Comparison: New Mahindra XUV700 vs Used Mahindra XUV700

The Mahindra XUV700 was launched in the Indian market in 2021, and it was seen as a successor to the XUV500 – the halo SUV from Mahindra at the time. In the time since then, Mahindra has sold more than 3 lakh units of the SUV in the Indian market. A new XUV700 could still command a waiting period of up to 1 month depending upon your region. Not just that, the XUV700 is one of the top SUVs from Mahindra, barring their EV portfolio, and is priced accordingly. Alternatively, a second hand Mahindra XUV700 will cost significantly less which is great for those who are looking to finance the purchase.

So, should you really be looking towards the used car market to bring home the XUV700? The XUV700 is well built and the SUV ages well, which also gives it an edge in the used car market. So, with the XUV700 locked in as your next car, should you really be heading to a Mahindra showroom to bring home a new one or will the used car market offer a better financial deal? We have put together this comparison to highlight the financial difference between buying a new and a used XUV700, ultimately figuring out which would be the better purchase for you.

New Mahindra XUV700 Quick Overview

The Mahindra XUV700 goes up against rivals like the Tata Harrier, Tata Safari, MG Hector Plus and even the Jeep Compass and Toyota Innova Crysta. The XUV700 can be had either as a 6 seater or as a 7 seater. Previously though, the XUV700 was also offered in a 5 seater configuration, although that has now been discontinued. The XUV700 is offered either in a FWD or AWD configuration, although the latter is reserved for the top end AX7 and AX7 L variants and only with the diesel-automatic powertrain.

Taking a look under the bonnet of the XUV700, it is offered with two engine options, with one being petrol and the other being a diesel. The petrol engine is a 2.0 litre turbocharged unit and it makes 200 PS of power, a first for an Indian SUV in this segment. In fact, if we only take into account SUVs with an internal combustion engine, the XUV700 continues to be the only SUV with 200 PS on tap, barring the Scorpio-N which is also made by Mahindra. The petrol engine can be equipped with either a 6 speed manual transmission or a 6 speed automatic.

As for the diesel engine, it has a displacement of 2.2 litres. However, it has been tuned so that it makes only 155 PS in the lower MX variant of the SUV. Furthermore, it is only available with a 6 speed manual transmission in the MX variant. The AX variants of the XUV700 are offered with a similar displacement engine, however, the power output is rated at 185 PS and it can be paired with a 6 speed manual or a 6 speed automatic transmission.

Key Updates of New Mahindra XUV700

Technically, the Mahindra XUV700 is a new model from the Indian carmaker, however, spiritually it is seen as a successor to the XUV500. As such, the XUV700 packs in many advancements over it that place it in a league of its own.

The design of the XUV700, although it draws inspiration from the XUV500, feels thoroughly modern and gives the SUV immense road presence. The bigger updates though has to be the advancement on the powertrain front, with the XUV700’s engines offering benchmark performance in the segment. 

Since its launch in 2021, the XUV700 hasn’t received any major updates. However, it still feels up to date today with its premium features. Mahindra offers a twin screen setup on the dashboard of the SUV powered by its Adrenox tech. One screen serves as the instrument cluster whereas the other also features touch capabilities and acts as the infotainment system.

The cabin ambience in the XUV700 is a step up from previous Mahindra models with the use of premium materials for the touch points. The XUV700 also has a panoramic sunroof, ventilated front seats and powered front seats along with a memory function for the driver seat, all of which make the user experience more premium.

The XUV700 also sets new benchmarks for safety. The SUV was crash tested by Global NCAP around the time of its launch and it achieved a stellar 5 star crash test rating. Not just that, the SUV is also equipped with features like 6 airbags and ADAS, which add to both passive and active safety of the passengers.

Used Mahindra XUV700 Quick Overview

Since more than 3 lakh units of the Mahindra XUV700 have been sold in India, the used car market is rife with options. As we mentioned earlier, the XUV700 is a standalone model with no previous generation models. At its launch in 2021, the XUV700 was offered with features that were still only making their way to mass market cars. However, it lacked one crucial feature which is highly important for car buyers in India, which is ventilated seats.

While the XUV700 is yet to undergo a facelift, it has been updated a couple of times in its lifespan. In 2024, Mahindra updated the SUV and gave it ventilated seats for the front seats. Apart from that, the SUV also got captain seats for the second row and a new Napoli Black colour. Additionally, Mahindra also added a memory function for the ORVMs of the SUV along with 13 new features to its Adrenox suite of connected car tech.

In 2025, Mahindra once again introduced an update for the XUV700, but this time around, it was purely cosmetic. It launched an Ebony edition of the XUV700 which basically was a blacked-out version of the SUV. It replaced the Napoli Black colour introduced a year ago. The Ebony Edition of the XUV700 is only available with the top spec AX7 and AX7 L variants of the Mahindra SUV.

New Mahindra XUV700 vs Used Mahindra XUV700: Financing Comparison

While we are talking about buying the Mahindra XUV700, there is a big financial difference between buying a new car or buying a used one. In fact, the used car market in India has been thriving in recent years as the cycle of car ownership isn’t as long as it used to be, with many new car buyers opting to change or upgrade their car after three to four years. Therefore, the used car market today offers a great place for savvy buyers who are looking to enjoy the premium experience of buying an XUV700 without spending over Rs. 30 lakh.

A used car will not just cost you less, however, if you are looking to finance the car, that is buy it using a car loan, a used car makes even more sense. To give you an idea of the difference between a new car and a used car loan, we have put together a small comparison in the table below.

For this comparison between financing a new and a used Mahindra XUV700, we have chosen the AX7 Luxury variant of the SUV with a diesel automatic powertrain and the optional AWD. This is the top spec variant of the Mahindra SUV, except for the additional Ebony Limited Edition which is a cosmetic upgrade. Additionally, for calculating the total price of a new XUV700, we have taken Mumbai as the reference city for the registration taxes. This cost will vary from region to region, however, the comparison gives a clear idea of the price difference between buying a new or a used XUV700.

Taking the down payment in both cases to be Rs. 6 lakh, the total loan amount difference between a new and a used XUV700 comes out to be just north of Rs. 8.5 lakh. This is primarily because of the difference in the price of a new and a used XUV700. With the used XUV700 being just three years old, it is evident that the price of the new XUV700 depreciates quite a lot in the first two to three years of ownership. Buying a used XUV700 allows you to skip this phase of excessive depreciation.

When we take a look at the rate of interest, it is 2.9% lower for a new XUV700 and that is because banks and other financial institutions charge a higher rate of interest when financing a used car. The rate of interest can change based on your credit history, however, a new car will always attract a lower rate of interest when going for a car loan. Despite that, the actual interest amount you pay over a 5 year period is about Rs. 1.5 lakh lower than the interest amount for a new XUV700. Ultimately, the total loan repayment difference between a new and a used XUV700 (barring the down payment) turns out to be a little over Rs. 10 lakh. 

The above example gives a clear picture that buying a used XUV700 offers monetary benefits when you finance the vehicle. Furthermore, the rate of depreciation for a car slows down after the first few years, meaning, a used XUV700 will lose less value over the next two to three years, compared to a new one.

New Mahindra XUV700 vs Used Mahindra XUV700: Insurance Comparison

The insurance cost is another yearly recurring cost that car owners have to take into account. Typically, the insurance premium of a car depends upon your broker, and the type of insurance you buy. Different brokers will charge different amounts for comprehensive or zero depreciation insurance. The insurance premium for a new XUV700 can balloon to over Rs. 1 lakh which can make a big dent in your finances. However, legally, you are only required to have a third party insurance for your vehicle, and the rates for third party insurance are fixed according to the engine capacity of a vehicle.

If you are looking to lower your insurance cost, buying a third party insurance is the best way to go. A new XUV700 will come with a three year third party insurance as it is mandated by law. However, once the three years are over, car owners are free to renew their insurance premiums on a yearly basis, and the cost of third party insurance for the XUV700 is given in the table below.

If you do opt for comprehensive or zero depreciation insurance for your XUV700, the insurance premium will still be lower for a used XUV700 due to the depreciation. That said, insurance companies reward those who have not made any claims on their policy. The insurance premium gets lowered through a No Claim Bonus or NCB. It can amount to a total of 50% if the vehicle owner has not made any claims on the policy for five consecutive years.

Thus, if you do end up buying a used XUV700, look out for units that have not undergone any insurance claims. Ultimately, the insurance premium for a new XUV700 will always be more than that for a used one, making it a more financially appealing decision.

New Mahindra XUV700 vs Used Mahindra XUV700: Which to Choose?

The Mahindra XUV700 is a premium SUV and to buy a new one, you will have to shell out the full cost. Furthermore, a new XUV700 can also have a waiting period, meaning you will have to wait longer to bring home your new car. Keeping all the above calculations and the waiting period in mind, it makes more sense to buy a used XUV700 for most buyers, especially if you will be availing a car loan to make the purchase.

FAQs about Mahindra XUV700