New VS Used - Key Pros/Cons

🚗 USED CAR — Pros & Cons

✅ Pros

1. Lower purchase price
   
   

   • You avoid the steep initial depreciation (a new car typically loses 20–30% of its value in the first year).
     
     

   • Can get a higher-end model for the same budget as a new base model.
     
     

2. Lower insurance & registration costs
   
   

   • Premiums and state registration fees are generally based on the car’s value, which is lower for used cars.
     
     

3. Slower depreciation
   
   

   • Most depreciation has already occurred; resale value holds steadier.
     
     

4. Wider choice for same money
   
   

   • You can choose from multiple brands, trims, or even a higher performance/luxury car within the same budget.

❌ Cons

1. Less warranty or no warranty
   
   

   • Unless you buy a “certified pre-owned” (CPO) vehicle, car might have limited or no manufacturer coverage left.
     
     

2. Potential hidden issues
   
   

   • Wear and tear, accidents, or poor maintenance can lead to higher future repair costs if not checked properly.
     
     

3. Outdated features or technology
   
   

   • May lack the latest safety features, infotainment systems, or fuel efficiency improvements.
     
     

4. Higher maintenance costs
   
   

   • Older cars need more frequent servicing, and parts can wear out.

🚘 NEW CAR — Pros & Cons

✅ Pros

1. Full warranty coverage
   
   

   • Peace of mind with 3–7 years of manufacturer warranty, often including roadside assistance.
     
     

2. Latest safety & tech
   
   

   • Modern cars come with advanced driver aids (ADAS), better fuel economy, and modern connectivity features.
     
     

3. Customisation
   
   

   • Choose colour, trim, and features exactly how you want.
     
     

4. Lower maintenance initially
   
   

   • Fewer repairs, predictable service costs, and sometimes capped-price servicing.
     
     

❌ Cons

1. High depreciation
   
   

   • A car loses thousands in value the moment it’s driven off the lot — typically 40–50% within 3–4 years.
     
     

2. Higher upfront & insurance costs
   
   

   • Bigger loan or cash outlay, plus higher premiums due to the higher value.
     
     

3. Limited negotiation room
   
   

   • Dealers often have smaller margins to discount compared to used cars.