Four Critical Factors in Deciding Whether to Purchase a New or Used Car


The decision whether to buy a new or used car can be a tricky one. While buying a used car is cheaper, a new car provides a sense of value and pride. Your final decision will have a big impact on the value of your investment. Here are four of the most important things to consider:

1. Your Budget

These days, how much you have on hand when buying a car doesn’t matter much. Credit services are now easily available to help you finance your car purchase. But even with a loan, you have to consider the down-payment and monthly payments. Do your calculations and decide what monthly payments your income can easily afford. If your income is good, a new car will not be a huge financial burden. If you are more constricted budget-wise, you might have to start shopping for a used car.

2. Credit Status

Your credit status matters a lot when a lender is processing your request for car finance in Wellington. For buyers with good credit, it is often possible to buy a new car with little or no down-payment. This reduces the amount of money you need to have at that moment to drive off with a new vehicle. If your credit isn’t great, buying a new car will be considerably more expensive because a large down-payment may be needed. You may also have to incur bigger monthly payments. Decide whether your credit status means a used car could prove to be the smarter option.

3. Depreciation Cost

There is one very big cost that you may forget to consider… depreciation. Depreciation is the biggest cost incurred by car owners. When you drive off with your new car, it immediately loses 20 to 30 percent of its value. By the end of three years, most cars are valued at 50 percent of their original value. New cars undergo greater depreciation than used cars.

When you are weighing up whether a new car is better than a used car, consider whether you can handle the depreciation cost. Again, this will depend primarily on your income level.

4. Repair Costs and Time

A new car will often not need many repairs in its first few years of service. However, a used car is a different case. Even a good used car will wear out much more quickly than a new one and you can expect to spend a considerable amount of money on repairs relating to age.

Whatever decision you make, you will most probably need financing. And this is where Oxford Finance comes in. If you are in Wellington or surrounding areas and want to discuss car finance, then head over to to discover which services you can most benefit from.

Oxford Finance is one of the best and most reputable Wellington car finance companies. Experience the difference for yourself today.


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