Getting a new car usually gives better peace of mind, of course.
But its not true that new cars never give trouble.....I've heard
lots of horror stories regarding new cars too (timing belt snaps
after one week, this not working, that not working, engine dies
suddenly, etc).
Getting a 2nd hand car depends on luck and skill. If you know how
to choose one, it can give you great value, lower price (thus loans
which are easier to handle, etc). Most second hand cars will need
basic maintenance just after taking over (servicing, brake check,
belts check, etc). But even new cars need such maintenance/repairs
sooner or later.
The typical depreciation of cars is not linear. They depreciate
most in the first year, followed by the second year, third year,
etc. Depreciation becomes more linear at about 5 years old.
Depreciation is very little in its 9th and 10th year. If you draw a
graph with value (y axis) and age (x axis), you will be looking at
a curve concaved from top view. Some cars can even lose as much as
40% of their value in the first year (I drive one such car)!
Whether the car is new or used, sooner or later, the same
maintenance and repairs costs have to be incurred. Again, its just
a matter of sooner or later.
OK, now for the interesting stuff 
1. I got my first car just before my NUS days (free of charge - I
was a spoilt kid 
). And yes, I
stayed at KE7. It was a piece of junk, but hey, it was a luxury in
those days for a student! When it rained, the was an inch of water
inside. The timing would run off every week (it had a carburettor
feed system). Brake fluid was leaking and I had to watch out for
it, etc. But ooooh....I learned a lot from my 3 years with that
car, so much so that I was never afraid of hard-to-maintain cars
after that. It was also interesting being hands-on. And being a
fresh driver, I could knock and dent the car and didn't feel
anything. As such, I would always recommend (as a practical
initiation) that first time car owners always get used cars. Learn
the hard way and be strong for the future.
2. A brand new OPC may not be the way to go. You could spend less
buying a used car (normal car, not OPC). When you graduate in a
short few years, the OPC may not be practical for you.....and if
you have outstanding loans, you will have difficulties selling it
(because the value of the car then will be less than what you owe
the credit company). This is a trap which many people fall into.
Believe me, most people will not keep their cars for 10 years.
They'll usually need to get rid of it for whatever reason (upgrade,
downgrade, damaged beyond repair, etc). This is why I recommended a
3-year loan in my previous post - because no matter how bad things
get, probably can tahan 3 years lah.
3. With a 3 year loan, you're protecting yourself. You don't run
much risk in becoming a slave to the credit companies, slave to
your job, slave to your other emotional commitments, etc. I've said
this subtly and hope you know what I mean.
I've owned 7-8 cars now....and the longest I've kept any car was 4
years (various reasons - damaged beyond repair, backside itchy for
upgrading, etc). Shortest was 8 months. Ok, but this time, I'm
gonna try to keep it till 10 years old. I'll try my best.....
