New Delhi, Sept. 27 -- A Rs.10-15 lakh budget can leave car buyers with a tricky choice. They can put the money into a new, lower-end model and get a full warranty, newer technology and the certainty of being the first owner. Or, they can look at the pre-owned market and potentially get a larger, better-equipped car that would have been out of reach when new.

The second option may look like a smarter way to stretch the budget, but a lower purchase price does not tell the whole story. A used car can come with higher financing costs, a shorter warranty, greater maintenance needs and a different depreciation and resale profile. The right choice therefore depends on what the buyer values and what the car is likely to cost over the entire per...