Car Finance in Australia: New vs Used — What's the Best Deal for You?

TWhen it comes to buying a car in Australia, one of the biggest decisions you’ll face is whether to purchase new or used — and how to finance it. While many shoppers are lured in by low advertised rates, the smartest deals are tailored to your financial situation and needs, not just a flashy number on a billboard.

Let’s break down the pros and cons of new vs. used car finance, and how to ensure you’re getting the right finance structure — not just the lowest rate.

🚗 New Cars: The Upside and the Reality

Pros:

• Latest technology and features

• Full warranty and lower maintenance risk

• Often eligible for manufacturer-backed finance programs

• Easier to insure with full coverage

Considerations:

• Higher purchase price

• Faster depreciation, especially in the first 2–3 years

• Some dealer finance deals may look attractive but include hidden costs or inflexible terms

Financing Insight:

A new car may suit you if you’re after reliability, long-term ownership, or have a business use case that allows you to maximise tax benefits. But don’t assume that dealer finance is your best option — your asset broker can often structure a smarter deal.

🚘 Used Cars: Value with a Few Caveats

Pros:

• Lower upfront cost

• Slower depreciation curve

• A broader range of options within your budget

• Lower insurance premiums

Considerations:

• Shorter warranty or no warranty at all

• Potential for higher maintenance costs

• May have stricter lender conditions (e.g. vehicle age limits)

  
  

Financing Insight:

Used cars can be great value — especially if they’ve been well maintained and you’re not concerned with the latest features. However, finance on used cars isn’t always advertised as aggressively, so it’s critical to compare the structure, not just the rate.

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