New vs Used Car: Brisbane & SEQ Guide (2025)

Brisbane & SEQ quick take

In SEQ, used cars often win on value - but check for flood history and coastal wear, and price insurance before you commit. If you're comparing finance, even a small rate difference can change the maths.

Quick links:

• Car Finance Brisbane
• Brisbane Car Broker

---

Quick Answer: New vs Used Car Comparison

Factor	New Car	Used (2-3 years old)
Purchase price	$50,000	$35,000 (30% less)
First-year depreciation	15-20% ($8,000-$10,000)	8-12% ($3,000-$4,000)
Warranty	Full manufacturer	Remaining (if any)
Interest rate	6-8%	7-10%
Insurance	Higher	Lower
Technology	Latest	1-2 gen behind
5-year total cost	$60,000-$70,000	$40,000-$50,000

Best value: 2-3 year old cars from reliable brands save $15,000-$25,000 while still having modern safety features.

---

New vs Used: The Complete Comparison

It's one of the biggest financial decisions you'll make: buy new or used? There's no universal right answer—but there IS a right answer for your situation. Let's break it down.

The Real Cost of Buying New

The good:

• Full manufacturer warranty (5-7 years now standard)
• Latest safety technology
• New car smell (seriously, it's a thing)
• You know the complete history (it's yours from day one)
• Roadside assist included
• Choice of exact specs and colours

The bad:

• Depreciation—15-20% loss in year one alone
• Higher insurance premiums
• Higher registration (luxury car tax if applicable)
• Often finance new cars when cash is smarter
• Wait times for popular models

The Real Cost of Buying Used

The good:

• Someone else took the depreciation hit
• Lower purchase price = less debt
• Lower insurance costs
• Immediate availability
• More car for your money
• Proven reliability (issues already discovered by others)

The bad:

• Unknown history (unless well-documented)
• Warranty may be limited or expired
• Older safety technology
• Potential hidden problems
• Finding the exact spec you want is harder

Let's Do the Maths

Scenario: Buying a Toyota RAV4

Option A: Brand New RAV4 GXL Hybrid

• Purchase price: $52,000
• After 5 years: Worth ~$32,000
• Depreciation loss: $20,000
• Plus finance interest (if financed at 7%): ~$9,000
• True 5-year cost: $29,000

Option B: 3-Year-Old RAV4 GXL Hybrid

• Purchase price: $38,000
• After 5 years (8 years old): Worth ~$22,000
• Depreciation loss: $16,000
• Less finance interest (smaller loan): ~$6,000
• True 5-year cost: $22,000

The difference: $7,000 saved buying used—plus lower insurance and rego along the way.

When New Makes Sense

Buy new if:

1. You're keeping it long-term (7+ years) Depreciation hurts most in years 1-3. Keep it past 7 years and the curves flatten out. Your cost-per-year improves with time.

2. You want the latest safety tech New cars have features like automatic emergency braking, adaptive cruise, and blind-spot monitoring that even 3-year-old cars might lack.

3. Warranty matters to you The peace of mind of comprehensive warranty is worth something. Some people sleep better knowing everything's covered.

4. You want specific specs That exact colour, option package, and model variant? Sometimes you just have to order it new.

5. You're using novated lease New EVs especially make sense on novated leases due to FBT exemption. The salary packaging benefits can offset the new premium.

6. Popular models with strong resale Some cars (LandCruiser, HiLux) hold value so well that the new vs used gap is minimal anyway.

When Used Makes Sense

Buy used if:

1. Value for money matters most If stretching every dollar matters, used wins. You get more car for the same money.

2. You're a first-time buyer Your first car will probably get a few dings. Paying $45k to learn isn't smart.

3. You upgrade frequently If you like changing cars every 2-3 years, used makes more sense. Let someone else take the early depreciation hit.

4. Budget is fixed Better to buy a quality 3-year-old car outright than finance a new car you can't quite afford.

5. You want a higher-tier model A used BMW 3 Series costs the same as a new Corolla. If brand/features matter, used gets you there.

6. The model is proven reliable Models with known reliability (Corolla, CX-5, Forester) are low-risk used buys.

The "Sweet Spot" Age

2-3 years old, 30,000-60,000km

This is the Goldilocks zone for used cars:

• Biggest depreciation already happened
• Still has manufacturer warranty remaining
• Modern safety features
• Relatively low wear
• Often still on first-owner service plan

Example savings at sweet spot:

Car	New Price	2-3 Year Old	Savings
Mazda CX-5 Touring	$44,000	$34,000	$10,000
Hyundai Tucson Highlander	$55,000	$42,000	$13,000
Kia Carnival SLi	$67,000	$52,000	$15,000

Financing: New vs Used Differences

Interest rates:

• New car loans: Typically 6-8%
• Used car loans: Typically 7-10%

The slightly higher used car rate is usually more than offset by the smaller loan amount.

Loan terms:

• New cars: Up to 7 years available
• Used cars: Usually maxes out at 5-7 years depending on age

Deposit requirements:

• Lenders prefer higher deposits on older vehicles
• No-deposit deals more common on new cars

The Emotional Factor

Let's be real: cars aren't purely financial decisions.

New car feelings:

• Pride of ownership
• New car smell
• No previous owner's history
• Everything is pristine
• Choosing your own options

For some people, this is worth paying for. That's valid. Just know what you're paying for it.

Queensland-Specific Considerations

Climate impact:

• Used cars in coastal areas may have more salt corrosion
• Sun damage to interior and paint is common
• A/C systems work harder and may need attention

Market factors:

• 4WDs and utes command premium prices (regional demand)
• City cars (small hatches) are cheaper here than interstate
• Supply chain delays still affecting some new models

Our Honest Advice

For most buyers, used (2-4 years old) wins.

The maths is clear:

• Save 20-30% upfront
• Still get modern features
• Often still have warranty
• Less insurance and rego
• More cash in your pocket

But if you're keeping it 7+ years, using novated lease, or want the absolute latest safety tech—new can make sense.

How We Help at SEQ Car Brokers

We work with both new and used cars:

New: We negotiate fleet discounts on new cars, often beating dealer prices without the haggling.

Used: We search nationwide to find exactly what you want—inspected and delivered to Brisbane, Gold Coast, or Sunshine Coast.

Not sure which way to go? We'll run the numbers for your specific situation. No pressure, just honest advice about what makes sense for you.

Helpful resources

• RedBook: car values
• ANCAP safety ratings

Next steps (free help)

• Talk to our team
• Buy a car with our help
• Car finance options
• Brisbane car broker
• Used car inspection checklist
• Car depreciation guide

---

Frequently Asked Questions: New vs Used Cars

Is it financially smarter to buy used?

Yes, for most buyers. A 2-3 year old car typically costs 25-35% less than new while retaining 80%+ of useful life. You avoid the steepest depreciation (15-20% in year one) and often still have warranty coverage. The exception: if you plan to keep the car 10+ years or use novated leasing.

What age used car is the best value?

The sweet spot is 2-4 years old with 30,000-60,000 km. These cars have lost the biggest depreciation hit but still have modern safety features and possibly remaining warranty. Avoid cars over 7 years old unless they're known reliable models with full service history.

Do used cars have higher maintenance costs?

Not necessarily for well-maintained vehicles in good condition. A 3-year-old Toyota with full service history is no more expensive to maintain than a new one. Maintenance costs increase significantly after 150,000 km or when major components need replacement (timing belt, suspension).

Should I buy a new car if I can afford it?

If you'll keep it 8+ years, want the latest safety technology, prefer customising options, or can use a novated lease for tax benefits—new can make sense. But most buyers are better off saving $15,000-$25,000 by buying 2-3 years old.

Are used car warranties as good as new?

Remaining manufacturer warranty on a used car is identical to new—same coverage, same service. Once that expires, you can purchase extended warranty (though quality varies). Used cars from reputable dealers also include statutory warranty (3 months/5,000km minimum in QLD).