Why New Cars Are Better For New Drivers

By Alexi Falson on 05 Aug 2021
image for Why New Cars Are Better For New Drivers If you're looking for the smartest option for your next car, is it best to purchase a new car or settle for a used vehicle, particularly if you're a new driver?

Today we’re going to unpack some of the most common myths surrounding new and used-car purchases, and see which is the best option to save you money in the long-term. This information is relevant for parents looking for the best car for their teenage son or daughter that just graduated to their P-plates, as well as anyone tossing up between purchasing a new or used car.

While the initial purchase of a new vehicle might be a steeper investment than a used car, a new car might actually save you thousands over the lifespan of the car, not to mention the technology and safety benefits that are on offer in new vehicles over ageing, used cars.

Is the purchase of a new car the smarter of the two choices? Let’s talk about it.

Benefit From the Latest High-Tech & Modern Features

One of the most obvious benefits of opting for a new vehicle over a used car is the sheer amount of technology that manufacturers are squeezing into their latest models. Opting for a new car over a used vehicle means that you’ll gain all the features and comforts of a modern vehicle, whereas you might be forced to make some sacrifices in a used car.

Best of all, features like infotainment screens with Apple CarPlay and Android Auto, reversing cameras, parking sensors and adaptive cruise control systems are now being included on even entry-level models of modern cars. Opting for a new vehicle means you gain the latest features and high-tech entertainment offers, making some other options in the used car landscape look immediately dated, and in some cases, less compatible with modern smartphones.

Safety Improvements

If you’re looking for the perfect car for your son or daughter that is now legally allowed to drive on their own, there’s no doubt that safety is a key, if not primary concern. Modern cars have been extremely safe for decades now, so opting for a used vehicle doesn’t mean you’re sacrificing too much in terms of occupant safety, however, these cars lack active safety technologies which can prevent accidents ahead of time. You’ve probably heard of things like autonomous emergency braking (AEB), rear cross-traffic alerts and lane keep assist, which are technologies fitted to newer cars that use cameras and sensors to prevent avoidable accidents.

These active safety systems are invaluable when it comes to keeping you and your family safe, and should be considered as one of the most important reasons to opt for a new car, considering even the cheapest variants come with a number of safety technologies as standard.

Long-Term Warranties

Undoubtedly one of the biggest advantages of purchasing a new car over a used vehicle is the buyer protections, in the form of a new car warranty, that you receive with your purchase. Typically, a new car warranty will include at least five years of protection, with some of the more competitive warranties offering seven and even ten year terms. That means that over the course of your ownership, you’re protected from paying for any repairs that are the result of the manufacturer. For purchases of used cars, Australian Consumer Law states that the new owner is entitled to a limited period of three-months or 5,000km worth of protection.

You can, however, purchase a used car with the factory warranty which can be transferred to new owners when a car is sold, but this does not include extended warranties which normally cannot be transferred to a new owner. We’ve unpacked all the details on new car warranties in a recent article that you can read here.

Lower Insurance Costs

Insurance companies generally offer lower premium costs when an individual takes out a policy for a new car, rather than a used vehicle. Insurance companies base their policy prices on a huge number of factors, and the question of whether or not the vehicle is new or used has an impact on the overall price of the policy. This is because of the fact that newer vehicles, as we’ve already mentioned, are packaged with more safety technologies, and insurance companies know which vehicles are more likely to be involved in crashes. These insurance companies recognise that new cars, fitted with autonomous braking, for example, are statistically less likely to be involved with simple rear-end collisions. The more safety equipment the car is fitted with will likely result in lower premium costs for the owner of a new vehicle, rather than a comparable used vehicle that is missing the same suite of safety technology.

Capped-Price Servicing Deals

Manufacturers are always competing to offer the most attractive ownership programs, which is why we’ve seen standard warranty terms extend to seven and ten-year periods, and the addition of capped price servicing with the purchase of a new car. These packages set out the terms and prices of minor and major services for a vehicle and sets out the maximum amount of money you’ll have to hand over for a scheduled service. So long as you stick to your scheduled service intervals, you’ll know ahead of time how much that service will cost you, which you can even view ahead of your purchase, and compare between manufacturers to find the best price.

These capped price servicing packages are typically valid for five years, and can be transferred to a new owner in the event of a sale, which is something to keep in mind if you’re purchasing a new car. For the maximum period of coverage though, purchasing a new vehicle is your best option. To find out more about servicing packages and how much they can save you a significant amount of money down the line, read our guide to capped price servicing deals.

Consumer Confidence

Perhaps the most important point to make here is the added confidence - and protections - a new car buyer experiences over purchasing a used car. When you purchase a new vehicle, the manufacturer guarantees its reliability over a long span of time. The purchase of a used car, on the other hand, is protected by a significantly shorter three month or 5,000km period, which is made more problematic by the fact that older vehicles are statistically more likely to experience mechanical faults. Opting for a new vehicle purchase gives you close to a decades-worth of confidence in the build quality and mechanical state of the vehicle, which makes it a more attractive value for money proposition regardless of what you’re saving on a new car purchase. 

Save Thousands in Car Financing

Lenders are much more enthusiastic about offering financing deals for new cars rather than used vehicles, which means you can secure a better deal with more competitive rates for the purchase of a brand new car over a used vehicle. On that note, if you’re in the market for a new vehicle, OnlineAuto can help find your dream car, organise a test drive at your home or workplace, and secure the most attractive financing options for you - all in one service. Find out more about OnlineAuto’s services and how we can help find the best price for your new car.


Alexi Falson

Alexi is an automotive journalist and road tester hailing from Byron Bay. He has an affection for both cars and motorbikes, a great admiration for the simplicity of old-school engineering, and a fascination of new technology making its way to modern cars. When he's not road testing, you'll find him surfing, hiking or helping people find their dream cars.

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