The confusion to buy new vs used cars is never-ending. Though buyers tend to go for a new car without a second thought, the changing trend over the last few years shows a significant rise in pre-owned car sales. Buyers have shown a lot of confidence and trust in buying pre-owned cars which come with all the necessary quality and performance checks. The pre-owned car market share is approximately double that of the new car market. Swift solutions, easy buying options, and 360-degree buying solutions by automobile e-commerce platforms are some of the factors contributing to the favor of the used car market.
According to the report published on Statista,” The pre-owned car market had a size of over 4.2 million units across India in the fiscal year 2020.” Consider the used car market as a customized and personalized set of services that allow every buyer to dictate their requirement and find the best solutions based on their precise requirement. It is more of what a buyer wants to buy than what a company is trying to sell and promote in the auto market.
| Factors | Cost | Maintenance Cost | Depreciation rate | Fuel efficiency | Number of options |
|---|---|---|---|---|---|
| New Car | Higher | Low | Higher | Higher | Based on availability |
| Used Car | Best Price | High | Lower | Lower | Higher |
The Indian automobile sector has always been buzzing with new car launches. The entry of new players has fuelled uyer interest along with the new and exciting launches by renowned auto rands in India. If a buyer is looking to buy new car, they are more inclined to check the new car launches than to explore the used car market.
Used cars are available for a lower selling price than their newer counterparts. Many factors bring down the cost of used cars meaning that buyers can buy the same car for a lesser price.
Put aside your concerns over condition or performance, and even pricing of used cars. As a buyer, you get to check the certified reports before making the final decision. It helps you to make an informed decision and thus find the best car for your requirements.
As the cost for used cars is lower, you can get a loan approved at a lower interest rate and this enjoy further savings on your purchase. Besides, as the Insured Declared Value also comes down a notch, the insurance premium, as well, is not as high as otherwise, you will have to pay for the new car.
Compared to new cars, the used cars deliver lower mileage. If fuel efficiency is one of the major deciding factors for you to buy a car, make sure you check the future cost of ownership of the same.
Check out the service car records when you go out to buy used cars. If the car has been maintained properly you won’t have to shell out the extra cost of maintenance and repairs. In case of any pending car component repairs, you can negotiate for the final selling price with the seller.
You might be second guessing your choice initially. It is only after driving for a few months that you grow confident of your purchase to enjoy peace of mind.
| Age of Car | 0-6 months | 6 months – 1 year | 1 year – 2 years | 2 years- 3 years | 3 years- 4 years | 4 years- 5 years |
|---|---|---|---|---|---|---|
| Rate of Depreciation |
5 | 15 | 20 | 30 | 40 | 50 |
Used cars have been in a lot of demand and the reason can be attributed to the emergence of automobile e-commerce platforms. All the pain points associated, if you are looking to buy used cars, have been made redundant for the benefit of the buyers. From the availability of thousands of top branded car trims of a particular model to the necessary quality and performance certification reports, buyers get to experience hassle-free, unbiased services to find the best car for their requirements.
There is no other feeling that comes close to getting a brand-new car for you. From the shining new color to the sound of engine revving and the new car smell. It is a precious feeling which a buyer cherishes forever.
Every buyer looks for exciting new features when they go out to buy a new car. With the state-of-the-art features installed in cars, you know that you are getting a unique piece of machine not in possession many.
The thrill and performance of a new car are unmatched. A petrol hatchback delivers 20-25 km/l with ease. When you add all these savings to your monthly travel expenses, you only end up saving a lot more than you might have anticipated.
You do not have to pay for the car servicing in the initial years post buying a new car. Depending upon the kilometers a car has been driven or the respective period, car owners get their car serviced for free from the registered service centers. Hence, giving you peace of mind to enjoy a smooth drive with your new car.
There are times when a car you are looking to buy costs a lot more than your set budget. At such times, buying a new car feels like an uphill task.
When you buy a new car, you are paying for the registration services, RTO, and others.
