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Car Comparison

New Car or Used Car: Which One You Should Buy?

New car vs used car

You must be having some preferences when it comes to purchasing a new car. Should I buy a new car or second hand car? This question requires some research and careful consideration; after all, your every penny counts.

If you want a car and have the cash to spend, it’s worth considering a new car. But, the most significant factor in deciding whether to buy a new car is the cost of ownership.

A new car will depreciate faster than a used car, but if you like buying new things and don’t mind that aspect, then go for it! However, if you have budget constraints and a new car can be too expensive, you simply put money down and buy a second-hand car. So, reason can be any, but it is always good to know the used cars vs new cars pros cons to make a wise decision:

New Car Pros and Cons

Buying a new car has many advantages. The main benefit is that the car will have fewer miles on it, keeping it running longer. New cars also come with manufacturer warranties, which can be helpful if repairs are needed. As long as you take care of your car, it should run for a long time without any significant problems. Costs of maintenance and repairs will be lower for a new car. Also, many people think that purchasing a used car means losing money because it may not be in overall good condition. 

When buying a new car, you need to pay for additional accessories, registration fees, road tax, etc. It means that to get your vehicle on the road, you have to pay some extra bucks that can burden your pocket. New cars lose at least 20% of their value in the first year alone. After 3 years, the value of the car has gradually dropped over 40%.  

Used Car Pros and Cons

If you want to look at the used cars, prefer only certified pre-owned cars that you can get from trusted auto eCommerce platforms. You can meet the number of genuine sellers with several models and ensure 100% authenticity. These used cars have been inspected and certified by auto experts and may come with a warranty. India is an emerging market for used vehicles; with due diligence and research, you can crack the best deal that eases your pocket too and keep you and your family safe in this challenging time. 

However, the interest rate for an old car loan is much higher than a new car. Moreover, if you buy a used car, it is essential to set aside money for repairs each month after purchase. 

New Car vs Used Car 

In order to analyze leasing a new car vs buying a used car which one is better? Below are some essential points of differences that help you to evaluate both the options:

Difference  Old Car New Car
Cost Used cars are always pocket-friendly. It gives you an escape from paying a large amount in one shot. You can get your favorite ride while taking care of your other financial responsibilities.  New cars are eye-catching, but you have to pay a considerable amount to make it your ride. Its cost can derail your monthly budget if you do not have enough savings.  
Additional Charges   You do not need to pay those extra charges for registration, additional accessories, etc. The first owner already paid for it.  But, in the case of a new car, you have to pay different additional charges such as registration tax, accessories costs, etc., that increase the price of the car. 
Depreciation  Buying a used car means that the car has already suffered the bulk of its depreciation. So it might be more worthwhile in the long run. New cars depreciate faster than used vehicles, especially in the first few years. It loses vast chunks of its value.
Better Options In India’s used car market, you can find better options, even your dream car,   within your budget. However, when you buy a brand new car, your options are limited, and you have to compromise while considering your other financial needs. 
New Learner If you are a newbie and started learning driving recently, always prefer a good-conditioned old car. So, that if in case it gets some dents or damages, it won’t hurt you much and repair cost will also be less.  New riders should prefer a new car only once they are confident enough about their driving. Trust us, dents and tears on the new car are more painful. 
New vs used car interest rates These days many banks and financial institutions offer used car loans at attractive interest rates. For example, used car loans can be 9.80% to 16.80% p.a. and last between 1 year and 5 years. New car loans work better if you can afford hefty EMIs. Apart from that, you have to keep a lumpsum amount to pay the down payment when buying a brand new car from the showroom. 

 

So, buyer, beware! While this is true in most cases, it pays off to be an informed buyer rather than skeptical. Whether it is a new vs used car loan, features, usage, etc., there are many aspects to consider when choosing a car.

The question is not which one you should get, but rather what are your priorities. As new cars are getting more expensive every year, many people wonder if it’s better to buy a used car instead, especially after a pandemic when social distancing is a must.

Buying an old car means you won’t have to worry about paying for repairs for years down the road. Another advantage is that most old cars are fuel-efficient, meaning you’ll likely spend less money on diesel or petrol. So, choose your ride wisely. 

Quick Tip

Buying an older car can be a great way to save money. While new cars are nice, they also come with more expensive maintenance costs that can add up quickly. You also have no guarantee that the new car you’re buying is economical, even if it may seem like it is when you’re purchasing it. That’s why buying an old car can be better than buying a new one. Moreover, if you want to sell your used car, OLX Autos is the trusted brand. A quick car listing, free car evaluation, live auction, and the best price all in a few clicks. Just list it and sell it!

Happy Selling!

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