How To Choose Between Buying A New Car vs Used Car

New car vs used car has become a topic of debate nowadays. However, you will approve that purchasing a car is a prominent decision for every middle-class person. Not only is it a significant financial investment, but it is also something that you will count on for transportation and even for fun. Well, there is no straightforward response for buying an old vs new car as it totally relies on your personal needs and budget. Nevertheless, there are some vital things that you need to consider and keep in mind before making an informed decision.

“Should I buy a new or used car” has become an ordinary concern of thousands of people in India, hence we are here to answer all your doubts one by one. Let’s discuss all that you need to know regarding used car vs new car.

Benefits of Purchasing a Brand-New Car

Well, there are a lot of benefits to purchasing a top-selling car in India. That fresh scent of leather, shining paintwork, and the perfectly tuned MPFI engine combine together and create a sense of excitement. Let’s learn about the most popular advantages of buying brand-new cars in India that will help you understand why you should head straight for the showroom floor.

1. Extended Warranty

One of the most prevalent and greatest advantages of buying a new car vs used car is the manufacturer’s guarantee or warranty. It goes an extended way to ameliorate all the fears of reliability when buying brand-new made-in-India cars. Nowadays, both manufacturers and car dealers are offering extended warranties at budget-friendly and affordable rates, hence reserving your car for more than seven years in the majority of cases.

2. That Feel of the Brand-New Car

When buying a new car, you will feel much better as you know no one can argue with the feeling of a new car. Yes, we understand that this feeling doesn’t add anything to the value of the car, still picking up your new car from the showroom is an experience that can make your entire driving journey much more enjoyable and special.

3. Latest Safety Rating From GNCAP

Purchasing a brand-new safest car in India simply means that you bought the latest technology that is equipped with the latest safety features. These cars receive genuine safety ratings through GNCAP, i.e., Global New Car Assessment Programs, specifically if you go for higher variants.

With manufacturers contending to fill their cars with the most important features and tech it is almost unattainable to purchase a brand-new car nowadays and not obtain a lot of components such as safety features, including airbags, ESC and ABS.

Drawbacks of Buying a Brand-New Car

Everything with advantages has some points as its drawbacks. Isn’t it? Similarly, buying a brand-new top-selling car in India has some disadvantages that should be put to light. These disadvantages of purchasing a brand-new car are mentioned below. Make sure to understand them in a careful manner.

1. Depreciation

The depreciation of a brand-new car that has been rated around 10 lakhs will be between 20 to 25 per cent from the point you take the car out of the showroom. However, the percentage of depreciation for the second hand car is much lower when compared to the new car because the immediate depreciation of 20 to 25 per cent has already been subtracted.

Manufacturers launch new cars with facelifts and limited editions every few months, the customers are continuously advancing to brand-new cars and selling their used cars just a year after purchasing them.

2. The Cost of the Insurance is High

Brand-new vehicles are a lot more costly than used cars. At times, they are even twice and thrice the price of second hand cars. The cost of the insurance cover decreases as the car ages. So, we can understand that an old car will cost you less than buying a new car. When buying a used car, you should know that the chances for insurance are still high, hence another cost for maintenance should not have to be borne by you.

Also Read:- What is Comprehensive Car Insurance and What Does It Cover?

 

3. Expensive

 

The biggest disadvantage of purchasing a brand-new car is that they are extremely expensive as it adds up the insurance, road tax, and other taxes that raise its cost and make it expensive. It doesn’t matter what style of car you want to purchase and its cost, a brand-new car always works out the most useful yet is costly when compared with an old car.

 

Benefits of Buying a Used Car

 

There are a bunch of benefits to purchasing a used car for middle-class people. Those who are on a tight budget and those who want to decrease their cost of insurance find that purchasing an old car is a smart decision.

Let’s look at some of the most influential and favoured advantages of purchasing a used car and understand why investing in a second hand car is believed to be a more suitable technique when compared to purchasing a brand-new one.

 

1. Luxury and Safety Just as the New Car

 

A majority of the cars that have been produced in the previous five years have expected standard security elements such as ABS, airbags, and reverse parking sensors which are the direct things a customer requires in their cars. When it comes to the interior of the cars, they have a proper music system, including USB, Bluetooth, and AUX connectivity. You can also locate auxiliary components in the car, including subwoofers, amplifiers, reverse cameras, touch-screen infotainment systems, and leather seats.

The question is good, i.e., why should you pay extra when you can get the same features as present in the new cars in good condition second hand ones.

 

2. The Cost of the Insurance is Cheaper Than The New Car

 

One of the most popular benefits of a second hand car is they have cheaper insurance costs. This is possible as the insurance premium lowers the car's age, hence the cost of the insurance is cheaper than the new car.

 

3. Absolutely The Best Choice for Beginner Drivers

 

Second hand cars are no doubt one of the most acceptable options for you if you are a newbie and want to learn how to drive a car like a pro. Nevertheless, a few blemishes, scratches, or dents are fairly common when you begin to drive, hence it is best to buy a brand-new car once you are assured enough to take the car on the crowded and bustling Indian roads.

 

Drawbacks of Buying a Used Car

 

Well, buying a used car can be a cost-efficient alternative, but it also comes with a few possible weaknesses. Let’s understand some of the significant determinants of purchasing an old car in a bit more detail. These disadvantages are cited below.

 

1. Cost of the Maintenance

 

Used cars require more frequent maintenance and repair that can add up over time and hence it becomes expensive.

 

Also Read:- Is Your Second Hand Car in India 2024 Getting the Right Maintenance?

 

2. Impact on the Environment

 

Second hand cars are not environment friendly like the new ones, with less efficient powertrains and emissions control technologies.

 

Questions To Ask A Used Car Dealer When Buying a Used Car?

 

There are some of the most significant inquiries that you should keep in mind when purchasing a used car from the dealership.

These questions are mentioned below and make sure to ask them with your used car dealers.
» What is the MSRP?
» What are any other fees included in the sale?
» How many miles have been driven in the car?
» What is the safety rating of the car?
» Does the vehicle include any parts not from the maker/after-market parts?
» Is the vehicle certified pre-owned?
» Are there any warranties?

Also Read:- Insider's Guide: How to Navigate the Used Car Market in Delhi NCR.

The 20/4/10 Rule

The 20/4/10 rule is a technique that helps customers ascertain whether they should purchase a used car for sale or not.
In order to apply this rule, you have to budget in the subsequent method as mentioned below:

» 20% down payment for the car.

» Four Years for repayment terms.

» 10% less on the monthly transportation costs.

Depreciation of a New Car Vs Used Car

When talking simply, the depreciation of your car completely directs to the decline in its value over time. New car vs used cars in India both depreciates, nevertheless, the momentum of devaluation or percentage of the depreciation may deviate. So, without wasting a minute, let’s understand the essential distinctions between the depreciation of a new car and a used car. These contrasts are mentioned below:

» Brand-new cars generally devalue at a fast pace in the first few years of ownership which is why a new car relinquishes most of its value in the first year of the ownership.

» The percentage of the depreciation of a new car delays down after the first few years, however, the vehicle will persist to lose value over time.

» Second hand vehicles normally depreciate at a slower pace when compared with brand-new cars.

» The velocity of depreciation counters, depending on the make, age, model, and condition of the automobile. An old car that is in a suitable situation is less likely to depreciate when compared with that of used cars that are not maintained appropriately.

Also Read:- Mastering Online Tactics for Maximizing the Value of Your Used Car Sale.

Interest Rates of a New Car Vs Used Car

The interest rate on a car loan is just a consideration of the cost of borrowing money in order to purchase a car. Hence, you should keep in mind that the interest rate can be adjusted depending on whether you are purchasing a new car vs used car.

Let’s understand some of the most consequential and prevalent dissimilarities between the interest rates of a brand-new car and the used one.

» Interest rates on loans for brand-new cars are lower when analogised with the interest rates on loans for used cars, simply because the new cars are deemed a secure investment for the lender.

» Brand-new cars that don’t have automated issues manage to have advanced longevity, which makes them less perilous for the lender.

» Interest rates on used car loans manage to be more elevated when compared with the interest rates on brand-new car loans because second hand cars are considered a hazardous investment for the lender.

» Second hand car and an old car ultimately depend on some key elements, including the age, model, make, and necessity of the car, and the duration of the loan.

How To Decide Between an Old and a New Car?

Deciding between a used car or a new vehicle can be a daunting duty as both have their own pros and cons. Nevertheless, in order to make it comfortable for you, we have mentioned some of the most prevalent key references that you should contemplate when purchasing a new car vs used car.

Also Read:- 5 Compelling Reasons to Buy Used Cars in 2024.

1. Examine the Cost of the Car

Brand-new cars come with an elevated price tag, but they generally have inferior upkeep costs and a trustworthy assurance. On the opposite side, a second hand car is typically reasonable and pocket-friendly, but it mandates occasional and systematic maintenance and periodic repairs.

2. Check the Reliability

Brand-new cars are usually more dependable and reliable when compared with their counterparts. Most of the time, because they use the latest technology that enables them to function at a better bandwidth.

3. Inspect the Features of the Car

Brand-new cars are usually qualified with the most delinquent technology and the most relevant components, including touchscreens, advanced infotainment systems, and navigation systems. Apart from this, second hand cars may or may not have these technologies and features but they may still have the substantial and necessary components that are important and most meaningful for you.

4. Check the Latest Safety Features

As you know old cars don’t always maintain the most delinquent technology and fundamental components, but the latest cars come with the most delinquent security components and take reasonable upkeep of all the safety standards for the passengers sitting inside the car. These safety elements include extra airbags, blind spot monitoring, automatic emergency braking, and several other components.

5. Keep Aware of the Depreciation

New cars depreciate fast when compared to used cars. This simply means that they lose value at a fast pace. Therefore, if you are planning to purchase a car and sell it in the future, it is essential to keep your mind clear of the depreciation accompanying the model and brand of your car.

6. Reevaluate the Environmental Impact

Brand-new cars are generally designed to be more environment-friendly, with features like hybrid or electric powertrains. This helps you reduce your carbon footprint to a great extent, hence reevaluating the environmental impact in the best way.

How Carenzy Can Help You?

No more cheating or getting into scams as we are here to help you with our reliable and genuine app, i.e., Carenzy. The app is for everyone who wants to buy a second hand car for themselves but is not able to purchase one because of widespread fraud and scams. Therefore, we created a solution for those people in order to save them from being cheated by these cunning used car dealers. On the Carenzy mobile app, you are able to communicate with the car dealers one-on-one.

The plus point of this app is that there is no mediator in between that will help you to get in touch with the dealers perfectly without being cheated. Every dealer on the Carenzy app is reliable and genuine. All the automobiles on this mobile app are carefully handpicked after a comprehensive and detailed quality inspection, every dealer is legitimate and trustworthy, and sells authentic and certified cars at reasonable prices, providing you with 100% honest satisfaction.

The Bottom Line

Last but not least, you need to decide which car you want to buy among new car vs used car. Both used car vs new car have their own benefits and drawbacks. Make sure to buy a reliable car from a trusted dealer. If you want to buy a new car, then visit the showroom and get your deal finalised. However, if you want to buy a used car, then the Carenzy app is the best option for you to move forward with. On this app, you can find a long list of reliable used car dealers as per your location. So, why wait? Move forward and book your car! We are with you at every step!

Frequently Asked Questions

Q. Is it good to buy a second hand car in India?

Ans. Used cars are, no doubt, the best choice for anyone who wants to learn driving from the beginning. A few blemishes, scratches or dents are generally common when you begin to start driving and it is perfect to go for a second hand car once you are confident in your driving skills that you can take your car on the bustling Indian roads.

Q. Is a second hand car worth buying?

Ans. Yes, buying a second hand car is worth it because the cars go through depreciation as well as unrestricted wear and tear. There always remains a query of finding the right vehicle so that individuals can save hefty money. Therefore, it is greatly advisable to move forward and buy a second hand car from reliable used car dealers.

Q. What are the benefits of buying a new car vs an old car?

Ans. The benefits of buying a new car vs used car are mentioned below:

» The cost of maintenance for a new car is much less when compared with a used car.

» Features and technologies are more advanced in a new car.

» The interest rate for a car loan is higher for a used vehicle.

Q. How do I know if my car is new or used?

Ans. A VIN or vehicle identification number indicates an old car. Decoding this number will tell you when your car was manufactured. With the help of this VIN number, you can find out if the car is new or not.