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Used car vs Brand new car, what works in 2020?

Should you buy a used car or a new car? This is a tough choice for many car buyers in India, especially first-time car buyers. Today, there are so many options to choose from that you may find it confusing to say the least. So if you are amongst those who aren’t sure what to do, we are here to help you make a decision

Top Reasons to Buy a Used Car:


If your budget doesn't allow you to buy a new car, the only option you have is to buy a used car. But, it comes with some perks. You don't have to pay road tax (10% for cars upto Rs. 10 lakhs, and 15% for cars above Rs. 10 lakhs) for a used car. You can also buy a segment up for a lower price compared to a new car. Meaning, cars like Swift and Grandi10 (Rs. 6 to 8 lakhs category) will be available at the price of a WagonR or a Santro (Rs. 4 to 6 lakhs category).

Beginner/ Novice driver:

If you are the one who has just started to hone your driving skills, it is better to choose a used car, especially on Indian roads. Imagine a scratch or a big dent on a brand new car. Your heart will explode! Incorrect use of gears and other mechanicals might lead to early wear and tear in a new car.


The depreciation of a used car is considerably less than a new car. For a new car, depreciation will be high during the first 3 years. This will also come handy when you plan to resell your car.


If you are the one who likes to glam up your car with all the fancy accessories, a used car is the one to go for. New cars come with a manufacturer’s warranty for 3 years. Fitting accessories that are not recommended by the manufacturer will make your car’s warranty null and void.


Generally, used cars come with Insurance, even otherwise a one-year-old car’s insurance will cost less than a new car. For Instance, a new Maruti Swift’s Insurance might cost around Rs.17,000/year. Insurance for the same car after a year will only cost around Rs.11,000/year. Check out Chola MS insurance cost here

Top Reasons to Buy a New Car:


The very purpose of buying a new one. If the budget allows you and you love getting your hands on a brand new car and show the world what it means to you, then there is no looking back.

Latest Tech:

In a new car, you can expect all the latest features both in terms of driving (better engines and hybrid/electric options) and also in the in-car entertainment (touch screen, android auto/apple car play, voice command, etc..). If you love all the bells and whistles, a new car is the go-to option for you.


After the recent Government regulations, car buyers have slowly started to pay attention to vehicle safety. Carmakers have noted this and are making cars with better structural rigidity, offering more airbags and providing an Anti Lock braking system (ABS) and Electronic Stability Control (ESC) as optional packages even in base variants. If safety is your priority (which should ideally be) then you ought to buy a new one.

Peace of Mind:

As the car is brand new, you would get 3 free services from the dealer and you don't have to put so much care in its initial years. So you can forget about the maintenance and enjoy the time with your car.

Manufacturer Warranty:

A new car comes with a manufacturer warranty of upto 3 years (depending on the OE). If something goes wrong with your car (mechanically) in this period, the manufacturer will be liable to replace it free of cost.

We hope this will give you more clarity to arrive at a decision. Irrespective of what you choose, Chola MS has got you covered on the insurance part. Happy Motoring!

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