Buying a car is a major life decision as it is one of the most expensive purchases you may make during your lifetime. There are plenty of choices available in the market once you have decided to buy a car. Apart from brands and vehicle types, most individuals also face ambiguity in choosing between a new car and a used car. Both options have their own advantages and limitations. There are early adopters who prefer new cars with the latest features. However, a vast majority of the Indian market prefers fuel efficiency at an affordable price. If you are one such individual, you may consider buying a used car over a new one.
In India, the used car market is just as big as the new car market. It is quite easy to find different types of vehicles in the used car market. Also, there are plenty of ways in which you can buy used cars. There are plenty of benefits associated with buying a used car over a new car. Here is a list of reasons as to why you must consider buying a used car.
1. Used vehicles come with a low price tag.
The most obvious benefit of buying a used car is the cost benefit associated with it. Used cars cost significantly lower than new cars, and they provide, more or less, the same features and benefits. If you don’t have a high budget for your car, you must consider opting for a used one. You may also customise the vehicle according to your preference without affecting its value too much. If you buy a well-maintained car, you don’t have to spend too much on service and repairs in the near future.
2. You don’t have to pay for bulk depreciation.
This is an important advantage of buying a used car. A new car loses 15% of its value immediately after it hits the road from the showroom. Every additional year, it loses 10% of its value. The costs associated with this bulk depreciation are borne by the vehicle’s first owner. When you buy a pre-owned car, you don’t have to pay for these depreciation charges. Your car will continue to depreciate even after you buy it second hand. However, the cost of this depreciation is not as much as the initial bulk depreciation experienced in the first few years.
3. Your insurance costs will be low.
Insurance companies determine the sum assured amount of a car based on its insured declared value (IDV). This IDV is nothing but the current market price of the vehicle. In case of theft or accidents, this value is taken into consideration for providing compensation. The IDV for used cars is typically much lower than that of new cars. Due to this, the insurance premium is likely to be lower for used cars as compared to new cars. Since the value of the vehicle is declining, you may not need various add-on covers like engine protector cover, collision cover, etc. Hence, the overall cost of insurance is significantly low when you buy used cars.
4. It is easy to get high-quality used cars.
Quality is one of the major concerns of people who think about buying used cars. People often worry that they may have to spend too much on maintenance if they got stuck with a poorly maintained car. This is no longer a concern as there are plenty of authority dealers who sell certified pre-owned cars. These used cars are thoroughly inspected by these manufacturers and certified. They even come with a warranty for an extended period. These certified cars are highly reliable, and they come with an affordable price tag.
5. There are plenty of choices for used cars.
There are plenty of choices available when you decide to buy used cars. The used car market is quite big in India, and it is possible to find any kind of vehicle you wish. There are also different kinds of market places where you can find used cars. Owners list their used vehicles in various automobile portals and online classifieds. There are also dealers who specialise in selling used cars. Top brands have certified pre-owned vehicles of their own brands, and these vehicles come with more reliability. Considering the range of choices available, it is quite easy to find used cars at affordable prices.
6. Used cars are ideal for entry-level drivers.
Most entry-level drivers in India prefer buying used cars as these vehicles don’t lose much value in the case of unexpected scratches and minor damages. For instance, if your new car gets scratches or dents due to your poor driving, the value of the car may plummet much lower than its depreciation value. Hence, it is always better to practice with used cars and improve your driving skills. You may use an affordably priced used car to become a better driver. When you sell this vehicle again to get a new car, you may not lose much value.
Limitations of buying a used car
Though there are plenty of advantages in buying a used car, you must not ignore the following limitations of buying a used car:
- If you are not careful, you might end up with a poor-quality vehicle and lose a lot of money on maintenance and services.
- There will not be any official warranty from the manufacturer if something goes wrong.
- If the car is too old, you might find it difficult to get replacement parts.
Buying a used car comes with its own set of pros and cons. However, if you buy a well-maintained used car, the pros could significantly outweigh the cons. The advantages listed above are the most important benefits you could experience from a used car. If you are on a budget, a used car could be of great benefit compared to a new one. Make sure that you do your research about the various models in the market while searching for used cars. If you don’t have much expertise in cars, get the help of a professional to get the best bargain you can find.