Tips for choosing and financing a new or second-hand car
- Compare your options and choose with confidence
- Find the right car for you
- Explore smart finance options that suit your needs
If you’re thinking about a new set of wheels, you have a lot of options to pick from. But which car best suits your needs? Should you go for a new or second-hand vehicle and should it be electric, a hybrid model or one running on petrol, diesel or LPG? And what about the finance? Read this article, learn all about the important decisions you’ll be faced with and enter the showroom well prepared.
A quick look at the differences between new and second-hand cars
| Benefits | Drawbacks | |
| A new car |
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| A second-hand car |
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* Compared to the same model when bought second-hand.
Not sure whether to buy new or second-hand? Check out our tips!
Let’s start with the first decision: should you go new or second-hand? Both have advantages and disadvantages. We discuss them in detail below and offer some tips to help you make an informed decision.
A new car
Why go for a new car?
A new car offers convenience, freedom of choice and peace of mind. You can customise it entirely to your style and needs – from its colour and engine to all kinds of optional extras. You drive a car equipped with the latest technology and usually also a more economical and eco-friendly engine. And you get to enjoy a longer warranty period and lower maintenance costs in the first few years. This does of course come with a price tag.
New cars are generally more expensive to buy and insure – especially if you take out comprehensive insurance – and delivery often takes several months. Another important aspect to consider is that a new car’s value drops 40% on average in the first two years.
An electric vehicle, a hybrid model or one running on petrol, diesel or LPG?
Electric vehicles are experiencing a surge in popularity. They’re silent, emission-free and low-maintenance. Plus, in Flanders, you’re exempted from paying vehicle registration tax and road tax.* While its motor is low-maintenance, the heavier battery does make the tyres more vulnerable to wear and tear. Another option is the plug-in hybrid, which combines a traditional combustion engine with an electric motor.
Vehicle registration tax and road tax are payable for this type of car, but due to its limited CO2 emissions (according to the WLTP), they are usually lower. Other options include traditional petrol, diesel and gas (LPG/CNG) engines. For these engine types, the amount of vehicle registration tax and road tax due depends on the model’s emissions and eco-friendliness.
* You have to pay road tax and vehicle registration tax for all cars except electric vehicles.
Financing your new car
If you have enough savings, using your own funds to buy a car is an economical choice as it’s interest-free and you instantly become the car’s owner. If you’d rather keep your savings for other priorities, you can opt for a car loan or private lease.
Bear in mind that, as attractive as a zero-interest loan from the dealer may seem, there’s often less room to negotiate a better deal or additional options. Sometimes your best choice is a regular loan and a handsome discount.
Remember, borrowing money also costs money.
A second-hand car
Why go for a second-hand car?
A second-hand car is often cheaper to buy and available more quickly. And since the insurance premiums are generally lower, unless you take out comprehensive insurance, you can sometimes find yourself a really good deal, especially with recent second-hand cars and stock cars.
On the other hand, you can’t choose its fittings, it may have hidden defects and you’re likely to spend more on maintenance. Always check the Car-Pass and have an expert inspect the car.
What about second-hand electric vehicles?
These too have seen a surge in popularity. While it’s cheaper to buy a second-hand electric vehicle than a new one, here are some things to pay attention to:
- Battery condition
- Driving range
- Warranty on the battery and electric components
- State of the on-board charger and gadgets
If you have your eye on a certain second-hand vehicle, we strongly advise you to take it for a test drive and have it thoroughly inspected.
What’s the best way to finance a second-hand car?
In this case too, you can choose to use your own funds, take out a loan or lease the car. KBC applies specific rates for second-hand vehicles. Different terms and conditions apply when buying a second-hand car, so be sure to seek proper advice before you make your choice.
How to make a smart purchase
Since buying a car is no small feat, be sure to take your time to compare the different models, take a test drive, ask relevant questions and don’t let anyone pressure you into making a decision before you’re ready. Pay special attention to the net price (after taking into account discounts and premiums) instead of the list price. Request several quotes and negotiate a good deal on additional options and accessories.
Whether you go for a new or second-hand car, an electric vehicle or one with a traditional engine, what matters most is that your choice is right for you. Seek proper advice, compare all your options, make a well-informed financing decision and drive into your future with confidence.
