An automobile is a valuable asset, but depreciation reduces its worth over time. As a result, it is worthwhile to do research before purchasing a vehicle to ensure that your money is not going down the drain. A new vehicle, without a doubt, has the latest technology and features, but it also comes with a heavy price tag.
On the other hand, a pre owned car is cost-effective but may have reliability issues if purchased privately. So, if you are wondering should I buy a new car or second hand car check out the difference between the new car vs used car to make an informed decision.
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Difference Between Used And New Car
It’s a good idea to learn the differences between buying a used and a brand-new vehicle to ensure you don’t end up with a lemon.
| Difference | Pre Owned 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 need 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 it 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 initially. |
| 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, 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 to drive. In addition, dents and tears on the new car are more painful and costly to repair. |
| New vs used car interest rates | 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. |
New Car Vs Pre Owned Car Which One You Should Buy?
Choosing between a new and used car is entirely a personal decision based on one’s requirements and financial constraints. However, several key insights in the following section explain why a used car scores more than a new car.
- Latest cars come with advanced safety features and are more reliable, albeit they can be more expensive and have a higher insurance premium.
- Zero-interest loans are not available for pre owned cars, but still, you can find suitable financing options.
- A utilized car is a better alternative if you need minimal monthly payment and a lower down payment.
- A trade-in car might be a decent option if you intend to replace your car in a few years and only need it for some time.
- Some automobiles simply keep their value well even if you buy them used. So selling them a few years later will not be a huge loss.
Quick Tips
Here are some quick tips that help you to crack the best deal while buying a car:
- Compare the pros and cons of a second hand and a new car.
- Make inquiries about part availability and service centers.
- Check the safety rating of the car. If it is less than a 4 out of 5, look for another option.
- Look for the most popular vehicles on the certified pre owned lot.
- Keep your credit score good to fetch the car at a lower interest rate.
The Bottom Line
Several factors influence the decision to buy an automobile. Pre owned cars are a good option if you want to save a big chunk of money. But, if you do not want to go through that second owner stigma, you can go for a first-hand car. So, when it comes to new car vs used car both have benefits and drawbacks. But, it is what you need to ensure that the car, whether new or old, should meet your commuting needs and give you comfort and safety. Thus, choose your ride wisely.
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