The Real Cost of Buying a New Car vs. a Used One

Total Cost of Ownership: The New Maths of Car Ownership in India

Get latest articles and stories on Business at LatestLY. Gurugram (Haryana) [India], July 29: Indians love doing the maths before making a big purchase. Before buying a car, we compare prices, watch countless reviews and ask everyone from our friends to our neighbourhood car expert if we're making the right choice. Business News | Total Cost of Ownership: The New Maths of Car Ownership in India.

The Real Cost of Buying a New Car vs. a Used One

Here’s the honest answer: for most buyers, a gently used car (three to five years old) wins on total cost, even though used-car loan rates are higher. A new car averages close to $50,000 and loses a big chunk of its value in the first few years, while a used car averages around $25,000 and lets someone else absorb that steepest depreciation. New cars come with lower interest rates and full warranties, but the price and depreciation gap usually m…