Car shopping: New vs pre-owned

Second-hand cars or pre-owned vehicles have really come into their own in the last few years. Gone are the days when a second-hand car was a sureshot sign that you couldn't afford a new one, or when used-cars were looked down upon as poor cousins of the 'new car'.

Today, the market is flooded with incredible used cars -- not very old, not run much, and almost as good as new. Interestingly, there is no dearth of buyers who are choosing to purchase a used car over a new one.

If you are in the market for a set of wheels, and have not considered this option yet, you could be losing out on a chance to get a great car and save lakhs of rupees. Read on to find out if a used car suits you, and if it does, how you can bag the best deals in the market.

veriCAR is India's first independent used car inspection and certification company. veriCAR uses its expertise to help used car buyers make better purchase decisions, and ultimately enables them to buy the right car, at the right price.

Unlimited options and wide choice

You can choose your brand and your model. You can choose what colour you want the body to be. And you can choose the colour of the seat fabric. Some new (and expensive) models give you the option of completely customising every detail on the vehicle, making the car a reflection of 'you'.

That 'new car' feeling

Let's face it, few things come close to the smell of a new car. Everything on a new car is, well, new. And that is what most people dream of owning -- a new car, untouched by anyone else, straight off the assembly line.

Peace of mind

New cars are covered against manufacturing defects and faults by the manufacturer for 12-18 months. Also, since the car has not been used by anyone else in the past, it has no secret history for the buyer to be wary of. The condition and price of a new car are transparent, and that makes the deal slightly less risky as compared to a second-hand car purchase.

Depreciation depression

New cars lose value really quickly. This loss of value slows down as the car gets older. That's slightly counter-intuitive, but it's true. Some models are known to lose up to 40 per cent of their value in the first year alone.

Money, money, money

Cheaper to buy

A Honda City for Rs 6 lakh sounds like a steal. And if it's a well-maintained car like the one Arun has chosen, then it is a steal. Used cars are usually significantly cheaper. Plus you will not incur registration and taxation costs. If you decide to buy second-hand, you can get the same car (say a Getz that Rakesh wants) at a far lower price, or you can buy a bigger, better car (say a City, that Arun wants) for the same price.

Cheaper to own

A used-car has already lost a big chunk of its value, and is going to depreciate much slower in the next few years. That has a positive impact on the cost of ownership, and you lose far less over the three years that you will own the car, as compared to a new car.

No additional expenses

When you purchase a used car, you are paying for the car on an as-is-where-is basis. You don't incur any additional expense on accessories like seat-covers, floor mats, fog lamps and a decent music system. In all probability, the first owner has already done all this for you.

Perceived risk

You don't know how the car has been driven and maintained. You are not aware of its accident history. You are putting a large portion of your hard-earned money on a transaction with a guy you have just met. This can be scary. But if you get the car inspected, checked and verified by a competent, independent authority, you have information on your side. And then you have nothing to fear.

Possible expenses on the car

You might have to incur some expenses on servicing the car, setting things right and repairs if required. The wisest thing to do would be to keep away from a car that comes with baggage, and buy one that has been kept lovingly. Once again, a competent person who knows cars inside out will be able to help you with everything you need to know. Most people take a trusted mechanic along, or a friend who knows a little bit about cars. There are professional services you could choose to help you out with this information.

Limited choice

You will probably not get as much choice and flexibility in customisation as you get with a new car. You might have to make your peace with that white Honda City, even though you would really have liked to have a golden one.

So that's what there is to know about choosing between a new car and a used car. But what about you? Are you more Rakesh than Arun? Or is it the other way round?