Buying a car is a challenging decision to make for most individuals. Whether one is an experienced car owner or a newbie, there are multiple deciding factors while buying a vehicle. So, for determining whether you should go for a new car or an old one, various factors are provided in detail below, including conditions related to a car insurance policy. A proper car insurance plan will keep you and your vehicle protected against legal and financial liabilities, depending on the type of coverage that you opt for. In India, it is mandatory to have at least a valid third-party vehicle insurance plan. Therefore, keep reading to know more about this and other key factors to know if you should buy a new car or an old one.
Factors Deciding Whether You Should Buy a New Car or an Old Car
In most cases, the advantages of a new car include a warranty, financing, and the latest technology. In contrast, a used car might be cheaper and can give better value to individuals. However, details regarding all these factors are provided below –
One of the significant advantages of buying a new car is the availability of a warranty. This will cover some significant car issues, including certain costs in the first few years of ownership. However, one must remember that buying a certified pre-owned car might also come with a warranty, and for this, they must consult with the respective seller
2. Car Insurance
Depending on the type of coverage, you can either opt for a third-party or a comprehensive plan. While a third-party policy offers coverage against only third-party damages, a well-rounded, comprehensive plan provides coverage against both own and third-party damages. In most cases, the insurance for an older model will be less than a newer one, as the repair cost for an older one is much cheaper than the new one. Regardless, new car owners can opt for zero dep car insurance, which is a comprehensive insurance plan with a zero depreciation add-on.
However, one must note that in a zero depreciation car insurance, multiple factors are excluded, including the cost of engine oil, compulsory deductibles, cars more than 5 years old, and others.
It is most evident that a pre-used car is likely to be cheaper than a new model. Hence, if one has a limited source of money or has substantial financial liabilities, they can opt for an old car as it comes at a lesser price. But, to make the purchase of a new car more affordable, dealers often provide attractive deals and discounts, which might be absent in the case of used vehicles.
Due to the rapid advancement of technology, newly launched cars have maximum benefits and the latest technology that eases driving experience and provide higher security. But, pre-used cars might lack the latest features and come with archaic technology. For example, in new vehicles, drivers can connect their cars with their phones to listen to music or look at the map, which might not be possible in the case of an older model.
Buying a new car has a disadvantage of depreciation in that it loses its value over time. But, in the case of used cars, the previous owner has paid the most for the depreciation and now the second owner is likely to pay much less. But, in case one opts to buy a new car and hold its value over time, they can opt for a zero dep car insurance. With such a policy, the car will be devoid of its general depreciation during insurance claims.
Hence, the advantages and disadvantages of both the categories have been equally covered here, and individuals can choose as per their requirements. But, buying a new car will provide the latest technology, extended warranty and other benefits. Also, one can have a car insurance policy with multiple add-ons that can save a substantial amount in case of accidents and sudden requirements. Regardless, the final call is up to you!