Old car or new car? Which one you should buy in 2022

Buying a car has always been a very difficult decision. In order to buy a new car, you have to go through a bunch of different and tough choices. You have to choose from many different models as well as features. While nowadays you also have the option to choose whether you want a new car or an old one.

The value of a car depreciates with time. Consequently, it’s not an investment. So you have to be very sure about its cost-effectiveness. You should keep an eye on the price and kilometers ratio and if you are only going to travel some short distances every day, then is it important to buy a car?

And if you’re buying a second-hand car then you should also keep some things in mind. Such as the mileage of an old car is comparatively low and it also comes with a high maintenance cost. Should you go for an old car? So, let’s take a look at the topic in brief.

Advantages of buying a new car over an old car

1. An old car comes with a high maintenance cost because it has been used in the past. But a new car has low maintenance cost because evidently, it’s new. For a new car, no maintenance cost is required for the span of almost 6 months to 1 year. After that, you should get your car serviced for a better car life.
2. Technologies in new cars are much more advanced as compared to the old ones. The automobile industry is growing day by day and they add new features to their vehicles. But if you buy a new car, you won’t be able to utilize the features. A very crucial example of this is, that new cars are equipped with new safety measures. And safety is one of the most prominent points that affect the selection of cars.
3. A used car comes with a higher interest rate than buying a new car. Although, these days getting a car loan is quite easy. But the point that hinders the purchase is the interest rate. For instance, SBI provides a loan in order to buy an old car, but the car should not be older than 5 years.

Benefits of buying an old car over a new one

1. Simply, if you go for an old car, you don’t have to pay registration fees, road taxes, RTO fees, and various other taxes. But if you have a new car, all these taxes will get arisen and you have to pay them from your pocket.
2. The rate of depreciation varies in old and new cars. The depreciation rate of an old car is lower than that of a new car. For instance, an old car usually has a depreciation rate of 20% while a new car’s depreciation rate can rise up to 40%. Majorly, most of the depreciation takes place in the first 3 years.

Aside from the points mentioned above, you should also consider how you are going to make payments for your car. Be it new or old you for sure have this streamlined in mind if you want to opt for a loan or buy it completely on cash. Anyway, it’s good to check out how you plan to make payments for your car. Recently when we were looking to buy a new car on loan for my brother, we checked various parameters on car payments. It’s best to be prepared for how much can you afford to pay monthly for your car along with other unavoidable expenses. With the decent size of down payments and accurate calculations on car payments, we felt quite sorted and comfortable buying the car.

If you are also looking to buy a new or old car on load and looking to calculate expenses so do check out this website. It has the wonderful ability to calculate car price that fits a monthly payment or loan payment amounts. This website provides various other calculators as well and I found the one which helps calculate fuel budgets also very helpful. Do check out, calculate for yourself and then make a smart decision on bringing yet another member of the family in the form of a car.

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