The Great Car Buying Debate: New vs. Used Luxury Vehicles

Should You Buy a New or Used Sports, Prestige, or Luxury Car? We Explain What You Need to Know

When it comes to buying a sports, prestige, or luxury car, opinions vary widely. Should you go for a brand-new vehicle or opt for a used car that's only a year or two old? At Rumo Finance, we help Australian car buyers by offering tailored finance options for both new and used luxury cars. Here’s what you need to consider.

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The Case for Buying a New Sports, Prestige, or Luxury Car

New car buyers love to talk about the benefits:

Warranty: New luxury cars come with a comprehensive manufacturer’s warranty, providing peace of mind.
Reliability: A new car means no wear and tear, reducing the likelihood of mechanical issues.
Latest Features: Enjoy the latest technology, safety features, and design innovations.
Status Symbol: Driving a new luxury car can be a statement of success and prestige.

However, new luxury cars depreciate quickly. The moment you drive a new car off the lot, its value drops significantly. This depreciation is most severe in the first few years.

The Benefits of Buying a Used Sports, Prestige, or Luxury Car

This is where used car buyers feel confident:

Cost Savings: A used luxury car costs significantly less than a new one.
Depreciation: The previous owner has already taken the major depreciation hit.
Value: You can find used cars with low kilometres and some remaining manufacturer’s warranty, making them a great bargain.
Insurance: Insurance premiums are generally lower for used cars.

Financing Your Luxury Car Purchase with Rumo Finance

Whether you choose a new or used luxury car, Rumo Finance offers competitive car loans to suit your needs. Here are some tips to consider for each option.

What to Look for When Buying New:

Deals: Look for keen deals on the final price, especially end-of-year or end-of-model discounts.
Extended Warranty: Check for extended warranty options.
Options Package: Choose the best options package you can afford, including advanced tech and comfort features.
Reputation: Select a car with a known reputation for reliability and performance.
Resale Value: Consider future resale value – some colours and models hold their value better.
Servicing: Opt for cars with extended servicing intervals (15-20,000km).
Fixed-Price Servicing: Look for fixed-price dealer servicing plans.

What to Look for When Buying Used:

Condition: Check for good condition inside and out, including bodywork, leather seats, and luxury finishes.
Mileage: Low mileage is a plus – around 15,000km or less per year is average.
Service History: Ensure there is a full-service history from authorized dealers.
Functionality: Verify that all advanced features work, including infotainment systems, seat adjustments, and climate control.
Test Drive: Listen for unusual noises, check steering, suspension, and brakes.
Inspection: Use a torch to look under the car for signs of corrosion or damage.
Engine Check: Inspect the engine bay for signs of wear and ensure the oil is clean.
Ownership Costs: Consider costs like insurance, maintenance, and potential repairs.

Financing Made Easy

At Rumo Finance, we understand that choosing between a new or used luxury car can be challenging. Our team is here to help you find the best finance options to fit your budget and preferences. Contact us today to get started on your car-buying journey.

Whether you're leaning towards a new luxury car with all the latest features or a used one that offers great value, Rumo Finance has the expertise and options to help you make the best decision.