Top 5 Factors Affecting on Price Of A Second-Hand Car

Are you planning to buy a second-hand car? But, confused about which one to buy. Buying a car can be an overwhelming experience, especially with the various second-hand car prices available in the market. Second-hand car price is one of the significant factors influencing the finalisation of a second-hand car. Alongside, there are various other factors that affect the price of a second-hand car. Let us discuss these factors in detail.

Factors Affecting the Price of Second-hand Car

• Age 

The age of the car is one of the major factors that directly influence a buyer's decision. A new car loses its value over a period of time, irrespective of the brand or car model. However, there are some classic car models and vintage car models that gain value with time. The factor that reduces the car's value due to its normal wear and tear use is termed depreciation. 
The depreciation factors depend on the car model, type of car, and other factors. Hence, if you are looking for a second-hand car, always check for the age of the car – the higher the car's age, the higher the depreciation and the lower the car value. On the other hand, a car will have a higher value, if the car's age is less.  

• Kilometres Driven

The distance travelled signifies the kilometres driven by the previous car owner. The odometer of the car indicates the number of kilometres a car is driven. The higher the distance, the lower the car's value. However, with respect to classic cars or vintage cars, the price of second-hand cars increases with the distance travelled. Also, a highly driven car means it has been used more, which decreases its value.

• Insurance  

When you are looking for a second-hand car, you must always check whether the car is insured. An insured car will have a higher second-hand car price as compared to an uninsured second-hand car. It would be best to always ask the seller about the insurance status, coverage, policy date, etc. These things will help you get a better car value than a second-hand car. Even if the car is insured, ensure to check the date of expiration of the insurance policy. 

• Maintenance and Current Condition

A car requires to be regularly serviced and taken care of. A well-maintained used car will always be priced higher than a less-maintained used car. On regular car service and maintenance, you must check its engine oil, oil filter, electronics, switches, gearbox, gear oil, air filter, etc. This ensures the longevity of the car without worrying about any sudden damage or repair. 

• Ownership 

 Ownership frequency is also considered one of the key factors while negotiating a second-hand car price. For example, a used car with one owner will have a higher second-hand car price, while a used car with more than one owner will have a lower second-hand car price.

ALSO READ :- How To Get Loan To Buy An Old Car?

Why Prefer Used Car over New Car?

Below are a few reasons why you should prefer a used car over a new car: 

• Affordable 

A used car is comparatively affordable as compared to a new car. You can get the same car model at a cheaper rate without any long waiting period. Generally, when buying a new car, there is a lot of waiting period, which can be frustrating. Going for a used car can be affordable without impacting your current savings. You can get your used car within few days. 

• Depreciation 

A new car depreciates much faster than an older or used car. Also, the depreciation of the car depends on various factors such as brand, condition of the car, and performance. These factors highly influence the depreciation rate of the car. 

• Registration fees and other charges

There are various one-time charges that a new owner of a car has to incur, such as one-time registration fees, other RTO charges, road taxes, etc. All these charges add up to the on-road price of a new car. On the contrary, if you are planning to buy a used car, you can avoid paying all these fees and charges. 

How to get an old car loan to purchase old car?

You can apply for an old car loan by following the below steps:

• Step 1: Visit the official website and check for a used car loan.
• Step 2: Fill out the required forms.
• Step 3: Submit all the documents and wait for the approval.
• Step 4: Once approved, your loan amount will directly be disbursed into your bank account.

Please note that the above-mentioned steps will vary from lender to lender. You must check the website or contact the representative to get more clarity.

Conclusion

To conclude, a used car is a better option as compared to a new car. If you are planning to buy a used car, you must opt for a second hand car loan with a better second-hand car price. There are various lenders that offer a used car loan with exciting features such as a higher loan amount, flexible repayment tenure, attractive interest rates, etc. To enjoy these benefits, you can avail loan from Poonawalla Fincorp with a few clicks.

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