You have finally made up your mind. You’ve decided to go ahead and buy a luxury car and realize that much-awaited childhood dream. But then, that big question arises: Should you purchase a brand new luxury car or reap the financial benefits of a second-hand car?
While the idea of buying a shiny new car has its charm, the same can be said for the prospect of investing in a second hand luxury car and saving lakhs of rupees. But that’s not it. There’s a long list of pros and cons for both of these options.
But before we dive into the advantages and disadvantages of going with either option, let’s explore the current used luxury car market in India with some vital statistics relevant to our big debate—second-hand car vs. new car.
New Car vs Used Car: Some Statistics from the Luxury Automobiles Segment
India’s used luxury car market has shown consistent expansion over the years, growing at an annual rate of 20%.
In comparison, India’s new luxury car market in 2024 grew by just 6%, selling around 51,200 units, with Mercedes and BMW registering increased sales.
The growth in the pre-owned luxury car market in India is driven by young professionals between 30 and 40 years of age who are increasingly willing to buy their favourite luxury car early on in their lives. Source
According to a survey conducted with Auto Dealers in India, the demand for pre-owned luxury vehicles has increased by 35–40% year on year. That is because a huge chunk of luxury car owners tend to upgrade after just one or two years of ownership. Source
India’s pre-owned luxury car market has been predicted to grow at a CAGR of 16.3% between 2024 and 2032.
These numbers tell us clearly that more and more Indians are beginning to fancy buying luxury cars. While some are purchasing brand-new luxury automobiles, others are going for pre-owned luxury cars in India.
So, let’s analyze the pros and cons of both to help you make a well-informed choice.
Pros and Cons of Buying a Used Luxury Car
Thousands of Indians buy used luxury cars every year. But just because they’re doing it doesn’t make it the better option, does it? So, let’s explore the important advantages and disadvantages of buying a pre-owned luxury car in India.
Pros
- Any used luxury car will cost you around 30% to 50% less than the brand-new version of the same. So, you get the same set of features and the same style at a fraction of the price.
- New luxury cars depreciate the most in their first year of use. So, buying a pre-owned luxury car means that you entirely skip that 1st year which brings maximum depreciation. Naturally, your secondhand luxury car will depreciate, but the rate will be much slower.
- Compared to their newer models, used luxury cars have much lower insurance premiums. So, here’s another area where purchasing a secondhand luxury machine saves you some money.
- With the rise in used luxury car dealerships, you can always find places to buy that offer a range of Certified Pre-Owned (CPO) benefits like warranty and inspection.
- Lastly, when you buy your favourite luxury car from a user car provider, you get all the features and interiors that you dreamt of without burning your pockets.
Cons
- Sometimes, the options available in the used luxury car market are not as diverse and vast as the new luxury car market. So, while scanning the market for a used luxury car, it might be challenging to find one that has the exact features and style you are looking for.
- Used luxury cars come with a higher mileage, which takes a toll on their lifespan. This can be a deciding factor if you’re out to buy a car for the long run.
Pros and Cons of Buying a New Luxury Car
From the outset, buying a brand-new luxury car seems like a dream, doesn’t it? But when you look closely, you’ll find that it has its risks and disadvantages. Let us dissect them for you here, along with the benefits.
Pros
- First of all, buying a new car comes with a whole host of the latest features. Furthermore, a shiny new luxury car will be backed by the most cutting-edge technology. Be it technology, design, fuel efficiency, or safety, you’ll get the best of what’s trending in the market.
- New luxury cars come with attractive manufacturer’s warranties. So, if anything goes wrong in a new luxury car, it is probably covered by the warranty.
- When you buy a new car, there are no previous owners to worry about and no history of misuse that might have hurt the machine’s health. So, you make a fresh start with a new luxury car.
Cons
- A brand-new luxury car will lose up to 30% of its value in the first year, thanks to depreciation. This makes buying a new luxury car a much costlier investment compared to buying a pre-owned car.
- When you buy a new car, you get a premium automobile, but you also pay the ‘premium’ price. Luxury cars cost a fortune today, while a lightly used pre-owned luxury car can offer a similar feature set at a much lower price.
- We come back to the money factor, again. A brand new luxury car will come with additional expenses in the form of higher insurance premiums and road taxes.
New vs Used Luxury Car: The Verdict
Of course, a shiny new luxury car is the stuff of dreams, right? But it also comes with drawbacks such as rapid depreciation, higher insurance premiums, and increased upfront costs.
Meanwhile, a carefully picked pre-owned luxury car can give you, more or less, a similar set of advanced features, prestige, and performance. But it does that at a cost that is much lower than the former.
However, picking a side in the new vs used car debate depends on your needs and preferences. What is your budget? What is your intent behind the purchase? Are you willing to pay the higher premiums and suffer the depreciation hit?
Once you have a clear answer to these questions, you’ll know what’s right for you between a pre-owned luxury car and a brand new one.
Motozite | Where Luxury is Within Reach
At Motozite, your dream of owning a luxury car is not some far-fetched aspiration that may or may not come true. Instead, we bring luxury well within your reach and help you realize the dream of owning your favorite luxury car.
Our platform offers a seamless and trustworthy experience for customers looking to buy used or demo luxury cars. Be it our vast and diverse collection or prompt customer service, we’re your go-to destination to shop for the classiest luxury cars in India.