New vs used car: Which one should you buy? A comparative analysis
- Amid the latest price hikes in the passenger vehicle market by the major OEMs, the dilemma of car buyers regarding new vs old models is there again.
A car in modern times is beyond just a status symbol. Cars have become one of the essential utility products for many consumers in India, just like the rest of the world. With the expanding consumer ambitions, the passenger vehicle market in India has been bulging at a fast pace. At the same time, the used or pre-owned car market too has witnessed a rapid growth over the last couple of years. Interestingly, at some points, the used car market's growth pace surpassed the pace of growth in the new car market.
Since the outbreak of the Covid-19 pandemic in 2020, passenger vehicle sales in India have been witnessing a massive surge in demand. While the rising prices of new cars have been creating hindrances for many consumers to buy new models, the used car market is offering a great alternative at affordable costs.
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Despite the consumers' dilemma around used cars over new models, the emergence of major organised sector players in this domain has been able to alleviate the buyers' worries. While the consumers' scepticism about buying a used car over a new one is not that great anymore, there are still some factors that play key roles in their selection and purchase decisions. Amid the latest price hike in the passenger vehicle market by the major OEMs, that took place at the beginning of 2025, the dilemma is there again: to buy a new car or a used car? Here is a comparative analysis of the scenarios to help you make the important decision.
When to consider a used car
Check the scenarios where buying a used car should be considered over a new model.
Tight budget
Budget plays a crucial role in determining the purchase decision of a car buyer. If your budget is tight, it will only allow you to get to the entry models in the new car market. On the other hand, you can get a mid-level or a top-end trim on a tight budget. You will have an older car with more mileage on the odometer but, with proper research, you can have a good car. Also, in tight budget that can allow you to buy a small new car, you can own a bigger old car. It may not offer you the same upgrades or latest safety features available in a new model, but you will have better space and comfort.
Car needed immediately
When we buy new cars, every model commands a certain waiting period. Sometimes, the waiting period even reaches longer than a year. However, in the case of used cars, the buyer can purchase the model immediately. The used car is readily available in the market, which allows the buyer to own the vehicle immediately given all of his or her and the seller's requirements are fulfilled.
When to consider a new car
Check the scenarios where buying a new car should be considered over a used model.
Longer ownership period
If you plan to own the car for at least 10 years, it is a good idea to buy a new car. The acquisition cost of the vehicle will be higher compared to a used one, but maintenance costs of the new model could be significantly lower due to extended warranties and better insurance rates, especially during the first five years of ownership. A new car will offer you lower running costs due to the freshness of the vehicle, extended warranties and lower insurance premiums than an old one.
Latest technology-aided features
If you want to own a car with the latest technology-aided features, a new car straight out of the manufacturer's plant is a better option than buying a used model. The new car comes with the latest features in terms of creature comfort, safety etc. over the same model from the previous year.
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