A new car is a motor vehicle sold by the manufacturer to the dealer. Whereas a used car is a vehicle that has been owned and is used by more than one owners. Thorough research helps you to decide if you want to buy a brand new or used car. Budgeting aspect plays an important role while deciding to buy a new and used car is financed.

Let us discuss in detail the advantages and disadvantages of new and used cars.

Advantages of a new car

• You get the possession of the car and you will be the registered owner of the car.
• After purchasing a car, the dealer offers to provide free servicing for a few months. Sometimes issues like repairs and maintenance costs are also borne by the dealer.
• Manufacturer or dealer offer extended warranty for a period of two to three years and assure to compensate for any damages.
• The dealer offers to provide free assistance in case of emergency. He acknowledges your emergency helpline numbers in case of accidents or breaks down.
• The advantage of owning a new car is that you get to use the latest gadgets and accessories.

Disadvantages of a new car

• Cost of purchasing the vehicle will be your sole responsibility. Additionally, you will have to pay for road tax.
• Depreciation costs will be applicable from the time the new car hits the road.
• Damages are bound to happen. The cost of damages is to be borne by the owner.

Advantages of buying a used car

• You will be able to buy the car of your at affordable price.
• No need to make additional payments for road tax and insurance.
• The task of ownership is carried out without much paperwork and complications.
• The depreciation costs are lower in the case of used cars.
• You can make any number of changes to the vehicle and make it better than the new car. Ignore the manufacturer’s warranty.

Disadvantages of a used car

• You will be using the older version of the car. Additionally, the special attributes, technology, and gadgets of the vehicle will also lose importance. In fact, replacing old parts with new ones would be the most tedious task.
• Undisputed issues relating to accidents might crop up when you purchase the used cars. The previous owner might not reveal these facts to you before buying the vehicle.
• Maintenance costs are the biggest drawbacks of buying used cars. You will end up paying more for repairs and maintenance costs
• Cash payments prove to be beneficial in case of buying used cars. Since the rate of interest is higher for used cars. Finance from other institutions will complicate the situation.

Still not sure to buy a used car or new car? The above-discussed pros and cons of a used and new car might confuse you more. It is better reached at a decision as early as possible. Since there is an upsurge in motor vehicle taxes and costs. Therefore, buying a new car or used car depends upon various factors like rate of interest, initial payment, operational costs, loan amount and duration, and clean documentation.