New vs Used Car Loans: Which Should You Choose?
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New vs Used Car Loans: Which Should You Choose?

Financial comparison and decision guide.

New car loans

New vehicles often attract sharper rates and longer loan terms because the asset is newer and usually holds value better in the early years.

The downside is faster depreciation, meaning the car may lose value quickly even while repayments stay fixed.

Used car loans

Used cars are generally cheaper to buy, which can reduce the size of your loan and the total interest paid.

Some lenders set age limits on used vehicles, and rates may be higher depending on the car age and condition.

How to choose

Choose based on total ownership cost, not just monthly repayments. Compare insurance, servicing, warranty coverage, and resale value as well as the finance terms.