Crash Test – New Car vs Old Car

It is always tempting to buy an older used car compared to a new car. With depreciation that can reduce the value of the car by 25% within a first year and around 50% by 3 years, buying a used depreciated car that is well maintain makes good economic sense. Besides paying a lot less for an older car, parts tend to be cheaper, you can service the car by your ole trusty mechanic rather than pay the franchise holder an jacked up service charges.

Bigger capacity cars tend to depreciate faster in Malaysia due to higher fuel consumption, insurance and maintenance cost. If you are thinking of buying an older car, think again. Perhaps a 10 year old car might be a bit too much.

Take a look at this video of a crash test between 2 Renaults Espace. The older one is just 9 years old versus a newer model.

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