5 questions to help you decide on a new or used car in Ghana


Are you planning or buying a car? You may want to ask yourself the following in making the choice between buying a new or a used car.

How long do you intend to use the car?

Generally, the longer you intend to use it, the newer the car you purchase should be. This is quite obvious.

How much do you plan to spend on the car?

A new car will usually come with a higher initial cost but you may spend less on repairs and  maintenance. A used car could come with undisclosed faults that could cost you more over its useful period but the initial cost is likely to be higher. The decision should depend on how much you have at the moment and your expectations of future inflows. Fuel efficiency standards have gotten tighter over the years so a newer car may cost you less in fuel.

How do you intend to finance the purchasing of the car?

When you’re purchasing a new car, you may be charged a lower interest rate on the loan because if you default, the value of the car can make up the balance. However, it is likely that a used car could rapidly lose value as compared to the outstanding balance of the loan, so the interest charged could be higher.

How much do you care about safety and comfort?

Newer cars meet more stringent safety standards and come with the latest technology. If you’re a no-frills type of person you could go for a used car without the techy stuff.

How much can you afford to pay on insurance?

Insurance premiums are based on the value of the car. So newer cars are going to cost you more in insurance premiums than older cars.


There are more questions that one can ask before taking the decision but I’m sure the above will help. If you plan to buy new or used cars in Ghana, you can do it on Tonaton.com, Ghana’s biggest classifieds.


Jerome Kuseh

Accountant | Economist-in-Training | Finance Blogger

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