Introduction
The Indian car market is booming with new cars from local and international manufacturers. When buying a new car, you may have to pay close attention to various factors that suit your needs, such as the model, features and specifications, mileage, colour etc. One of the most critical aspects of buying a car is its affordability. Not every car model is affordable by consumers, and this is where the option of purchasing used vehicles benefits everyone. Buying a used car makes sense for those buying their first car or looking to buy a model that is within their budget. Here are the top reasons you should buy a used car.
Benefits of Buying a Second-Hand Car
There are numerous benefits to buying a used car. A thorough understanding of such elements can support you in making more efficient decisions before purchasing one.
1. Economical
Purchasing a used car could be far more economical than buying a new one. You may be willing to buy a premium model with far more exquisite features, or you may be interested in buying a bigger brand. However, such purchases may not suit your pocket, and you might have to settle for a lower model. Since a second-hand car comes at a lower price, such dreams become more affordable.
2. Lower Loan Amount
Since second-hand cars cost less, getting a second-hand car loan to fund your purchase also becomes inexpensive. Your principal amount reduces, and so do your monthly EMIs making your investment more pocket-friendly. However, you must check used car loan eligibility before applying for such a loan.
3. Rate of Depreciation
A car is estimated to lose approximately 50% of its value in the first few years. Moreover, luxury cars are regarded to experience a steeper depreciation rate. Buying a used car overcomes this disadvantage since such vehicles have already lost most of their value. Although the value of a used car will also depreciate, the rate of decline would not be so steep. As a result, the rate of decline in your car’s value would not be so abrupt.
4. Waiting Period
You generally have to sit through substantial waiting periods while looking to buy popular models. Used cars are readily available in inventory and can be purchased immediately.
5. Additional charges
While purchasing a new vehicle, you must make additional payments in the form of registration charges, RTO charges, road taxes and fees to the government. You can avoid such charges while buying a used car since the previous owner would have covered all these additional costs. Moreover, the registration charges vary depending on the vehicle’s on-road price. A used car comes with a cheaper price tag and therefore includes a lower registration fee. As a result, the overall cost of a used car decreases further, making the purchase more pocket-friendly.
Must Read: Want a Used Car Loan? Here’s What You Should Know
6. Insurance Charges
Insurance premiums charged on vehicles are directly proportional to their market price. As a result, purchasing a new car demands higher insurance costs. However, a used car has already significantly declined its value. As a result, the insurance charges levied on used vehicles are less expensive, lowering your net purchase price and making it more affordable.
7. Add-on Installations
Buying a used car can get you numerous add-on installations free of cost. Previous owners often would have purchased add-ons for the vehicle, such as alloy wheels, bumper guards, spoilers, windscreens etc. You do not have to shell out additional funds to purchase such additional features making your purchase even more affordable.
8. After-sales support service
Car dealers usually provide more extensive warranty periods than the standard factory warranty. Many brands have also started providing exclusively used car transitions handling additional warranty services offered by the brand.
Conclusion
Purchasing a used car gives you far more benefits than buying a new one. The most crucial advantage of buying a used car is that you get the flexibility to purchase a superior model well within your budget and an easy way to calculate your used car loan calculator. Purchasing a new car is far more economical than buying a new one and comes with added benefits pre-installed by the previous owner. Moreover, applying for a loan for a used car becomes more affordable since the principal amount would be far less. It makes buying a second-hand car wiser than opting for a new one.
