In India, where the large proportion of car sales stays in the hands of first time buyers. When an individual plans to buy a car, he gets surrounded with so many questions and doubt in his mind such as which price range to opt for ? which category to prefer i.e Sedan, Hatchback or SUV?. Customers find them stucked in the doubts like what should they pick for them Used car or a new one?. Although, this decision is completely a subjective decision and relies solely on the customers preference. If you are also in a dilemma of choosing between a used and new car. Here, we come to help you, in this article, we will discuss advantages and disadvantages of buying an old and new car. Check full story to get into more details.
Pros of Buying A New Car
Feel Of A New Car
In a pragmatic way, its not soo much a big advantage to but a new car, but a feeling of a new is car is unmatchable with the used car feel. It becomes an occassion for an Indian customer, when they go to take the delivery of their new car in the showroom.
Warranty
One of the biggest advantage of buying a new car is the manufacturer provided warranty for the vehicle. Customers can stay stress free in case of any mishap and unwanted event take place with their vehicle. Nowadays, automakers are also providing extended warranties for the vehicles which ensure the safety of your car for longer period of time.
Modern and Safety Features
If you buy a new car, it comes with more advanced features and a more safe driving experience, this is undoubtedly an advantage in opting for a new car. No used car can match the advanced features and reliability of a new car.
Cons of Buying A New Car
High Insurance Cost
New car demands a much higher amount to be insured, it can be even twice or thrice the value of the same used car because as the car gets old, the insurance amounts gets reduced too and in many cases, customers find deal whey don’t need to incur the cost of insurance as it comes already insured by the previous owner of the vehicle. So, this can also be considered as a disadvantage while opting for a new car.
Expensive
Another considerable disadvantage of buying a new car is that they comes with a hefty price tags when compared to a one year or less used car. You need to incur all the additional taxes while purchasing a new car which can also be seen as a disadvantage of buying a new car.
Depreciation
A new car that comes with the value of 10 lakh, gets the depreciation of around 20 to 25 percent immediately it goes out of the showroom. Relatively, the depreciation of a used car is considerably less than a new car. So, taking note of this aspect buying a used vehicle is more beneficial in terms of resale value.
Pros Of Buying A Used Car
Cheaper Insurance Cost
The biggest benefit of buying a used car is a much lower insurance cost than a new car, reason behind is that the insurance premium gets reduced as the vehicle ages.
Features as Good as a New Car
A large number of cars manufactured in last 3-4 years comes with standard safety features such as ABS, airbags and rear parking sensors and these are things which a customer expects in their car. In most of the cases, other features of the car also work like a new car. So, getting the same pleasure even in the used car can also be an advantage if you opt to purchase a used car.
Cons Of Buying An Old Car
Emissions and Environmental Impact
Used cars are often not found environment friendly as they don’t follow the new emission standards and regulations. Mileage can also be an issue while puchasing a used car because of less environment friendly technologies and powertrains.
Maintenance Cost
Used Car can demand a much higher amount as their maintenance cost which you need to incur for longer period of time if you buy a used car.
Used Car vs New Car : Interest Rates
- New Cars comes with zero mechanical issue which as a result lasts longer, they are more safer investment for the lender. This is the reason behind interest rates on a new car are lower than the used car.
- Used cars have more higher interest rates because they have higher probablity to face a mechanical issue which is a risky investment for the lender.
- Lenders decided interest rates for a car on the new and old cars on the basis of some factor such as model, condition and model of the car where the new car takes a significant advantage in terms of less interest rates charged by the lender.
Conclusion
Here, we have explained the advantages and dissdvantags of buying an old and new car. Now, it’s upon you to decide which suits you the best and which proves true to your expectations.
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