Is this car suitable for you?

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Car sales in India have been zooming in the previous year. And there is a growing demand for cars. But not everybody can afford to buy a car. So, to fulfil their desire, people go in for used cars. If you are also struggling with things like these then this report is for you.

The biggest advantage of buying a second-hand car is that it is cheaper. If you are a person with a low income, then investing your life savings in a new car is not the right decision. You can get a good deal with a second-hand car. Let look at an example. If you want to buy a new Maruti Swift, its ex-showroom price is around Rs 6 lakh. However, in the second-hand market, you can get the same car at half the price. With negotiation, you can get an even better bargain.

Lower price

You can find used cars that look as good as new from the outside. This way, you can save money and you won’t have to compromise on the exterior of the car. Moreover, you can get the car serviced and make it look as good as new.

New car owners also have to pay road tax, registration fees and RTO fees. While used car buyers don’t have to pay all these charges.

Rapid depreciation

Value of a new car depreciates very quickly. A car may depreciate almsot 25-30% in just one year. However after few years, depreciation is gradual. Hence it means that used car won’t depreciate very much.

When purchasing a car, the cost of insurance is an essential factor that should be considered. In most cases, insurance premiums for new cars are higher compared to old cars. This is because the market price of new cars is higher. On an average, you won’t have to pay higher insurance premium for used cars.

You always have the option of purchasing a certified used car. This means that the second-hand car you purchase has already undergone inspection. Certified pre-owned cars or CPOs come with several benefits, such as the option to return the car, a manufacturer’s warranty, and roadside assistance etc.

Warranty

Another benefit is related to the warranty. There is complete transparency in the market regarding second-hand cars. You can know the service history of the car you want to purchase. The dealership from which you purchase the car can provide you with full or partial warranty coverage. The warranty can include engine damage in most cases. Additionally, if the dealership cannot fix your car, they may replace it. You can get up to three years of warranty coverage on second-hand cars.

Now the question arises as to whether purchasing a second-hand car is right in every aspect. This is not the case. There are some issues, such as mileage. The average mileage of second-hand cars is always lower than that of new cars. The maintenance cost may also be higher for used cars.

So you need to consider all the factors before deciding to buy second hand car.