LAST week, I was in Osaka, Japan, which was a haven for secondhand shops of designer bags. Unfortunately for my wallet (and my husband), I’m one of the girls who enjoys the smell of brand new leather as well as cherishes the experience of shopping in a boutique.
He argued that due to the depreciated price and good condition of some used handbags, I should consider the secondhand shops. So we went to almost all the Brand Offs, Khomeyo, etc. shops along the covered shopping streets of Shinsaibashi and Dotonburi.
We also visited the boutiques, just to be able to compare.
I was trying to think of a foolproof argument to make him more malleable to buying in a boutique. The only shopping comparison I could make that he/men would understand is, of course, cars.
What are the pros and cons of buying brand new and secondhand?
Brand new
Pro: Easy financing. If you have a good credit line, buying a car would be easy because of all the tie-ups with banks and promos the car dealership offers.
Some brands even offer no down payment schemes, which is sometimes a stumbling block due to the large lump sum needed.
Pro: Taxable. Because you are buying from a company, taxes, and other items all apply. If you are a business owner, this important due to the sizable investment made when buying a car.
Pro: Warranties. Car companies offer a warranty on their products. People don’t. Usually, when you buy secondhand cars, it’s an “as is, where is” deal.
Pro: Newest gadgets. Usually, people sell their cars to upgrade, which means you are losing on the newest technology of the vehicles.
If you are the type that will line up for the release of the new iPhone, secondhand cars might not be for you.
Pro: Customized to your liking. On higher models, you can choose certain customization, like interior materials and color, entertainment options and even convenience features.
Con: Price. The brand new car smell comes with a price along with the premium of being the first owner.
Con: Depreciation. Smartasset.com cites that your car loses about 11 percent when you drive it off from the dealership.
Cars usually have a 3 to 5 years depreciation computation. So when you compute the value of money that you lose every year plus the roll out depreciation, the secondhand car wins.
Con: Higher insurance payment. Because of the higher value of the vehicle, insurance premiums will be larger, therefore adding to your initial investment.
Secondhand
Pro: Cost is lower if buying cash. If you are adept at scouring the internet for good deals, you will find vehicles that have run for less than 10 kilometers at 20 to 30 percent off.
This will not work, however, on vehicles that have high resale value. Sometimes the discounts on these cars are about 10 to 15 percent only.
Pro: Ability to buy higher makes and models at reasonable values. Some people don’t mind not being the first. What’s more important to them is to own a particular car make or model.
A person might not be able to buy a Ferrari 458 off the showroom, but if he is patient enough, he might get one in good condition, but perhaps older.
Con: Unknown history of the secondhand car. It might have gone through flooding, or someone may have died inside.
Worse, someone may have used the vehicle for his Guinness book of record quest for the most number of car action.
Unless you are going to bring a black light to all the secondhand cars you want to check out, you will never know.
Con: Harder to finance. If you do not have a VIP status with your bank, it will take time to get the papers signed and the money released.
Because of the nature of the negotiations especially for really good deals, this might be a deterrent or more frustrating for the buyer.
Closing argument
A closing argument I can add for buying something brand new, you get unique perks: the showroom experience and the flattery from the sales people.
For makeup, you get free samples. For cars, there are a lot of freebies. For shoes and bags, it’s a feeling of accomplishment when you get your perfectly wrapped purchase.
For all of the arguments I presented, and all the 15 kms of walking per day, I ended up empty handed.
It is really hard when you are not the type of person who settles. Instead of enjoying a new bag, I have to patiently wait for the next trip. My husband must be thanking his lucky stars.
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