Step 2: How do you choose between a secondhand car and a new car?

Factor	New Car	Used Car
Buying convenience	No need to worry about evaluating the condition of the car	Can’t be sure of the condition of the car
Purchasing Fee	Price is all inclusive, dealer will handle the loan and insurance applications for free	Price quoted doesn’t include the processing fee which will vary from dealer to dealer. Make sure you check beforehand to understand specifically what your dealer is charging you for.
Repair and Servicing Costs	Major repairs in the first two years are unlikely if the model is reliable, plus the cost it may be covered by the warranty. Servicing may be free for a short period but will eventually be charged. Repair costs depend on the model and usage	Repair costs can also be low if the car model is reliable and in good condition. For much older cars one would expect higher repair costs, but these cars are also much cheaper in price
Loss in Market Value	High. Car loses up to 20-30% of its value within a year. For an RM80,000 car, this could mean a loss of RM35,000 within 3 years.	Much lower. Since the biggest drop in value of a car happens in the first year, the depreciation cost of a secondhand car is much less. But, the exact amount you can expect to save will depend on the price you are paying for the car
Insurance Premiums	This depends on the value of the car	This depends on the value of the car