EV, Investment, News

Used Or New Car: Which Makes More Sense During The Pandemic?

Ever since the pandemic, the global automobile makers have seen their fortunes being hit starkly. Falling demands (people were placed under lockdown), production problems (semiconductor shortage) and the fears of the virus forced people to cancel bookings.

Many leading experts have pointed out that the pandemic has played a major role in affecting and influencing changes in the world’s mobility and transportation. Even after the economies started opening up, people were reluctant to start using public transport again.

One of the most interesting fallouts of the pandemic has been the increasing demand for used cars. Economic uncertainties, depreciation assets, and long waiting periods for new cars have forced more and more people to head to car dealerships and pick a vehicle with low mileage.

In this article, we are going to address an issue that a lot of potential car buyers are interested in, namely, should they invest in a new car or make the sensible decision of getting a used one instead. If you or someone you know is looking for answers to this rather important question, stick around with us till the end of the article.

Reasons Why Buying a Used Car makes a lot of sense during the Pandemic

According to leading used car dealer, Think One, the following are some credible and rational reasons why individuals and families should go for used cars until the pandemic lasts-

  1. Used cars are financially lighter on the pocket. If you are uncertain about what the economic future holds for you, you might want to save as much money as possible.
  2. In recent years, the used car market has seen an influx of traditional lenders that are willing to offer finance for the models. This along with complete insurance has helped.
  3. New car models have been experiencing longer waiting periods. Parts shortages and semiconductor problems mean you will have to wait for periods more than a year!
  4. Public transport is not safe, no matter how many precautions you are taking. It is best to avoid buses, trains, taxis, and Ubers at least till the period when the pandemic ends.
  5. You can buy used cars completely through an online platform. This ensures that you are minimizing human interaction and getting the vehicle delivered to you at home.

Apart from the above reasons, carmakers have increased the prices on their entire model range even during periods of low sales. If you were looking for a great discount on the new vehicle, you probably will not end up getting anything!

Buying a New Car during the Pandemic: Why it still works for some?

While the above tangible reasons make a lot of sense, there are still some buyers that will always find the car buying experience to be attached more to emotions, than to financial logic.

That is alright. There will always be individuals and families that like the experience that a new car brings. There are millions of people all over the world that have not been as affected by the pandemic as some others have been. For them, buying a new car might not be such a source of the financial drain as it would be for the vast majority of us.

In this regard, one area that has seen growing interest in the new car ecosystem has been the demand for Electric Vehicles (EVs) and Hybrid Technologies. People are flocking to invest in EVs on the back of rising fuel prices as well as for the novelty factor. This has seen almost all major automobile manufacturers commit to EVs, with some even promising to shift completely.

The following are some reasons why people are still choosing to buy new cars during the pandemic-

  1. Carmakers are coming out with a spate of new models offering the latest in terms of safety, technology, and comfort. The quest for newness is attractive and emotional.
  2. Newer cars are being made keeping in line with the latest in vehicular safety. Several individuals and families have started considering this as an important factor.
  3. Several governments have come out with policies and fuel emission norms for older vehicles. Since they can only be used for a few years, consumers are looking at new cars.

The Bottom Line

To be frank, the only thing that matters when it comes to making a choice between a used and a new car is where you stand economically. If you have been minting money right through the pandemic, then you do not have to think about not buying a new car. On the contrary, if you are worried about rising costs, and want to ensure that you have a financial safety net to last you for at least the next two years, then a used car makes a lot of sense.

More on this topic: 

Advantages of Electric Cars Over Fossil Fueled

Previous ArticleNext Article