Choosing between a new and a used air conditioner (AC) depends on your budget, cooling needs, and how long you plan to use the appliance. New ACs typically provide service for 10 to 15 years and come with perks like a 1-year comprehensive warranty and an extended warranty on the compressor; this saves exponential costs should the unit break down. Their energy efficiency also helps to save more on electricity bills. However, they can be an expensive one-time purchase for renters, young families, and people on a budget.
On the other hand, brands like Daikin and Mitsubishi are known for their reliability and long-lasting quality, making them reasonable options for second-hand ACs. While they carry repair risks and shorter lifespans, they can be a valuable bet for a limited budget. This AC buying guide examines the financial aspects of both options, including purchase costs and maintenance expenses, and breaks down how to purchase an AC on EMI. Keep reading to learn more.
New AC vs Used AC Buying Guide: Key Financial Factors in India for 2026
When deciding between a new or used air conditioner, certain cost factors come into play. Understanding these key factors helps you make a financially sound choice.
Upfront Price Differences
The most distinct difference is the immediate savings when purchasing a used AC; a new 1.5-ton split AC typically costs between ₹30,000 to ₹50,000, depending on the brand and star rating. A used AC of similar capacity costs anywhere from ₹8,000 to ₹20,000 (depending on age and condition).
The used option offers immediate savings of 50% to 70% on the purchase price, which can be attractive if your budget is tight.
Energy Efficiency
New air conditioners come with higher star ratings (4-star or 5-star), which consume less electricity. A 5-star rated AC can save up to ₹2,000 to ₹3,000 annually compared to older, less efficient models. On the other hand, pre-owned ACs are often 2-star or 3-star rated, leading to higher monthly electricity bills. These cumulative electricity expenses can cancel out the lower purchase price of a used AC over three to five years.
Warranty and Repair Costs
New ACs come with a manufacturer’s warranty, typically offering one year’s comprehensive warranty. They also offer warranty coverage for the compressor (5 to 10 years) and parts (1 to 2 years). This reduces unexpected repair expenses.
Used ACs do not come with any warranty, and older components may fail sooner, leading to repair costs ranging from ₹1,500 to ₹8,000 depending on the issue. Frequent repairs diminish the financial benefit of the lower purchase price.
New vs Used AC Lifespan
A new air conditioner lasts 10 to 15 years with proper maintenance. A used AC, depending on its age, may have only 3 to 5 years of serviceable life remaining. If you plan to live in your home long-term, a new AC spreads the cost over more years, making it more economical per year of use. Researching typical longevity becomes even more essential when purchasing a used AC, as some brands like Daikin, Mitsubishi and LG have better lifespans.
Also Read: Appliance Buying Guide in India: How to Choose Energy-Efficient Appliances During Year-End Sales
When Should You Consider Buying a Used AC?
A used air conditioner can be financially sensible in specific situations. Here’s when it makes sense for you to purchase a pre-owned AC:
- You’re a student or young professional renting a home for a short period (1 to 2 years)
- You need temporary cooling for a specific season, more so if only for those few months (e.g. if you’ve moved to a city for a few months)
- A trusted source, such as a friend or family member, is providing a well-maintained used AC
Always remember to check the AC’s age, service history, and cooling performance before buying.
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When is Buying a New AC a Better Investment?
A new AC is the better financial choice if:
- You plan to use it for several years, more so if you’ve just moved into your permanent residence
- You want lower total cost of ownership via warranty protection, lower electricity bills, and minimal repair
- You live in a region with high summer temperatures where the AC runs daily, helping you benefit from 5-star model energy savings
Also Read: Understanding Depreciation of Gadgets - When to Upgrade Using EMI
Buying AC on EMI in India 2026 with Poonawalla Fincorp
If you want to break down your AC’s initial cost into easy EMIs, a Consumer Durable Loan is a convenient option. Available at the point of purchase at Poonawalla Fincorp’s partner stores, the eligibility is typically easy and approval is quick.
How to Apply for a Consumer Durable Loan
- Head to one of the many Poonawalla Fincorp partnered retail stores, and pick out your AC of choice
- At the point of sale, inform the representative that you’d like to opt for Poonawalla Fincorp’s Consumer Durable Loan
- Check to ensure you meet the eligibility requirements
- Apply for the loan, submitting basic KYC documents and required income proof
- Once the loan is approved, the amount is transferred directly to the seller, and you can take home your AC immediately
Also Read: Top Earbuds on EMI in India 2026: Apple, Samsung, Sony, OnePlus, JBL
To Conclude
The decision between a new and used AC hinges on your timeline, budget flexibility, and energy consumption patterns. A used AC works well for short-term or low-usage scenarios, while a new AC offers better value over time through energy savings and reliability. If the upfront cost of your AC is a concern, you can finance the purchase with the PFIN EMI card and pay in EMIs. You can also opt for a Instant Personal Loan from Poonawalla Fincorp with flexible repayment options to fund your purchase without hassle.
FAQs
Is it safe to buy a second-hand AC?
Buying a second-hand AC can be safe if you purchase from a reliable source and inspect the unit thoroughly. Check for refrigerant leaks, compressor health, and cooling efficiency, and don’t hesitate to request service records if available.
Are new AC units more efficient than old ones?
Yes, new ACs are typically more energy efficient than pre-owned ones. This is because they typically feature higher BEE ratings, and are equipped with better technology that enables less energy consumption.
Can I get financing for purchasing a new air conditioner?
Yes, many lenders offer consumer durable loans or instant personal loans for purchasing home appliances like air conditioners. These loans allow you to purchase your AC on EMI, making high-efficiency models more accessible without depleting your savings.
What is the average lifespan of a used AC?
The remaining lifespan of a used AC depends on its age and maintenance history. An AC that is 5 to 7 years old may last another 3 to 5 years, while older units may require replacement sooner due to component wear and reduced efficiency.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply