So you have decided to buy a new car, but have a lot of questions due to the dilemma of buying a new car vs an old car. Which one is more affordable? Which one has more value for its price? Is a brand new car really worth it? If these are the types of questions you have in your head, then you have landed on the right page.
This Kwiksure article, announcing our new infographic on purchasing new versus used cars, will briefly explain the contents in our infographic, which in turn will help you make the right decision on which type of car to purchase, brand new or second-hand car.
Things to consider when picking between a ‘New car vs Used car’
The infographic is divided into three parts, the left side is designated to new cars while the right is designated to used cars. The middle section is for the criteria that one should consider before making the decision. The criteria featured in the infographic are the following:
- Price
- Condition and maintenance
- Pre-purchase check
- Annual vehicle examinations
- Vehicle licensing fees
- First registration tax
- Insurance
To give you an idea of what you can expect, here are a few snippets from the infographic.
Price
It is fair to say that a new car will cost more than a used car. However, that statement may only be valid at the time of purchase. Used cars are more susceptible to damages. Therefore, the maintenance cost may cause an individual to spend more in the end. It is vital to take this factor into consideration.
Condition and Maintenance
New cars, among some dealerships, are offered free maintenance for a set amount of time. Used cars may pass the initial check-up but they are bound to get broken quicker due to their prolonged usage.
First Registration Tax
Generally, the first registration tax only applies to new cars, and used cars which are shipped from abroad. The car needs to be registered with the transport department. Some motor dealerships may even offer to register the car on your behalf. The value of the tax is based on the published retail price. However, those that purchase cars that are deemed to be environmentally friendly are eligible for a concession.
Continue reading: Tips to buy a car in Hong Kong
Car Insurance in Hong Kong
Cars that are high in value usually end up facing high premiums, due to the costs that the insurance company may face in the future. However, a good driving score can bring down the cost of your premiums. On the other hand, cars lower in value will face lower premiums.
Car insurance requirements in Hong Kong
It is compulsory that you have insurance when buying a car in Hong Kong. People can get either the third party car insurance, where the insurance company will only take care of the other car in the accident but not yours; or they can get the comprehensive car insurance which also covers your car. Getting comprehensive car insurance may even come with benefits, depending on the level of insurance you purchase. Benefits may include things like:
- No claims discount
- Vehicle towing and roadside assistance
- Cover for damaged windscreens
- Monetary payouts for totaling your vehicle
You can check out our car insurance page to get a free quote and some more information on third party insurance and comprehensive insurance.
Continue reading: How to buy insurance for your second-hand car
Continue reading: Top cars for P plate new drivers
Download our infographic
For more information and details, visit our infographic. Our experts have done an excellent job in making your decision on buying a car easier. On top of that, you should also visit our blog page to find more helpful articles like this one.
Contact us at Kwiksure today for some professional advice from our car insurance experts and get a free quote today.
