Brand New or Pre-Owned ?

[DonT]

After reading a lot of discussions here about getting a brand new and a second hand...I just figured out how about discussing or comparing the actual cost of ownership of a Brand New or Pre-Owned.

Brand New Vehicle
Initial Value - Php 1M
Maint/etc - Php 2,000 x 4times x 5 years = Php40K
Fuel - Php 4K/mo x 12 x 5 years = Php 240K
Value after 5 years - Php 500K
Cost of Ownership - 500K+240K+40K = Php780K

Pre-Owned (5yr old)
Initial Value - Php 500K
Maint/etc - Php 5,000 x 4times x 5 years = Php 100K
Fuel - Php 5.2K/mo x 12 x 5 years = Php 312K
Value after 5 yrs - Php 200K
Cost of Ownership - 300K+312K+100K = Php 712K

Based on my assumptions...it seems that I will only save around 68K (780-712K) in total by getting myself a Pre-owned one.

PS: of course we should not forget to also consider the 500K which I saved by buying a pre owned car. I could have placed it into an investment which can double in 5 yrs.

Please feel free to make comments. I may have made wrong assumptions or missed them.

[suv]

Im not sure sa jan sa computation pero depends din sa brand ng sasakyan

Kasi dito sa pinas pag bumili ka ng 2nd hand na nissan and mazda sedans tapos ibebenta ulit para maging 3rd and 4th owned na eh lalo pa babagsak ang price.

Unlike Honda and Toyota na stable ang price.

Tapos hindi ako bibili ng pre-owned na tinakbo every year eh 12,000 kms. May mga nababasa ako na binebenta kotse na ang tinakbo na in two years pa lang eh 30,000kms!!! (Babaratin na yan pag ganyan :bwahaha: )

Mga 5,000- 8000 kms lang dapat every year para hindi masyado laspag.

Nothing beats a brand new car......Kahit TaTa Nano pa yan...

[DonT]

Tapos hindi ako bibili ng pre-owned na tinakbo every year eh 12,000 kms. May mga nababasa ako na binebenta kotse na ang tinakbo na in two years pa lang eh 30,000kms!!! (Babaratin na yan pag ganyan :bwahaha: )

Mga 5,000- 8000 kms lang dapat every year para hindi masyado laspag.

Nothing beats a brand new car......Kahit TaTa Nano pa yan...

Thanks for the comment..actually the figure for Fuel was for the cost and not mileage..I corrected my post and inserted 'Php'. Sorry sir.

[vinj]

Depends also if you're paying cash or financing and how old exactly is the pre-owned. When we buy 2nd hand we get a 1-3 year old model which hardly needs any repairs (just some preventive maintenance so the car is good to go at 200K-400K less than the showroom price.

[Djerms]

I want brand new pero for people like me na wala naman malaking budget and may knowledge naman about cars, 2nd hand is the way to go. Madaming madaling magsawa dyan, sandali lang nagamit, benta kaagad.

[mbeige]

Getting a pre-owned (used) car is more practical if and only if you know what you're looking for, and that troublespots the vehicle has acquired through the years have been taken care of. It's just as important that you know the maintenance history of the said vehicle. Other than that the only downside is the larger cost up front (pay by cash, etc) compared to buying new with downpayment that's easier on the wallet. Of course, finding the right car is another matter. But at least during your "hunt" you can experience various states of ownership/repair that you can also add to your list when scrutinizing the cars you want to buy.

Edit: For those of us based in the US where credit history and score are important, buying a new car adds up to that and can become an opportunity for you to still increase your score if you have a very stable job and can pay the bills on time. If your credit score is bad then that's one more thing to consider.

[pup2]

I want brand new pero for people like me na wala naman malaking budget and may knowledge naman about cars, 2nd hand is the way to go. Madaming madaling magsawa dyan, sandali lang nagamit, benta kaagad.

I agree with you. Plus, there are always advantages to being able to change cars every year or two -- huwag ka lang maloko. Tsaka bakit parang footnote lang yung 500K difference sa acquisition price? EH ang laki nun compared to TCO. Finally, I believe a well-maintained older car will have the same if not better FC than a new one lalo na on its first year -- sabi kasi ni Niky eh. hehe.