Time to buy a second hand car

The Best Time to Buy
An Used Car

January 26, 2024 • 1102 views

Car prices are rising each year as the automobile industry evolves rapidly. But, despite higher prices, a considerable number of newer car models are entering the used market, offering good deals for buyers without draining their wallets. 
So, are you considering getting a used car?
In this blog, we discuss the best times to buy a used car and how these moments can make your purchase even more worthwhile. 

When is the Best Time to Buy Used Cars?

The following highlights the best times to buy a used car:

  • Year- Ending or Quarter-Ending

One of the best times to buy a used car is during the quarter or year-end, when many businesses, including car dealerships, see a surge in sales. Specifically, the final weeks of March, June, September, and December are the spotlight. Showrooms and dealers aim to meet sales targets swiftly during these periods. 
The focused efforts of sales teams to reach their targets create an opportunity for you to secure additional discounts on used car purchases. Waiting for a quarter or year-end can be a strategic move, allowing you to negotiate a better deal and snag the desired car at a more favourable price. 

  • Festival Time

Another strategic time to consider purchasing a used car is during the festival season. Similar to various products, used car dealerships often roll out special sales during this period. You can expect not only additional discounts but also enticing offers such as extended warranties, upgrades, and free accessories. 
Moreover, NBFCs, and other financial institutions offers special rates on car loans during this time, making it easier for you to finance your purchases. 

  • Launch of Newer Models

If you are someone who waits for new smartphone models to drop in price, here is a tip: the same strategy works for cars too! When new car models launch folks often trade in their older ones for the latest model. This flood of trade-ins means dealers are more open to offering pre-owned vehicles at lower prices. 
So, if you are looking at a specific car, waiting for new model launches can be your ticket to getting a used car at a better deal. 

  • When You Are Financially Ready 

One of the best time to buy a used car is when you find yourself financially prepared. Although used cars typically come with a more budget-friendly price tag than their new counterparts, they still require a significant investment. Proper planning is essential, particularly if you are contemplating financing. 
To guarantee your financial readiness, leverage a loan calculator to grasp the associated costs of your purchase. Keep in mind that interest rates on used car loan may be higher when compared to those for new vehicles. 

ALSO READ :- How To Inspect and Buy A Used Car?

Why You Should Buy a Used Car? 

The following points highlight why you should consider buying a used car: 

  • To Save Money

Purchasing a brand-new car from the showroom can cost you a lot. However, the same car model, just few months to a year old and out of the showroom, will cost you a few lakh less. This means your hard-earned money goes much further when you choose a used car. 

  • To Get a Lower Depreciation Value

When you drive a new car out of the showroom, its value depreciates. In the first year, most cars experience a depreciation value of around 20%. However, this depreciation slows down over time. If you opt for a lower-cost used car, you won’t feel the impact of the resale value, as the original owner has already absorbed the depreciation amount. 

  • To Get a Better Car

With a lower budget, you can afford a high-end car model that you might normally consider. This means that you can enjoy car models with enhanced looks, features, and comfort at a reduced cost. 

  • To Avail of Easier Loans

Many NBFCs are car manufacturers now offer loans for used cars at reasonable rates. For example, Poonawalla Fincorp offers Used Car Loan to both working professionals and self-employed individuals at a low interest rate. It implies you would not be burdened with a substantial debt just because you’ve decided to purchase a car. 

How to Apply for a Used Car Loan? 

You can apply for a used car loan by following the steps below:

Step 1: Compare Interest Rates
Start by comparing interest rates from different lenders. You can check the rates online or visit the lender’s website or branch office. Thoroughly research before applying to secure a better interest rate. Choosing the right lender is crucial to avoid unexpected costs. 

Step 2: Finalise the Loan Details
Once you have shortlisted a lender, understand the loan details, including the loan amount, repayment tenure, interest rate, processing fees, and monthly EMIs. Furthermore, inquire about prepayment charges if you plan to repay the loan early. Clear understanding ensures you choose a car within your budget. 

Step 3: Check Loan Amount and Down Payment
Pre-owned car loans typically offer 70-90% of the car’s evaluated price. Using their process or the Insured Declared Value (IDV), lenders may assess the car’s value. You must consider making a higher down payment to ease the repayment burden, leading to lower interest and monthly instalments. 

Step 4: Apply and Submit Documents
The application process is usually straightforward and can be done online. You must provide the necessary documents, including photo ID with age proof, signed application form, residence proof, and income proof (salary slips, ITR, bank statements for employed individuals; balance sheet, profit & loss account, ITR for self-employed individuals).

Step 5: Take Possession of Your Car
After loan approval, the lender transfers funds to the seller. Simultaneously, pay the remaining down payment to the seller to take possession of the used car. Note that ownership remains with the lender until the borrower fully repays the amount, though it does not restrict the borrower's car usage. 

To Conclude

Turning your dream car into a reality is not as complicated as it may seem. Knowing the best times to buy a used car and making intelligent decisions during these periods can make all the difference. Moreover, when it comes to financing, consider exploring the borrower-friendly Pre-Owned Car Loan offered by Poonawalla Fincorp to make your dream car a hassle-free reality.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Pre-Owned Car Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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