Confused between buying a Used Vs New Car Market? Here is some help!
A car is a dream for many of us, and the number of first-time car buyers is increasing daily thanks to the increase in per capita income and here you are confused in Used Vs New Car Market. Moreover, the companies and car dealers have made the car buying process pretty simple and easy to finance. Considering the new normal after COVID-19, a car is regarded as the safer option for travel.
Buying a car is the most important and quite expensive decision you need to make. Thus it is also important to do your right research on the internet and test drive several cars to make your final decision. There was a time when People used to only consider new vehicles straight from the showroom as a first purchase. Whereas as of today, pre-owned or used cars have also created a boom in the market. The mindset of car buyers is changing nowadays, and they are looking for quality overlooks. Hence we can easily spot the growth in used car markets. It is easier to find a used car as good as a new car.
Generally used cars come with a warranty of six years, and thus you can always return them if you are not satisfied. However, you may feel the urge to buy a new car if you have a huge budget to spend. Previously, it was difficult to locate a used car dealer; however, in this digital age, it is relatively simple to identify the ideal used car near you in a matter of minutes, with suitable financing options.
The confusion between a new car and a used car is never-ending. Generally, buyers tend to go for the new cars without any second thought; however, one can also consider getting a used car on a reasonable budget. Here is a guide to help you decide on getting a Used Vs New Car Market.
Should you buy a used car or new car?
Now that you have decided to buy a car, it is important to understand the difference between Used Vs New Car Market. Here we pen down the advantages and disadvantages of used and new cars. Let’s take a look.
Advantages of Buying a New Car
- The first benefit you can experience with a new car is the feel. There is no better feeling than getting a brand new car with beautiful interiors. You will be pleased to experience everything from the shining new color and the smell of a new car to the sound of an engine reviving.
- Every one of us looks for new features while getting the new cars. With the state-of-the-art features installed in a new car, you can certainly be assured that you are getting a perfect piece of beauty for yourself. Whether you get the best deal with the used car, however, nothing can match the thrill and performance of a new car. Thus if you consider this while calculating your travel expenses, you are sure to save a lot.
- Moreover, you do not have to pay for the servicing during the initial years after getting a new car.
Disadvantages of Buying a New Car
You have seen a lot of benefits of getting a new car. Now let’s look at some of the disadvantages as well.
- One of the first disadvantages is the budget. There are times when you may get an offer for a new car higher than your decided budget. At this time, buying a new car can be a pain.
- Moreover, getting a new car also comes with many other expenses, including registration services, RTO, etc.
Advantages of Buying a Used Car
Let’s talk about getting a used car. First, We will throw light on the benefits of getting a used car. A used car is not a brand new one, and thus it comes at a lower cost than the newer ones.
- Generally used cars come with a lower selling price depending upon their usage. Various factors bring down the cost of a used car, and thus, the buyers can get the same model at a lower price.
- Coming to the performance of the used cars, you can be assured as it comes with certified reports. Thus you can always check the reports before deciding to buy that car.
- The final point is the lower insurance and loan amount. Since the used cars have a lower amount, you can always get the finance with lower interest. Besides this, the insured declared value is also lower; therefore, the insurance premium amount also gets lower.
Disadvantages of Buying a used car
- Since the used cars deliver lower mileage than the new cars, it can be considered the biggest disadvantage. If fuel efficiency is the major factor you are considering while making your car buying decision, then a used car may not be the right choice.
- The second factor is the maintenance cost. If the car you are getting has been maintained properly, you would not have to shell out a big chunk of money for it. Thus it is important to check the car service records before deciding.
Is the second-hand car market booming?
Pre-owned or used cars have shown significant growth over the past few years and are certainly larger than the new market. If you check the statistics for the year 2018-19, you will find the recorded sales for new cars of 3.6 million units whereas the used cars recorded a sale of 4 million units.
The growth rate in new car sales has slowed for various reasons, including a cyclical slowdown in auto sales during election years and an overall slowdown in
economic consumption. Experts say a downturn in new car sales could indicate that demand is shifting to the used market. Some car dealers prefer to replace their old vehicles with pre-owned vehicles rather than purchase new ones.
What is the future of the new car market?
Purchasing A car is not a simple decision. Not only do you have a variety of models to choose from, but you also can purchase a New Car Market. Electric mobility, driverless cars, automated factories, and ridesharing are just some of the common disruptions that the automotive industry faced before The COVID-19 crisis. As new vehicle inventory has depleted, shoppers have devoured used vehicle inventory as well, causing price increases across the Automotive spectrum. In the spring of 2021, conventional wisdom predicted that all of these pressures would subside as vaccines arrived in time for the pandemic, promising better deals for shoppers willing to wait out the storm.
What is the future of the used car market?
The used car market will expand at a compound annual growth rate of 11%, with sales reaching 8.3 million units by FY26. Over the next five years ending in FY26, the New Car Market is expected to more than double to 8.2 million units or $47 billion, up from 4 million units or $17 billion in FY21, implying that two used cars will be sold for every new car sold. The used-car market was 4.4 million units worth $19 billion in the pre-pandemic FY20, with a clear highway for the used-car market is driven by pandemic-induced demand for personal mobility and Affordability because the cost of Used Vs New Car Market has been on an upward trend.
What is the best age of a used car to purchase?
Overall, the best age to buy a used car is around the 5-year mark, as this minimizes depreciation and maximizes reliability for the price you’ll pay, which means you are less likely to have any issues or need to pay any additional costs for later on, which is a major problem with really cheap or much older vehicles. The perfect age to buy a used car is highly subjective and depends on your priorities. Buying a used car that is only 2-3 years old saves you a lot of money over purchasing a new car, and you get a nearly new car. However, if you are willing to forego styling and features, a potentially five-year-old vehicle offers even greater savings and is unlikely to depreciate.
Do your homework and ensure that the model you’re thinking about has good reviews and is dependable. If you know nothing about cars, you should have a reputable mechanic inspect the vehicle, especially if used. If you are getting finance to buy a car, shop around for the best loan, and don’t be afraid to bargain for the best price.