New Car Vs Old Car | Which One Should You Buy In 2023 |

May 24, 2023 Adhar Loan, Bank Loan, Car Loan, Loan In English, Online Loan Leave a comment 585 Views

So in future if you are going to buy a car and you are worried and confused about whether you should buy a new car or an old car. So if you are not able to take this decision easily, then you must read our article till the end because after reading the article till the end, you will know yourself whether you should buy a New Car or an Old Car.

In this post, let us take an example, that there is a person named Rahul and he wants to buy a car for ₹7,50,000. Suppose Rahul has already saved ₹1,00,000 to buy this car. He will meet the cost of the remaining car from the loan given by the bank. We will also assume that Rahul will keep this car for 5 years.

Cost Of Buying The Car

We will tell you the cost of both new and used car. If you want to buy a New Car then how much will it cost you? and if you want to buy an Old Car then how much will it cost you? We are assuming one thing, that whether Rahul wants to buy a New Car or Rahul wants to buy an Old Car, he will take a Car loan from the bank.

Cost Of Buying A New Car

If Rahul makes a down payment of ₹ 1,00,000 and takes a loan of ₹ 6,00,000 from the bank, on top of which he has to pay an EMI of ₹ 12,500 every month. So in this way Rahul will give ₹7,50,000 to the bank in the coming 5 years. Along with these, registration fees and different types of taxes will also be imposed on Rahul, whose cost we assume to be ₹50,000. All this together will make a total of ₹9,00,000.

Hence, in this way if Rahul wants to buy a New Car for ₹7,50,000, he will have to buy that car for ₹9,00,000.

So we told that if Rahul wants to buy a New Car but what if Rahul wants to buy the same car second hand i.e. he has bought a used car at a lower price.

Cost Of Buying An Old Car

Let’s say Rahul goes to buy an old car and he wants to buy an old car for 3 years. And as you know, if you take a loan from the bank to buy an old car, then you get that loan expensive. So let’s say if Rahul gets ₹3,00,000 loan from the bank for 5 years at an interest rate of 14.5%.

So if Rahul makes a down payment of ₹1,00,000 on which he will take a loan of ₹3,00,000 from the bank and every month he will have to pay an EMI of ₹7,000. In this way, Rahul will give 4.2 lakh rupees to the bank in 5 years.

Thus, it will cost Rahul ₹ 5.2 lakhs to buy the old car.

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So you have come to know one thing that Rahul is finding it expensive to buy a new car if we compare it with the old car. But as we know that even if Rahul will drive the car, there is a separate cost of driving the car.

Cost Of Running A Car

Cost Of Running A New Car

Let’s assume that the price of petrol is ₹105 and the efficiency of the car that Rahul wants to buy is 18 km. So in this way, the cost of oil becomes Rs5.83 for 1 kilometer. And if Rahul is driving that car 500 kms in 1 week then the running cost of that car for 5 years becomes 7.5 8 lakh rupees.

So till now Rahul has ₹9,00,000 to buy the car and if he drives the car then he will have to see the expenditure of about 7.5 lakh rupees. So Rahul has to spend about 16.5 lakh rupees for 5 years.

Cost Of Running An Old Car

So if Rahul has bought an old car, he will also drive it. So as you know, as the vehicle gets older, its average also decreases and we assume that earlier the average of the vehicle which was 18 km per liter, now it has become 14 km per liter and the price of oil is one. As it is i.e. ₹ 105 only. So in this way Rahul will need 7.5 rupees of oil to drive 1 kilometer. And he drives the car 500 kms every week, then in the coming 5 years, the cost of running his old car will be 9.75 lakhs.

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Total Cost Of Maintenance & Insurance

Now if Rahul wants to buy a vehicle, he will drive it and it will cost him some money to maintain that vehicle and he must have taken some insurance.

Cost Of Maintenance A New Car

Let us assume that Rahul does not have to do any kind of maintenance in the first year but in the second year he has to get the maintenance done which costs ₹ 5000. And this maintenance cost increases by 25% every year i.e. the total cost of maintenance becomes ₹ 29000.

Cost Of Insurance Of New Car

Now Rahul must have taken some insurance also and in the first year the cost of insurance becomes 16000 and every year the car costs 10% less. But due to inflation, the insurance company keeps teaching the price by 10%, so in this way you will have to spend ₹ 80,000 for insurance.

So in this way Rahul will get to see the total cost of Maintenance & Insurance ₹ 109000.

Cost Of Maintenance & Insurance of an Old Car

If the maintenance of the car costs ₹ 10000 in the first year and ₹ 12500 in the second year, then if it is increased by 25% every year, then the maintenance cost of the old car is ₹ 82,100, which is 1.5 times more than the new car. . So in this way Rahul is getting to see ₹ 50000 more in the cost of maintaining the old car.

If it is assumed that Rahul sells the new car after 5 years, which he sells for ₹ 100000, then the total cost of the new car becomes ₹ 15.75 lakhs. So in this way Rahul is saved from ₹ 50000 New Car.

So friends, everyone says that buying an old car is cheaper, but if we tell you the calculation, then it seems that the old car There is no more benefit than ar in the car because the cost of running the old car is more than the new car and even if you want to sell the new car, it is sold at a higher price than the old car.

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Disclaimer

If we assume that we buy a second hand car in cash only, then the interest we have to pay on the loan taken from the bank will be saved, so in this way we will find the old car very cheap. And in the above post, we have kept the price of petrol only ₹ 105, although the price of petrol will increase in 5 years, in such a situation, you will get to see the cost of the vehicle differently.

Do tell us below what you think about this post of ours and if you want information about bank loan, then you can also tell us below. So friends, that’s all in this post of yours.