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The Indian automobile industry is growing rapidly and is one of the largest in the world with an annual production of 21.48 million vehicles in FY 2013-14, as per the report submitted by IBEF (India Brand Equity Foundation).
As per SIAM (Society of Indian Automobile Manufacturers), sales of commercial vehicles in India increased 5.3% to 52,481 units in January 2015 from previous year. The figures clearly state that the Indian auto market is seeing a lot of hustle and bustle. And many car seekers are scouring the market for buying a car. But they often get confused in making the choice between a used and a new car.
Where a few get married to the idea of getting a new car, a few wish to invest in the used car market. Buying a new or used car have their own set of advantages and disadvantages. You get more cars per car in the used market even when you are on a tight budget. For example, anyone can get a used Honda Civic at the price of a new Maruti Suzuki Swift but, maintenance of the former will be five times as expensive as that of the latter.
We categorize the advantages and disadvantages of the new and used cars to help the buyers make an informed decision.
Most of us want to own a brand new shining car. If you are finding more reasons than just it’s a new, below find some:
By buying a new car gives absolute peace of mind, as you get the car covered with bumper to bumper warranty from manufacturer. Anything goes wrong, the dealership and the manufacturer will fix that up. The warranty usually in India extends up to 4 years or 100000 kms (whichever comes earlier) and more for certain manufacturers. One can also extend the warranty period as offered by certain manufacturers. Major expensive elements such as engine, transmission and air conditioner etc., gets covered in the extended warranty. So you can have absolute peace of mind.
A new car will require fewer service centre visits than that of a used car. The parts that wear and tear such as tyres, brake pads etc. will require replacement only after a few thousand kilometers. The periodic service will also require replacement of consumable such as engine oil and brake oil only. Overall, for a first few years of ownership, you will end up spending less on a new car.
New cars also come with manufacturer provided road side assistance. This is another factor that ensures peace of mind for the commuters. The probability of getting stranded on a new car is actually very low but road side assistance covers petty things like empty fuel, flat tyre and loss of keys.
When you are buying a new car, you can choose each and everything like the exterior color, interior color and you can also customize the feature list in their vehicle. One can also choose the insurance of their choice. These are also possible in buying a used car but your checklist will not be fully ticked.
The emotional content that is associated with a new car is simply priceless. The smell of fresh leather and the feel you get when you step into your new car is just amazing.
In addition to the above mentioned points, the there is also a trust factor which is absent mostly when you buy a used car. In a new car you are sure that the condition of the car is perfect and you can maintain it accordingly. Some people also buy used car to beat the depreciation that they have to incur if they buy a new car. But, certain brands in India like Maruti Suzuki, commands a great brand and resale values.
The used automobile market in India has grown over a decade. Consumers are now open to buying a used car from the open market rather than only from someone known. Buying used car has its own advantages, some of them are mentioned below:
As mentioned earlier, a person on a tight budget for a new car can jump two segments higher and get a much bigger and better car in the used car market.
There are a handful of inspection companies which inspect and provide an auto inspection certificate for the used cars. This certification reduces ambiguity and tells a buyer about the critical parameters of the car. This helps buyer make an informed decision.
If you are buying a relatively new car in the used market, the original manufacturer warranty can be transferred to your name. But, certain companies refurbish used cars and provide warranty on them too. This again improves the trust in the car for the buyer and also ensures peace of mind to a certain level.
Buying a new car and seeing it depreciate to 60% of its value within one year is something very painful. But if you are on the other end of the stick, that is, if you are buying a one year old car, it’s almost as good as new and you get it for 60% of the actual value. Imagine the kind of money one could save by buying a car like this. So it would really be a wise decision to go in for almost new cars with a few numbers on the odo.
Now, OEMs are maintaining the service histories of the vehicles that are being sold. So if you would like to know the exact condition of any vehicle, you can obtain the service history of the vehicle and protect yourself from various parameters.
These are certain parameters to consider before taking a decision on the new or used conflict. Please follow these and no matter what, your decision will be always right.