Comparison: New Mahindra Thar vs Used Mahindra Thar

The Mahindra Thar has been sold in India since 2010, but it was its more recent generational update in 2020 that made it highly popular among car buyers in IndiIn fact, the second generation Thar has sold more than 2 lakh units since its launch, and that means the Thar is readily available in the used car market. So, if you have your heart set on buying the Thar, you should consider whether it is wiser to buy a new Thar, or a used one. The decision will be different based on your preferences, but there is also a significant difference in the amount of money you will spend when choosing between a new or a used Mahindra Thar.

Some of you might be wondering, is buying a used Mahindra Thar a good idea? To that effect, the used car market in India has evolved in the last decade. The arrival of bigger and verified used car dealers has meant that used cars are checked for quality issues and any issues that are found are promptly fixed before selling the car. Not just that, the Mahindra Thar is one of the more robustly built cars sold in India and as such even older units continue to offer great performance and durability. We have put together this comparison between a new and a used Mahindra Thar, specifically taking into account how much would it cost to buy them when taking a loan.

New Mahindra Thar Quick Overview

The Mahindra Thar doesn’t have traditional rivals in the Indian car market. The SUV offers one of a kind value with its off-road capabilities. There are other cars like the Maruti Suzuki Jimny and Force Gurkha that do offer similar off-road capabilities, however, they don’t offer the diverse powertrain options found on the Thar, are low on features and aren’t priced similarly as the Thar. The second generation Thar is available in 4WD and RWD configurations, after the latter was launched in 2023.

The 4WD variants of the Thar are available with a 2.0 litre turbocharged engine or a 2.2 litre diesel engine, both of which offer great performance. Both engines can be mated to either a 6 speed manual or 6 speed automatic transmission. The automatic transmission of the Thar offers a sublime driving experience with the shifts being incredibly smooth.

The RWD variants of the Thar are only available with a 1.5 litre diesel engine and it can only be paired with a 6 speed manual transmission in the lower AX (O) variant. However, buyers opting for the top spec LX variant can spec it with a 6 speed automatic transmission as well. While smaller than the other diesel engine, this engine is quite responsive and offers a good driving experience while also being more fuel efficient. 

Key Updates of New Mahindra Thar

The Mahindra Thar is currently in its second generation and this model was launched in 2020. Compared to the first generation model that had been on sale since 2010, the second generation Mahindra Thar was a big step up. Not only did it feature more powertrain options including automatic transmissions, but the engine performance was greatly improved. The second generation Thar also featured a more comfortable cabin, especially for rear passengers.

The design of the Thar has been one of the key reasons behind its immense popularity among Indian car owners. The boxy design, round headlamps, tall grille and high ground clearance all give it the appearance of a tough machine allowing it to command great road presence. Mahindra has kept the traditional outline of a jeep that makes it look so timeless, while at the same time, it has made use of elements like LED lighting to give it a modern touch.

Mahindra also made big inroads into the features department of the Thar. It got an updated instrument cluster, a touchscreen, better audio system, rear parking camera, off-road assists and even cruise control. The safety systems were also upgraded with ESP, Hill Hold Assist, Hill Descent Control and ISOFIX child seat mounting points are now part of the package. Not just that, the second generation Mahindra Thar was also tested by Global NCAP in 2020 and it achieved a 4 star rating for both adult and child occupant protection.

While the Thar previously featured a bare bones interior, the second generation model got major updates that not only made it better off-road, but also more comfortable to live with on road.

Used Mahindra Thar Quick Overview

The Mahindra Thar has been selling in India since 2010, but for the purposes of this comparison, we are referring to the second generation Thar that was launched in 2020.

The SUV was initially available in a convertible avatar with a soft roof for the rear passenger compartment. This variant has now been discontinued by Mahindra, and is exclusively available in the used car market. The convertible Thar is a great option for those buyers who are looking to customise the Thar to match their requirements.

The hard top variants of the used Thar are also readily available in the market with a diverse option of powertrain combos. The petrol Thar is perfectly suited for those who want to safeguard the purchase of a car against any future policy changes against diesel cars. Units of the petrol Thar with an automatic transmission are quite widely available in the used car market.

A RWD variant of the Thar was launched in 2023 and it is only available with a diesel engine. As it is a newer variant, it is not easily available in the used car market. You will have to keep an eye out for this particular model if you are keen on bringing home the RWD Thar.

New Mahindra Thar vs Used Mahindra Thar: Financing Comparison

There is no doubting the fact that a new Mahindra Thar and a used Mahindra Thar will offer a different ownership experience. A new car will allow you to gently break in the engine and gear box, and will allow you to care for the mechanical components of the car from day one. A used Mahindra Thar will not give you that luxury. However, as we mentioned earlier, the Thar is a highly robust SUV and even second hand units offer high levels of robustness, thus offering a trouble-free ownership experience.

The financial calculations for buying a new Mahindra Thar and a used one are quite different as well, especially for the top variant of the SUV. To give you a clearer picture, we have compared the top variant of the Thar, that is the LX variant with a diesel-automatic powertrain and 4WD. The table below looks at the overall difference in cost between the two and how much will it ultimately cost you to bring either a new or a used Thar home.

As you can see in the table above, there is a significant price difference between buying a new Thar and a used one. One of the major reasons for it is that the used Thar is a 2021 model, however, as the SUV has not received any major update in that time period, it compares well to a new top variant Thar in 2025. For calculating the registration taxes and other add-on costs of buying a new car, we have used the taxation structure applicable in Mumbai.

That said, it is important to know that when financing a car, new cars attract a lower rate of interest compared to used cars. For this comparison, we have kept the rates fixed at 10% for a new car and 12.9% for a used car, as these are the average rate of interest on car loans that prevail in the market today. They can however end up being different as well depending upon your credit rating. The loan tenure is fixed at 5 years of 60 months for both. Lastly, the down payment for both a new and a used Thar have been fixed at Rs. 4 lakh.

As you can see, the loan amount for a new Thar is more than double that of a used car. This is primarily because a 2021 Mahindra Thar has also depreciated quite a bit, and thus costs much less than a new Thar today. This also means you pay less in interest for a used Thar despite the higher rate of interest, all because the upfront cost of a used Thar is considerably lesser. Furthermore, as the used Thar has already been through its initial depreciation which is typically higher, a used Thar will depreciate less over the next 5 years compared to a new one.

Ultimately, when we take into account the EMIs over five years, you will end up paying more than Rs. 22 lakh to bring home a new Thar, whereas that cost is almost halved at under Rs. 12 lakh for a used one. This makes a used Thar a much better financial asset than a new one, as it will not only cost you less, but will also depreciate less over the same amount of time when compared to a new Thar.

New Mahindra Thar vs Used Mahindra Thar: Insurance Comparison

The insurance cost for a Mahindra Thar can be a major expense associated with the ownership experience of the SUV. When we get down to calculating the cost of insurance premium every year, the simple answer is that it is going to be different depending upon multiple factors like the insurance broker, the Insured Declared Value of the vehicle, and the type of insurance opted for such as comprehensive insurance or zero depreciation insurance. 

Furthermore, the insurance premium for a used Mahindra Thar will mostly be lower than a new one, quite simply because the value of a car as an asset is at its peak when it is new and then depreciates over time. In case of a used Thar, if the previous owner has made no claims on the insurance policy, you can catch a lucky break with a lower insurance premium due to the NCB (No Claim Bonus), which can be as high as 50% after five consecutive years of no claims. However, the lowest ownership cost is associated with a third party insurance and that is the same across all insurance brokers. 

As you can see from the table above, the third party insurance insurance cost for a new Mahindra Thar will be higher than a used Mahindra Thar. This happens because it is mandatory to have at least three years of third party insurance for any new car sold in IndiPost that, car owners can opt for yearly insurance renewals. However, the third party insurance premiums are based on engine capacity, and as the Mahindra Thar RWD has a lower capacity engine, it falls into a lower insurance bracket.

Cars with engine capacity lower than 1500cc fall under a lower price bracket, and thus the insurance cost for Thar RWD is lower than that for the 4WD models. This also makes the Mahindra Thar RWD a better option for casual owners, who aren’t necessarily looking for 4WD capabilities but want to own a Thar because of the allure of owning the SUV. Also, used Thar RWD owners will pay a lower insurance premium compared to new Thar (RWD) owners.

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

While most cars have their own advantage when picking between a new or a used option, in the case of the Mahindra Thar, that advantage is firmly on the side of a used Thar. That’s because the Thar hasn’t been updated much since the second generation model was launched and four year old units of the SUV are available for almost half the price today.

While car owners generally pay more interest for a used car due to a higher rate of interest, that is not the case for the Thar. The lower cost of a used Thar means a lower loan amount and ultimately, the interest you will pay over a five year period will be about Rs. 1.5 lakh lower compared to the interest you will pay when financing a new Thar. This is all based on the calculations done above, and the actual figures will vary depending upon many factors, however, it does signal that buying a used Mahindra Thar on loan will require a lower financial outlay compared to buying a new one.

FAQs about Mahindra Thar