Purchasing a car is always a matter of pride and an indication of your social status in the society. However, this is usually the case when we end up investing into a brand new car. Purchasing a used car is still not seen as an acceptable norm in India, but we beg to differ.
Buying a used car has its own set of benefits.
With the used car industry fast becoming organized, purchasing a pre-owned car is now a hassle free experience in most cases. So if you are in the market for purchasing a car, you might want to have a look at used options for these valid obvious reasons
Buying A Used Car Saves Money
It is no rocket science that a used car is cheaper to purchase. But more than this, a well-kept used car is better value for money than a new one. For example, if a brand-new sedan costs Rs 8 lakh (on-road), you can buy a well-kept, less used and few months old models of the same car for about 6-7 lakh, thus getting more value for your money. This is true for any given car in India.
Depreciation Is Taken Care Of
This is a fact that most buyers aren’t aware of. Every car has a depreciation value attached it to. You drive out of a new car showroom and the car’s value goes down from day number one! Most cars see a depreciation of 25-30% in the first year and another 10-15% in the second year. This means if you sell a 8 lakh rupee car after 3 years, be ready to bear a loss of 4 lakh.
On the other hand, if you purchase a similar car from the used car market and sell it off after 3 years, you will be losing about half the money only. This is because when you buy a used car, the first owner has already absorbed the depreciation amount. Sounds nice?
Peace Of Mind
One of the biggest apprehensions in the mind of used car buyers has been about the car’s questionable reliability. However, modern day engineering has made cars very reliable. Further, the warranty periods have increased and most owners end up purchasing ‘extended warranty’ in the first place. This means if you are buying a used car which is 3-5 years old, you don’t have to worry about its reliability.
It has also become easier for a car owner to get the service history from any authorized workshop and show the same to the buyer. On the top of this, Car Castle provides 3-month Warranty on its inventory. Isn’t that interesting.
You Can Upgrade In Life
This point is in continuation to the first one. Lets take a perfect example of a middle class family person who wants a bigger car for his expanding family. In a budget of Rs 5 lakh for new cars, he can probably look at the Hyundai Grand i10 or Tata Tigor. On the other side, in the same amount of money, he can happily purchase used models of the Maruti Dzire, the Hyundai Verna or even the old Honda City. These cars are definitely segments above cars like the Grand i10 or the Tigor. Bigger cars offer more comfort, better features, increased safety and of course a higher social status.
As you have read, buying a used car is now a beneficial decision. You get more bang for buck, can upgrade to a bigger car and have easy finance schemes along with peace of mind.
Infact, investing into a pre-owned car also means you can change cars every few years without losing a high amount of money on it!