You are considering purchasing a car for yourself or for your family? Rather than buying a new one, how about purchasing a second-hand car instead?
Cars are becoming necessity and a means of transportation rather than a luxury item to show off for most Indian people. It is the most convenient and comfortable option to travel on a daily basis for many. If you plan to purchase a car in the near future, have you ever had the thought of buying a used car? Before saying “No, never!” and pushing that idea away to the back of your mind, read the following 3 reasons why a used car is much better than a brand new one in some cases.
1. Less depreciation
First thing first, let’s talk about the biggest advantage of owning a used car (apart from the obvious advantage of a much lower price tag): depreciation. Purchasing a used car means that you let someone else took the biggest depreciation hit on the car before you have the chance to make some impact on it. A new car usually has a 20% depreciation the moment it leaves the showroom and hits the road, which implies that even a car that has been used for one year can be 20 - 30% cheaper than a brand new one. If you buy a car that has been driven for a few years, you can sell it for almost the same price as when you paid for it, because the depreciation rate gradually decreases in the following years.
A used car does not depreciate as fast as a new car
2. Lower insurance rate
Buying a used car does not only save you some money because of the low price and low depreciation rate but also keeps some cash in your pocket thanks to the lower insurance rate. Insurance for cars can take a toll on your finance, but rates that are applied to used cars are usually less than those to new cars because of their values. Value of a car is the primary thing that insurance companies would consider when they calculate the insurance rate, so the more value a car has, the higher the insurance rate is. If you are a young person trying to save up for your first car, or someone who has to cater for your family and are in serious need of a car, but you do not want to spend too much, using a used car can be a significant saving. You may not recognize the difference between a new car and a used car, but insurance company sure does.
Insurance rate for a used car is much better for your wallet than that for a new car
3. Much more variety
New cars are often available in a few makes and models that are the latest of the lineups. However, if you look up used cars, you can find almost any model of any make of any year of your choice and then decide on one that is the most suitable for you. A more diverse array of options is great because you do not necessarily have to follow the new trends which may not be what you need, but rather you can select a car that has features and performance that you prefer. For example, many new cars on the market now offer touchscreen that has Apple CarPlay integrated, and you are someone who only needs a car to go from point A to point B and does not focus on entertainment on the road, then you may have to spend some extra money on something you are not likely to appreciate and use.
Used cars are available in almost any makes, models, and years that you can think of