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Comparison Analysis Brand New vs. Second Hand Car
Comparison Analysis Brand New vs. Second Hand Car
Presented by:
Gicom, Angelica F.
Featuring
Price: P 845,000
Body Type: Sedan
Fuel Type: Gasoline
Seats: 5
Transmission: Manual
Doors: 4
Price: P 420,000
Body Type: Sedan
Fuel Type: Gasoline
Seats: 5
Transmission: Manual
Doors: 4
Initial and Annual Costs of a Brand New and Second Hand Toyota Vios Car
INITIAL COST
Registration - -
Insurance - -
ANNUAL COST
Amortization 269,724/yr -
INITIAL COST
422,500
I. Down Payment
Based on 50% down payment
II. Registration FREE
ANNUAL COST
269,794
IV. Amortization
Based on 24 months of amortization
V. Registration 2,700
0 845,000 0 0 845,000
1 845,000 169,000 169,000 676,000
2 845,000 135,200 304,200 540,800
3 845,000 108,160 412,360 432,640
4 845,000 86,528 498,888 346,112
5 845,000 69,222.4 568,110.4 276,889.6
Amortization
LTO Registration
Comprehensive Insurance
Maintenance Cost
Fuel Cost
( ) ( ) ( ) ( ) ( )
Table 3.0
INITIAL COST
II. Registration -
ANNUAL COST
2,700
IV. Registration
2,000
V. TPL Insurance 950
0 420,000 0 0 420,000
1 420,000 42,000 42,000 378,000
2 420,000 37,800 79,800 340,200
3 420,000 34,020 113,820 306,180
4 420,000 30,618 144,438 275,562
5 420,000 27556.2 171,994.2 248,0005.8
LTO Registration
Comprehensive Insurance
Maintenance Cost
Fuel Cost
( ) ( ) ( ) ( ) ( )
558,302.92
CONCLUSION
There are pros and cons of buying both new and used cars. New cars often come with special dealer offers and full warranty,
which means youre generally covered for repairs and parts if anything goes wrong. On the other hand, used cars are generally cheaper,
but their histories can be difficult to check and you simply dont know how well it has been treated. Thus, it is essential to check or inspect
the used car first before you negotiate to buy it. You can also take the car to a trusted mechanic for a thorough inspection.
By looking beyond the sale price and considering the total cost of buying a car, you can get a better idea of how much you are
really going to pay for the privilege of being the first owner of your car.
From the results and calculation, the second hand 2012 Toyota Vios is more economical than the brand new one. It is also
observed that depreciation doesnt happen at a constant rate, the new car loses value fastest the moment you buy it and then it will move
at a constant rate after few years. The brand new car loses 20% of its original price on the first year while the second hand car only loses