Buying a car is always a big decision, especially for first-time buyers. With the wide range of options available to people these days, zeroing in on the right car can often be quite confusing. Adding to this dilemma is the choice between buying a used or a new vehicle. While both have their pros & cons, in this article we have highlighted the key points to consider while making your decision.
New Car
Apart from the emotional satisfaction of buying a brand new car, one of the biggest advantages of going this route is a standard warranty offered by the carmaker. The standard warranty ranges from two to four years and you can purchase extensions. Any defects that may arise in the vehicle are covered under this warranty and parts are replaced free of cost, thereby giving the buyer peace of mind. Another benefit of buying a new car is the easy availability of finance through the dealership, hassle-free trade-in for your older vehicle, and sometimes an exchange bonus. Another key benefit of buying a new vehicle is access to the latest technologies, something younger buyers especially seek. In-car entertainment technologies are evolving rapidly. Buying the latest model often lets people enjoy the wow factor for the initial months, leading to a happier ownership experience. The downside of buying a new car includes a higher initial cost and more depreciation as vehicles lose most of their value in the initial years.
Used Car
Buying a used car offers the buyer the key benefit of a lower initial acquisition cost. On average, buying a two-year old vehicle can cost up to 40% lower than a brand new vehicle, depending on the model. This means the vehicle has already reached maximum depreciation, resulting in better overall ownership costs. Keep in mind though, that finance rates for used cars are often higher than that for new cars. Some first-time car buyers prefer used cars because the lower buying cost gives them more confidence to hone their driving skills. Additionally, costs like insurance are lower compared to new vehicles. However, you must also consider the risks associated with a used vehicle, as its history might not always be available. It’s advised to avoid vehicles without a complete ownership and service history. Also, used vehicles in many cases might not come with an active warranty and in such cases, repair costs are directly borne by the user, possibly leading to higher maintenance costs if the vehicle has persistent problems. Recently, however, multiple brands have started offering certified used vehicles with a warranty, which provides some peace of mind to used car buyers. Considering all points, ensure a trusted mechanic or garage checks and certifies used vehicles, and seek all documentation before making any payment. Any decision between a new and used car should be made after considering all user requirements and budget.
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