First time car buyers always face this dilemma. I most certainly did, maybe more than others but there is nothing wrong in having two options rather than just one. For some people, owning a brand new car is a distinct feeling beyond compensation. Nothing wrong with that, after all it is personal preference. Others might calculate the amount of money involved in buying new one vs. buying a used car. Again, nothing wrong in this approach either. One should however keep in mind that after a couple of years, the new car does not look as new as it used to be during its first few months, but you would probably be paying same amount of money every month on the installments and will continue to do so if you haven't paid the substantial money upfront for the purchase. Old car can save you a lot of money but it might require frequent visit to the workshop if you haven't got a good used car. Here are a few points that you should keep in mind while making this decision( the decision should be yours)

- Why do I need the car?
- How much money can I afford to pay upfront, will I be taking loan? If yes, for how long? Loans are not as straight forward as the car salesman tell you.
- What models have I short listed? Can I afford a brand new car for these models.
- What does your family(wife/husband/kids) think about a new car, or an old car for that matter?
- How well will I be able to maintain the new car? Are there any chances that I might make it look worse than an avg 2 yrs old car in two years?
- Am I getting a good deal in a used model, how old is the model?
- What is the annual depreciation of new model? If I sell my car in two years, how much will I actually get? Will I have to put additional money to pay off my bank loan?
- Same for the used car.
- If you have already seen a used car, who was the past driver and how many? A teen, a farmer, a doctor? You know what I mean. What is the service history of the car? Has this been over used or under used. About 20K per year is the normal use of the car.
- Also keep in mind the cost of transfer of the vehicle, resale agents choose to ignore it until you sign on the last piece of paper.
- Avoid accidental cases at all costs.

From my article, you would have got a sense that I am more biased towards a used car, I think I am and it makes sense for new drivers to polish their skills on a used car. You get absolutely amazing deals on used cars these days, with so many of them very well maintained by their previous owners.

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