Better buy new car or second hand?

[Liked]

I will be buying a car shortly. I am thinking of a Toyota Ractis that costs $180,000 new. Considering

1) that a new car comes with some years of free service,
2) the depreciation of cars,
3) the fact that previous owners might have used it badly,

would you suggest buying the car new, or looking for this (or a similar) car second hand?

I plan to keep the car for 10 years or something (until repairs and maintenance costs are too high).

[Skyhook]

If you plan to keep the car for 10 years, then buy new and you should be largely trouble free. You're asking way too much from a used car to be trouble free over that unusually long ownership period of a mainstream vehicles life. 10 years would be about the maximum usable life ( before upkeep costs become prohibitive ) for a very mass produced vehicle like this.

[Liked]

If you plan to keep the car for 10 years, then buy new and you should be largely trouble free. You're asking way too much from a used car to be trouble free over that unusually long ownership period of a mainstream vehicles life. 10 years would be about the maximum usable life for a very mass produced vehicle like this.

Thanks. I meant that I am not planning to use the car for only 1-2 years and then sell it, in which case I guess a second hand car makes much more sense.
If I buy it new I would expect to keep it for 10 years, but if I buy it second hand, I could sell it after (say) 5 years, and buy another second hand one.
Which option makes more sense?

[imparanoic]

I will be buying a car shortly. I am thinking of a Toyota Ractis that costs $180,000 new. Considering

1) that a new car comes with some years of free service,
2) the depreciation of cars,
3) the fact that previous owners might have used it badly,

would you suggest buying the car new, or looking for this (or a similar) car second hand?

I plan to keep the car for 10 years or something (until repairs and maintenance costs are too high).

I know an owner of a Ractis for the last 2 years, but they are growing family ( 2 kids now) and it's small car, pretty limited on features, I presume you going for entry level at that price ( considering it's market leader, prices for high especially considering the level of equipment) , so depreciation in HK is not that bad

the cost of running is pretty economic at 108bhp via 1500 cc, I believe it's 6l per 100km average

problem is that it's a bit overpriced, even the premium version close to HK$200k is underspecced ( extras include sunroof, leather steering, 15" alloys and marginally better stereo, BUT not rear brake disc ( drums are not as effective), no fog lamps, no steering control, no uphill brake management, stop start engine management or automatic sport mode, etc ), on the 2012, no even sd card slot on stereo, not even manual height adjustment on seats.

have you looked at it's competitors ( sometimes VW has special promotion on entry level Golf at HK$190k ( normally at HK$210k) much better equipment, more power 120bhp, yet at 5 per 100km due to DSG) such as Mazda 2, Honda Jazz (3d gen , just released) etc.

[Cho-man]

I know an owner of a Ractis for the last 2 years, but they are growing family ( 2 kids now) and it's small car, pretty limited on features, I presume you going for entry level at that price ( considering it's market leader, prices for high especially considering the level of equipment) , so depreciation in HK is not that bad

the cost of running is pretty economic at 108bhp via 1500 cc, I believe it's 6l per 100km average

problem is that it's a bit overpriced, even the premium version close to HK$200k is underspecced ( extras include sunroof, leather steering, 15" alloys and marginally better stereo, BUT not rear brake disc ( drums are not as effective), no fog lamps, no steering control, no uphill brake management, stop start engine management or automatic sport mode, etc ), on the 2012, no even sd card slot on stereo, not even manual height adjustment on seats.

have you looked at it's competitors ( sometimes VW has special promotion on entry level Golf at HK$190k ( normally at HK$210k) much better equipment, more power 120bhp, yet at 5 per 100km due to DSG) such as Mazda 2, Honda Jazz (3d gen , just released) etc.

I personally think a Mazda 2 or Honda Jazz would be better value-for-money for that category. Mazda 2 is great little car that enjoys good reviews and has a certain "spunkiness" to it despite its small size. The Jazz is also a good little car (and I will prefer that to the Ractis).

[Liked]

I know an owner of a Ractis for the last 2 years, but they are growing family ( 2 kids now) and it's small car, pretty limited on features, I presume you going for entry level at that price ( considering it's market leader, prices for high especially considering the level of equipment) , so depreciation in HK is not that bad

the cost of running is pretty economic at 108bhp via 1500 cc, I believe it's 6l per 100km average

problem is that it's a bit overpriced, even the premium version close to HK$200k is underspecced ( extras include sunroof, leather steering, 15" alloys and marginally better stereo, BUT not rear brake disc ( drums are not as effective), no fog lamps, no steering control, no uphill brake management, stop start engine management or automatic sport mode, etc ), on the 2012, no even sd card slot on stereo, not even manual height adjustment on seats.

have you looked at it's competitors ( sometimes VW has special promotion on entry level Golf at HK$190k ( normally at HK$210k) much better equipment, more power 120bhp, yet at 5 per 100km due to DSG) such as Mazda 2, Honda Jazz (3d gen , just released) etc.

Thank you. I will compare it to those. I will also have 2 small kids.

Still, better new or second hand, considering the depreciation and everything?

[imparanoic]

if second hand, avoid the dealers, no consumer protection here, better via official distributors , here is VW, the jetta 2012 is better decent, has real warranty ( unlike the dodgy dealers)

Volkswagen Hongkong

[Liked]

I personally think a Mazda 2 or Honda Jazz would be better value-for-money for that category. Mazda 2 is great little car that enjoys good reviews and has a certain "spunkiness" to it despite its small size. The Jazz is also a good little car (and I will prefer that to the Ractis).

I think the Ractis has more storage capacity than the Mazda 2? At least it looks that way. I need space for a push car and a small bicycle, and later for two small bicycles. I wouldn't buy a Honda, for some personal reasons.

[Cho-man]

if second hand, avoid the dealers, no consumer protection here, better via official distributors , here is VW, the jetta 2012 is better decent, has real warranty ( unlike the dodgy dealers)

Volkswagen Hongkong

How's their reliability? I know some older VWs had reliability issues, especially with their DSG gearboxes.

[Liked]

if second hand, avoid the dealers, no consumer protection here, better via official distributors , here is VW, the jetta 2012 is better decent, has real warranty ( unlike the dodgy dealers)

Volkswagen Hongkong

Thank you. Yes, the dealers put me off. Indeed, no consumer protection, and I don't know enough about cars to make an informed choice.

I checked the Volkswagen HK site, but the cheapest second hand is 160,000. For that price I can almost buy a new Ractis?