a 1968 Volkswagen Beetle in the used car market for ₱100,000 or less. Vintage car enthusiasts, in particular, are the ones who benefit most from buying used cars.


✔️ You Plan to Resell the Car in the Future

When you buy a new vehicle, it loses 20% to 30% of its value as soon as you drive it off the dealership. In the first three years of owning the car, it may depreciate further by up to 50%.

Used cars depreciate less than brand-new cars. That's the greatest benefit of a second-hand car purchase—the previous owner of the car has taken the largest depreciation hit, while you, the new owner of the used car, will enjoy a low cost-to-resale ratio.

This means you can sell the second-hand car later for almost the same amount you paid for it, as long as you keep it well-maintained. If you have it customized, fixed, or upgraded with new features, you may even resell it for a higher price.

Read more: Where to Buy Second-Hand Cars in the Philippines? 8 Options to Score the Best Deals

What are the Advantages of Buying a Brand-New Car?

Brand-New or Second-Hand Car - Reasons to Buy a Brand-New Car

When it comes to the debate of whether to buy a brand-new or second-hand car, many buyers still favor new vehicles despite the higher prices—simply because these units have never been used.

Here are other reasons to purchase a brand-new car:

✔️ You'll Purchase via a Car Loan

Although a full upfront payment on a vehicle can save you from paying interest, getting an auto loan can make financing a car easier through monthly amortizations. If you buy a car through an auto loan, you can cut down the interest payment and get a longer repayment term by choosing a brand-new vehicle.

Interest rates for new cars are lower than those for second-hand units. For example, BPI auto loan interest rates[1] for brand-new cars range from 5.43% (12-month loan term) to 31.01% (60-month term). Pre-owned cars come with higher interest rates at 7.89% (12 months) to 44.32% (60 months).

Apply for a UnionBank personal loan via Moneymax

✔️ You Need a Car ASAP

It takes a lot more time and effort to choose between buying a brand-new or second-hand car. From researching your options to finally making the purchase, searching for used cars tends to be a longer process. No salesperson can assist you, so you've got to do all the legwork by yourself.

On the other hand, purchasing a brand-new car is a breeze. Once you've picked a specific model, all you have to do is visit a showroom and talk to a sales rep. This saves you time and energy throughout the car purchase process.

✔️ You Don't Want to Deal with Frequent Repairs and Maintenance

The biggest advantage of buying a brand-spanking-new car? Zero defects (in most instances). If there's any, the new car is covered by the manufacturer's warranty.

With a used car, you'll make more frequent trips to the auto repair shop, as old car parts tend to break down faster. That's a big hassle if it's the only car you own, and you drive it to work every day.

✔️ You Want to Save Money on Gas

Newer models generally have better fuel mileage than older models. So if you're trying to reduce your fuel costs, it's easier to achieve that with a brand-new car.

However, some older models are also fuel-efficient. Check if a second-hand unit is on sale.

✔️ You Have No Plans of Reselling the Car

Want to keep driving your car for years until it reaches the end of its service life? Then the car's future resale value won't matter to you as much as it would to someone who plans to sell their car later.

Cars depreciate over time. But if you simply want a reliable car that can last you for years, then buying a brand-new vehicle makes more sense.

Brand-New or Second-Hand Car Infographic

Final Thoughts

Should you buy a brand-new or second-hand car? There's no right or wrong choice—it all depends on your budget and preferences. May this guide help you decide on the better option for you.

Check Out Your Options for a Personal Loan through Moneymax

Finally decided between a brand-new vs a second-hand car? Before you make a purchase, compare your loan options and apply through Moneymax:

Personal Loan Provider Minimum Loan Amount Maximum Loan Amount Minimum Annual Income Approval Time


Compare Now

₱20,000 ₱1 million ₱350,000 7 days

Compare Now
20,000  ₱2 million 300,000 5 to 7 banking days


Compare Now

10,000  ₱150,000 120,000 As fast as 24 hours

Compare Now
50,000 ₱1 million 300,000 Apply online in just a few clicks

Compare Now
50,000 ₱1 million 360,000 5 to 7 banking days
SB Finance

Compare Now
₱30,000 ₱2 million ₱180,000 5 banking days

Compare Now
30,000 ₱1 million 180,000 24 hours

Compare Now
30,000 ₱500,000 or 3x gross monthly salary, whichever is lower 168,000 5 to 7 banking days

Compare Now
₱20,000  ₱1 million 180,000 3 to 5 banking days

Source: [1] Buy a passenger car

Ricky is the zaniest Product Marketing Manager at Moneymax, with over six years of writing experience in the digital marketing industry. He had written for SEO, cybersecurity, and other related industries prior to joining Moneymax. He also specializes in content writing, copywriting, and email marketing. He is a huge fan of pro-wrestling, One Piece, and smartphones in general. Follow Ricky on LinkedIn.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

Get the latest articles, promos, and deals straight to your inbox. Make us your weekly habit!