New Cars: Pros & Cons
Pros: Full warranty, latest technology, zero mileage, financing options available. Cons: 30% depreciation in first year, high initial cost, insurance premiums higher.
Used Cars: Pros & Cons
Pros: 50-70% cheaper than new, slow depreciation, lower insurance, wide selection. Cons: Limited/no warranty, hidden damage possible, maintenance needs unknown.
Financial Analysis
A used 2015 Toyota Axio (Rs 3.8M) vs new 2024 Axio equivalent (Rs 6.5M). Over 5 years, used car total cost is Rs 4.2M. New car total cost is Rs 7.5M. Used car saves Rs 3.3M.