The Pros and Cons of Buying a Used Car and a New Car

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What is the choice?

Deciding on the brand

Buying a car is a huge decision for many people in a country like India. Not only is there an existing range of models and brands to choose from, but by the time you complete the choosing process, more models are launched.

Deciding on the price

The value of a car depreciates as soon as you buy the car and, of course, over time, so it is not an investment. So, you must be careful about how cost-effective it is. ‘How expensive the car is versus how many kilometres you would be driving it’ are a few things to be mindful of before buying a car. Or, ‘if you commute short distances daily, whether or not it is even worth buying a car’ – is a whole different dilemma you must think of.

Deciding whether you want a new or old car

Also, if you are opting to buy a second-hand car, you might have to consider factors such as maintenance and service costs, which are much higher, and mileage, which is low for an old or used car.

Advantages of buying a new car

The service and maintenance cost for a new car is much lesser than for a used car

Now, if you are buying a new car, you will have no maintenance costs incurred for the first six months to one year or for the first few 1,000 km. After which, you might require servicing. Also, the first few services are usually complimentary.

Features and technology are advanced in a new car

A new car with the most recent technology and features will be launched. When you buy a new car, the features are up-to-date in terms of equipment and accessories.

The interest rate for a car loan is higher for a used car

Getting a car loan is easy – new or old. But, the interest rate for a loan for an old car is much higher than a loan for a new car.

Disadvantages of buying a new car

No need to pay for the registration fee, road taxes, etc.

When you buy a new car, you have to pay registration fees, road taxes, RTO fees, and so on. However, when buying a second-hand or pre-owned car, you do not have to shell out money as they are already paid by the first owner.

The depreciation rate for a new car is much higher than an old car

The depreciation rate for a brand-new car is about 20% per year. And the maximum depreciation happens in the first three years of its purchase. Hence, in three years, even if you take the best care of your car, its value will decrease by at least 40%.

The depreciation rate of an old car cannot be exactly predicted as it depends on the damages and maintenance that would be determined while the car is being sold. However, the rate of depreciation for an old car is a lot less than for a new car.

For example, if you invest in a used car and maintain it well, you will be able to sell it for almost the same price in a year or two.

Advantages of buying a pre-owned car

Safety Tried and Tested

Most cars produced and launched in the last five years have quality and standard safety features like airbags, ABS, and reverse parking sensors. These are the primary features a consumer or a car user expects in a car. Interior-wise, these cars have a fairly decent music system with USB, Bluetooth, and AUX connectivity. If you are among the lucky ones, you might find a pre-owned car with additional accessories such as an amplifier, subwoofers, leather seats, reverse camera, and a touch-screen infotainment system – not to mention wheel alloys which can cost you a lot if you were to fix them on your new car! Why would you shell out more when you can readily avail yourself of such features of a new car in a nicely maintained pre-owned car?

Insurance Cost is Cheaper Than a New Car

One of the primary benefits of a pre-owned car is cheaper insurance costs, as the insurance premium reduces with the ageing of the car.

Best Choice for New Drivers

Used cars are undoubtedly the best choice for someone learning to drive or still new to driving – especially in a city. A few scratches or dents are quite common when you begin to start driving, and it is wise to buy a new car once you’re confident enough to take on the crowded Indian roads.

Disadvantages of buying a pre-owned Car

Opting for an older, used car can be economical, but it also comes with a few potential cons. Below are some key factors to consider when deciding if an older car is the right choice for you.

Maintenance Costs

Older, used cars may require more frequent servicing and maintenance, which can add up to be a little expensive.

To maintain an older car and to keep it running, especially if the car is 8 to 10 years old, you have to change the engine oil at least 3 to 4 times per year. There might be more cost-incurring services like changing the battery, cleaning the air filters, and so on. If the used car that you bought is not in optimal condition, then such costs can be quite high.

Environmental Impact

Updated Technology and Features

While buying a pre-owned car, which sure would be at least a couple of years old, you will get the features and updates of that period it was launched in – which is not a bad thing after all. You can always upgrade some of the features; however, that would cost you additional costs. So, if you are specific about the technology and relevance of updated features in the car, it kind of makes sense to buy a new car.

Conclusion:

End of the day, you have to decide whether a new car or a used car is best for you. Both new cars and used cars have their advantages and disadvantages. As long as you find a car that you like, it should not matter whether it is new or used.

Here, we have discussed the advantages and disadvantages of buying a new car and an old car. The above-given information is a product of our research and analysis. In case you have any other points that can be added to the list of information available above, please mention them in the comments section. Be smart, make smart choices.