Buying a car is an important decision to make, irrespective of which car you are thinking of buying. Every car is an asset that is expected to be with you for the next at least 6 to 8 years. When you consider which car to buy, there is also the question of whether you should buy a brand new car or a second hand car. There are essential sides to be considered while looking at both. Let us take a look at what makes a difference. Let us consider all possibilities, and you can consider the best option for you.- New car vs second hand
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Planning to buy a new car? Here’s what you should know – New car vs second hand
Pros of buying a new car
- Maintenance will be lesser than a used car – A brand new car will give you lesser maintenance trouble than a second hand car. If you have maintained your car well, you need not worry about a low performance or damage unless there has been a collision or an accident. A brand new car needs to undergo preventive maintenance to ensure the performance is not affected. The first few compulsory servicings are an example of such maintenance.
- Will come equipped with the latest technology & features – When you decide which car to buy, one of the essential things is the list of unique features available in the car. If you buy a brand new car name, then the car will come with the latest technology and features available in the market. You can get the latest model, including updated features and sophisticated technology.
- The depreciation rate is lower than the used car – Like every machine, whether it is a brand new car or a second hand car, your car is going to battle depreciation. However, the depreciation rate of a second hand car is much higher. Depreciation affects the resale value of the car. Depreciation is also responsible for the difference that you may have to pay in case of an accident, even with insurance.
- Insurance costs will be higher – When your car is new, it is more valuable than used cars. It is why the cost of insurance for a new car is higher than that of a used car. The most basic type of insurance, which is third party car insurance, costs the least. However, it does not cover your vehicle from damage. If you are looking for an exhaustive cover when comprehensive car insurance is the correct way to go. Since the insurance will have to pay more in case of damage to a new car, the premium of new car insurance is bound to be high.
- Purchase cost might be higher – If you are looking for an affordable option, even the lowest model in the smallest of cars may not cut it. A new car is rarely known for being pocket friendly, unlike a used car. When you go to buy a new car, you cannot negotiate much, and the cost is only based on the company and the dealer. When you go to buy a used car, you can decide your budget and look for a car that fits your budget. The cost of a used car depends on how many kilometers it has been used for and other wear and tear factors. It is why the range of a used car is much more flexible.
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Don’t buy a used car without knowing these facts – New car vs second hand
Besides being more expensive, a new car has other attached costs like whatever you pay for getting additional features put in, taxes, and so on. If you buy a model that the car company has just released, there is a chance that some issues may be unresolved and may turn up later. Since technology is always evolving, there will be a better model of your car on the market in a few months. It means your car is the best in the market till the next one comes along. A used car, on the other hand, has its fair share of disadvantages too.
Although while buying a used car, you can review the insurance history, there may be damages and incidents that the previous owner has not declared. A car that has been through a flood is sure to be compromised. This is why, while buying a used car it is important to know whether any original parts have been replaced, whether it has been a part of any natural disaster, how many claims have been filed, how many owners it has seen, the date of registration, and kilometers it has been used for. These facts will estimate whether you are paying the right amount for the used car and whether you should buy it all.
Pros of buying a used car – New car vs second hand
- Low cost – The cost of a used car is much lower than that of a new car. Although many companies can assist you with buying a second hand car, the overall cost is lesser.
- Wide range of options – When you are going to buy a used car, you have a fixed budget you can get a variety of options in the same budget. For example, if your budget permits a car that has not been used much, then you can also look at a luxury car that has been used more and is older. Depending on your budget, you can look at various cars, starting from hatchbacks to luxury cars.
- Lower insurance cost – The cost of your insurance is much lower than looking to buy one for your used car. Just like brand new car insurance, second hand car insurance is also extremely important. Protecting your car against damage and yourself against liabilities is essential no matter what you choose to drive.
Also Read – What to Look for When You Test Drive a Used Car
Cons of buying a used car
- No warranty – one of the disadvantages of buying a used car is that there is no warranty. Whereas if you buy a new car, the dealership always offers you an option for an extended warranty which is chargeable.
- Higher depreciation rate – one of the disadvantages of buying a used car is that there is no warranty. Whereas if you buy a new car, the dealership always offers you an option for an extended warranty which is chargeable.
New car vs. Used car: what to choose?
Now that you are aware of the pros and cons of both buying a new car and a used car, you can make an informed decision that suits you best.