Is It Better to Buy a New or a Used Car?

The question depends on personal choice and preference. Though it should be given a thought with the changing auto industry scenario. After all, you should be a smart and wise buyer which one can become only when you are making informed choices. The options are immense when it comes to buying a car but the pros and cons have to be weighed. It is a fact that a new car market has been recently experiencing a bumpy ride whereas used car industry has been showing positive signs only. The second-hand car market stands at 15 % organised sector with the influx of various service provider. OLX Cash My Car has made not only a hassle-free process but just a matter of 45 minutes to sell or buy a used car. Ask yourself if ever you thought it will be this easy. No running around, no local dealers, no confusion, no RC transfer issues and more. Everything is done at a one-stop-shop. While there is no denying that there cannot be benefits of buying a new car like the first-hand experience, the newness of it, the pride moment so on and so forth. But there couldn’t be less reason why you shouldn’t buy a used car especially. The offerings are beyond your expectation.

Here are some pros and cons mentioned for you to make an informed decision:

• Do not get mistaken! A Car is a Depreciating Asset and not appreciating.

A car irrespective of its pricing at least in the range of INR 10 lakhs – 20 lakhs loses its 20% value as soon as it leaves the showroom. Imagine the speed of depreciation of a car. Not only this, but a car depreciates faster in its early years and then subsequently slows down. Therefore, making a great deal for you to buy a car which is not older than 5-6 years. The car is fresh, less traveled, better working condition to be given the fair amount.

• It’s all about thought process but thinks of it you are enjoying the same features at a lesser cost. 

You are paying less but you are getting more. The features are same to be enjoyed and experienced. With the first-hand ownership decreasing to a range of 3-5 years the car cannot be called an old car. Thus, letting you enjoy a new car at a lesser price. But make sure the car is bought from a certified service provider and not from a local dealer.

• Higher Insurance cost for new cars. 

You cannot dodge the insurance. It is a mandate which has to be taken as soon as the car is bought. If you have bought an expensive new car then be ready to pay a hefty premium on that too. While the premium decreases the value of the car goes down still there are extra bucks lost during the early years. Buying a used car will let you pay a lesser amount of premium letting you save extra bucks there too.

• There is no end to the Car upgrades.

Yes, there is no full stop with the cars getting makeover or upgrades every year. On average, 20 cars get launched annually which makes the car lovers upgrade their cars. Thus, they might be upgrading every now and then but there is no end in spending money on a depreciating object. A Car should be bought for its utilitarian purposes and not for just aesthetics. Therefore, a used car benefits the owner more than he can think off.

As per the Economic Times report, from 1.6 million units in 2011, it is now pegged at 3.3 million units (Sept 2018). According to Nagendra Palle, MD, Mahindra First Choice Wheels Ltd, the used car or pre-owned car market will continue to grow at a steady pace of 15% to touch Rs 2,50,000 crore or 6.6 million units by 2021. It validates that a number of individuals are moving out of the societal norms to go for a brand new car.