Many people often wonder about the merits and demerits of owning a used and new car. It has grown to be a dilemma.
The differences between owning a new and used car are as follows:
- Buying costs
A brand-new car can cost up to 30–50% higher than a car that is used. However, the cost of the used car is subjective as it depends on how it has been maintained by the previous owner. Additionally, costs of repairs during the usage in the future should also be taken into account. Additionally, the quote of the used car itself varies from person to person. Several cars have a lower resale value and their warranty value also goes down when sold.
- Warranty coverage
The additional cost paid for a new car may be worth it for a few buyers as they get a warranty which will cover the car for a reasonable amount of time. Most of the new cars come with warranty plans that last for three years/36,000 miles or four years/50,000 miles, whichever comes earlier. Used cars can be bought with extended warranty packages like two-year/24,000-mile or a three-year/36,000-mile warranty, depending on your usage pattern. If you want to use your car for a longer period, the three-year plan is good.
- Running costs
Along with mileage and periodic maintenance charges, there are several other factors that contribute to the running costs. Most of the car manufacturers offer extra coverage period on powertrain parts like the engine, transmission, axles, and computer control systems. Some new cars even come with free scheduled service and maintenance. While such initiatives for new cars ensure they are maintained well and are returned in good condition, used cars too can have good quality parts.
Power trains parts can cost a lot on repairs. Hence, if the car itself is unreliable and your usage is rough, extended warranty packages can be useful. These warranty packages can save a lot of money in the long run, including repairs and replacements of AC system components, engine manifolds, etc. Along with that, free towing and other services like free delivery of your vehicle as also provided. Also, you can have peace of mind without having to worry about spending a lot of money at the time of repairs.
- Peace of mind
While buying a new car one does not need to worry about its history of repairs and the entire process of purchasing it is easy as the dealer completes most of the procedures as well. But if it is a used car, the process is tedious as you will have to spend a lot of time verifying the car’s history, getting an independent mechanic for pre-purchase inspections, etc. Additionally, you will have to be aware of the previous maintenance routines, accidents, and the wear and tear that might pose unexpected problems while you are using it.