Buying Guide

Should You Buy a New Car or Used Car

Comperison between New Car vs Used Car

Before purchasing a new car you always think about the residual value for once. This is the main drawback of purchasing a new car. Similarly, when you purchase a pre-owned car, you always think about the hidden problems and conditions of the car. So should you purchase a new car or a used one? It’s a bit confusing.
If you talk about true money-grubber, they always prefer a pre-owned car. But the number of people who purchase new cars is also very high.
Well, I was in the second group. I preferred purchasing a new car over the old one. Because new cars, especially, new models are equipped with advanced technology. But now I also cannot deny the
importance of pre-owned cars.
Before going into detail of these two opinions lets discuss the benefits, and drawbacks of purchasing new and old cars, first.

Draw Backs of Purchasing a New Car

  • You have to pay
  • A rapid decrease in the original price
  • High-priced

Benefits of Purchasing New Car

  • Less Annual Percentage Rate (APR)
  • Easy insurance
  • No hidden faults
  • Written guarantee from the manufacturer
  • No extra service required

Draw Backs of Purchasing Old Car

  • Hidden defects
  • Repair cost
  • High Annual Percentage Rate (APR)
  • Less or No warranty

Benefits of Purchasing Old Car

  • Less or No taxation
  • Cost-effective
  • Residual value decreases slowly.

In the context of benefits and drawbacks, both are equal approximately.

At first, I purchased a car used by the owner for 12 years. I was simply in trouble. It had a lot of problems. I spent a lot on the repair but in vain. I could not drive on high-speed. It always took a while to start. I sometimes feared driving it. As soon as I got financially stable, I purchased a brand new car of the latest model. I felt like I am out of hell. I was highly convinced that you should buy a new car.

My new car was mind relaxing. I was overwhelmed. I loved each ride I had in the first few weeks.
After that, an incident made me realize something. I had a minor accident. My car got a dent on its bumper. My heart started sinking. Can you feel it? You paid a lot for something just a few weeks ago. Just a dent devalued it. At that movement, I realized that it’s me who has to bear the depreciation cost. I thought I have to pay a good amount for its repair. Repair cost was more than the car’s monthly insurance.

Should I repair my car? Or should I sell it? These were the two questions in my mind. I thought deeply and then I realized, there is no link of dent with the comfort I had while driving this car. Even if I do not repair the car, it’s ok for me to drive. The appearance was affected though, but working was the same as it was before. So I decided to keep my car as such to save money. I think it was a good decision. Still, my car was best for me.

If, someday, I have to sell my car, then obviously I have to bear the depreciation cost. But I won’t need to do so in the coming years. I hope so. Till then, I will be able to justify the depreciation cost against the comfort I had while diving.

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saeed rana

I was the executive vice president of the General Insurance Company. With that I also mentor students to help them find and apply for international scholarships each year, Due to extensive practice in vehicle insurance, their claims, and all sorts of interest in vehicles; today it became my passion to write research articles on vehicles.

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