Everyone dreams of owning a car. But the biggest question that comes up while buying a car is – whether should I buy a new car or used car?
When you plan to buy a car you have a variety of options like models of cars, engine specifications, internal features, exterior features etc. But if you are going to buy your first car, you will also be confused about the new car vs used car.
This article will sort out all your queries related to new cars vs used cars. So don’t get confused about which one to buy instead read here.
New Car Vs Used Car: Advantages
1) Maintenance Cost
The new car generally comes with a warranty and will not require repairs in its first few years so the maintenance cost is automatically less. In a new car, no maintenance is required for 6 months to 1 year but there is some limited km after which you require service and the first 3-4 services are generally free and later paid.
While buying an old car it’s usually 5 to 8 years old and you have to change the engine oil at least 3 to 4 times annually depending on your running. There will be more expensive services like changing the battery, cleaning of air filters, changing the tires etc. The cost of repairing a used car can burn a huge hole in your pocket.
When you buy a new car the bank finance offers a lower interest rate which can reduce the amount of interest you pay over the life of the loan and it’s much easier to get a loan on a new car.
Consider taking a loan, the interest rate on an old car is much higher than on a new car.
3) Advanced Technologies
The new cars today come with advanced technologies and features which are up-to-date in terms of equipment and accessories.
If you are a tech freak and would want all the latest features then the used car will require updating the features which will cost you more because they will be outdated.
If you are technology enthusiasts it makes sense to buy a new car but if the technology doesn’t affect you much go for a used car.
The advantage of a new car is that it will have the latest technology engine. Today the car manufacturers are more focused on fuel consumption and lower emissions. So in the new car, you will get hybrid features and new features like IMT and AMT.
The used car needs to change the engine oil at least 3 to 4 times annually. It also needs services after 2 to 3 months depending on how you use the car. Also, the used car will have an engine of old technology which will consume more fuel and will give less mileage.
New Car vs Used Car: Disadvantages
1) Government Fees (Depends on State RTO Rules)
When you buy a used car you don’t have to pay for registration fees, road taxes, RTO fees etc. However, you have to pay an RTO transfer fee and provide other documents.
When you buy a new car you have to register it, give Road tax, give RTO fees etc.
2) Loss of Money
The main advantage of a used car is that when you buy a used car, you already get it at a second-hand rate and when you want to sell it again you don’t lose much after selling it.
The main disadvantage of a new car is that you lose money on it as soon as you drive it. After 2 to 3 years the car loses its market value to nearly half and you don’t get the money you have paid for it instead of getting a second-hand rate when you plan to sell it off.
When you buy a second-hand car it’s already old and has come into the market like 2 to 3 years back. You can easily find Reviews of that car model on the internet or get a review from a friend who is using the same car.
When you buy a new car you can see its review only on some selected sites, then you don’t get the true reviews. That’s a negative point when buying a new car if you consider the reviews.
4) Insurance Rate
The insurance rates of used cars are lower than the new ones. You would be paying a high insurance rate for your new car but if you have a used car the rates are lower due to its low depreciation value.
The insurance rates of new cars are higher than the used ones because they have a high depreciation value.
These were some of the main advantages and disadvantages of new cars vs used cars. There are some other factors to consider like:
- Colour – You will have a limited colour choice when buying a used car and have a wide range of colour choices while buying a new car.
- First car – If you are a newly learned driver then you will get conscious while driving and will worry about the new car’s looks and scratches. However, you don’t have to worry about the same in a used car.
- Social Status – Indian society is very concerned about social status so the new car reflects how rich you are. Whereas the used car will show that you can’t afford to buy a new car. But that is the thinking of one, it does not reflect who you are and what is your social status.
- Safety- One disadvantage of a used car is that it has limited options for safety. Whereas the newly launched cars are fully loaded with safety features.
- Monthly Payments – When you buy a new car the monthly payments will linger with you for years. Whereas in a used car you don’t have to pay monthly instead the amount will be less and you can pay it easily.
Buying a new car is a very tough decision so don’t get confused between a new car vs used car. As we have highlighted all the positives and negatives of New vs Used Car.