Search Blogs

Finance Forum India

Share your thoughts on finance education, economic developments, capital markets movements or your professional experience in the field of finance.

Are you interested to blog on financial issues? If yes, please send us an email at: info@daulatguru.com

5 Benefits of Used Car That May Change Your Perspective

Given a choice, who wouldn’t opt for a brand new car over a pre-owned one? Buying a brand new car has its own thrill, but buying a pre-owned car has its own benefits too. Financial advantage aside, the new-age pre-owned cars market makes buying a used car even more worthy. The current pre-owned cars market is more organized, authorized, and pays heed to customer requirements. They ensure that all the cars in their showroom are serviced to perfection and are entitled to clear documentation. The dealers of used cars in India also provide service warranty to buyers either in terms of years or kilometers driven. Alongside the buyers also receive financial assistance from the dealers. Let’s have a closer look at the benefits of used cars that may change your perspective:

•    The affordable price of second-hand cars – It is a known fact that the price of used cars is much cheaper than brand new cars. This factor makes it a good deal for the buyer because he can get a popular or luxury model at a lower cost. For example, if you have wished to own a Toyota Fortuner, but couldn’t buy it because its price was out of your budget, then you can always opt to buy a second-hand one as the price of used Toyota Fortuner will be lesser as compared to a brand new one. Basically, it is a win situation for you to have bought a top-end car at a lower cost.

•    Low price depreciation rate of used car – The price depreciation rate of a used cars in India is lesser than that of new cars. Usually, the price depreciation happens every month and every kilometer drove, however, it is believed that cars lose their maximum value in the first year, which is close to around 40%. So, when you buy a second-hand car, you don’t have to face such huge depreciation.

•    Warranty – Just like for a new car, a used car comes with a warranty too, if you purchase from a company owned or an authorized dealer. The warranty is mostly counted based on a pre-decided time or kilometers driven.

•    Overhauled pre-owned cars market – Used cars do not anymore mean worn-out and dilapidated cars; rather they look almost new. The changing pattern of purchase among car buyers i.e. upgrading their car every few years has led to a huge influx of sparsely used cars in the pre-owned cars segment. This factor along with the specialized services provided by authorized dealers makes second-hand cars almost look and feel like new cars. In addition, these cars also go through standard quality tests and road tests before being displayed for sale.

•    Financial assistance – Whatever the depreciation be, the price of a car will still fall in the slab of lakhs. Hence, to ease the process of car buying, pre-owned car dealers, especially the ones that are certified, provide customers with financial assistance. This enables buyers to seek a loan from banks and lenders.

•    Availability of used car insurance – There are many banks and non-banking finance companies (NBFCs) that offer loans for used cars. The availability of used cars makes it further easy to own a car. A used car loan is similar to a car loan for a new car except for slight difference in the terms of age of the car, calculation of loan tenure, and rate of interest. However, it is a good option for car buyers to seek a loan for used cars.

 

There has been an evident growth of the pre-owned cars market and industry experts that this growth will only get doubled in the coming years. So, it is time to shed the myths about used cars and go ahead to make a smart investment that will fulfill the dream of owning a car. 

Used car loan trends in 2017
Buy or Stay on Rent? Check whether you are Financi...