Cost-effectiveness and new car purchases are two usually indirectly proportional, and it’s tough to strike a balance between the two. However, that doesn’t mean you will have to give up on the idea of buying your dream car. Investing in a second-hand model or used option will be a smart decision as affordability and quality will come together!
Uncovering the reality
Getting addicted to that intoxicating thought of a new car will continue to enthrall you until your mean machine loses its charm/value and starts delivering poor performances. If market stats are anything to go by, new cars lose weightage and depreciate by at least 30%. Selling it won’t fetch you impressive returns too. Hence it will be worth every rupee considering a pre-owned car.
Many Indians are warming up to a pre-owned car. Hence it won’t be a surprise to know that the used car market will soar to 7 million units by 2020. Even the socio-economic divide in metros and non-metros blur with a share of 45% and 55% respectively.
We have compiled a list of reasons why used cars can be a total ‘value for money’ decision.
1. Avoiding the brunt of depreciation
Cars lose value the moment they are on the road. Car usage statistics state that a majority of vehicles depreciate about 20% when they are on the road for the first time. Another 10% value depreciation occurs in the first year.
Used cars are the best alternatives in such situations. A well-maintained, well-operated, and well-driven used car can serve you for years to come. Some of them will also offer you that classic new-car-feel at lesser bucks. Try to go for cars that have 1st owner and have been pre-inspected by a reliable agency.
2. Reduced fees for registration
States have predetermined laws for vehicle registration. Most of the countries determine the registration fees according to the car price and transactions. Buying a used model will reduce these fees and let you pay less for registrations. You get direct price benefits in this context.
3. Flexible buying options
You might be having that BMW model in your mind for quite some time now. Or that classic Honda series keep coming back to your dreams. Even if you don’t have the budget for it now, you can get it after 2-3 years. Used cars give you the opportunity to invest in luxury models and that too within your budgetary limits. That’s a huge advantage for car lovers and enthusiasts.
4. Certification programs
While selling used cars, most of the leading dealerships organize certification programs where car inspection, performance monitoring, and repairs are performed. Once a car gets certified, manufacturers offer warranty to buyers. You know you are buying a fully functional car without any severe glitches and damage.
These factors will clearly define why investing in used cars is a profitable option. We think that it’s a great idea that will get you the biggest bang for your buck.