I am an owner of a second hand car - Maruti 800 STD. My opinion after buying a second hand car is that if you can wait and buy a first hand car, please do that. This is advisable for the following reasons:
Second hand cars are not too cheap as compared to a new car. This is only in the case that the second hand car is really an old model, and purchasing such a car is not advisable if you can wait. This is because the amount of money you’ll spend on maintenance is a little high. Moreover, you cannot keep that car for long and there will be an effort required to sell that car to someone. You may also not get a good price for that.
With banks providing easy car loans, it’s always better to go for a new car based on your budget. There are plenty of choices to pick up from. Even if you buy an used car on loan, the EMI will not be very different because old car loan tenure is much less as compared to that for a new car.
If you buy an old used car, getting it into shape will itself cost you a lot of money, except if that car is in very good condition. Lot of fittings that you may want for that car, like an AC, will not be feasible, either because it will be incompatible or will put a huge load on that car(like an AC. Even an old AC fitted car puts a lot of load on engine.)
Now for the monetary part. Suppose your loan tenure is 4 years of the used car, and if you decide to get rid of it and buy a new car before the loan tenure is over, you’ll have to close the existing loan and then only you can sell it. I am not sure if there is a facility for loan transfer. So please check this out. My advise here, never take an used car on loan if you can.
I, for one, am stuck up with my old car even if I can buy a new one. So wait if you can and then buy a new one. In this caes I can say safely that’Old is not gold’.