When to buy an Used car

When it is better to buy an used car?

June 29, 2022 • 231 views

Purchasing a car in India may be a basic necessity for some and a status symbol for others, but it is a dream come true for the vast majority. It is a huge financial decision that demands significant funds and planning. People began to realize that used cars can be just as excellent as new cars in recent years, and the concept of buying pre-owned cars began to gain traction. But many of us remain unconvinced of the concept because it necessitates substantial research and some risks. The issue of reliability continues to plague used car buyers, as it is very difficult to buy a pre-owned can fulfil all our pre-conditions. To avoid this, one should look for online used car dealers. Unlike offline ones, whose main goal is to sell a car for a profit. There are many pre-owned car dealers online who go to considerable lengths to thoroughly inspect the vehicle before putting it up for sale. They also provide warranties and guarantees if the car has any problems after it has been purchased. 

With easy access to online Used Car Loans, second-hand cars have become even more accessible to a large section of the populace. Given that owning a pre-owned car is as simple as clicking buy on a website, it’s better to have a good idea of why and when you should go for a pre-owned car.

Why should you buy a Pre-Owned Car?

The question that every pre-owned car buyer has and the answer to this question can be found in several areas. Let us dissect them for you.

  • Affordability

Pre-owned cars are less expensive since they have undergone considerable depreciation and wear and tear, lowering their value significantly. Now the question that naturally arises is – should you raise some additional funds and buy a brand-new car or purchase a used car at a discounted price? Those concerns can be alleviated by purchasing certified pre-owned cars from reputable dealers. The ex-showroom price of the car is the base price at which your car can be purchased, but there are a few other costs to consider, the most significant of which is the sales tax. The tax raises the car's worth considerably, giving the buyer nightmares for days. However, if you buy a car that has previously been used by someone else, you will not be liable for this tax, allowing you to save some money. To make the purchasing process even easier, you can apply online for used Car Loan from Poonawalla Fincorp, which can assist you by financing the purchase of a used car of your choice.

  • Lower Depreciation Rate

The most evident reason why used cars are less expensive is the depreciation rate. Let's start by defining depreciation in a nutshell. The loss of value of one's assets, in this case, a car, is known as the depreciation rate. It is determined by many factors, but the biggest one that reduces a car's worth is wear and tear, or mileage. The more a car has been driven in terms of distance, the higher the rate of depreciation. In the case of a new car, this corresponds to a 15-30% drop in value after only a year. Pre-owned cars, on the other hand, have already gone through the heavy depreciation phase, so you won't lose much money when you try to sell them.

  • Lower Insurance Premiums

Insurance premiums are directly proportionate to the age of the car; therefore, a newer car will have a higher premium than an old car. When a car is new, its value is higher, thus the insurance premium is higher, but as it ages, its value decreases due to a variety of factors, so the insurance premium decreases. Further, online pre-owned car loans, partially or fully, cannot be utilized towards insurance payments. Keep that in mind while planning for your used car purchase. 

  • Certified Pre-owned Cars

Certified dealers go the extra mile to ensure that the used car matches the looks, durability, and mechanical standards of a new car, ensuring complete client satisfaction. It makes pre-owned cars feel and look less “used” because certified used car dealers are very open about their business, and they only sell cars that pass their quality checks. From the service history to the physical condition, a certified pre-owned car will have all the information. On the other hand, these may be more expensive than non-certified cars with no information about their past usage and service history. However, the warranty and guarantee that come with certified cars will give you peace of mind, which is a lot more important in the long run. You can consider these costs while applying for online Pre-Owned Car Loans.  

  • Driving Experience Level

When you have just started learning or driving at an amateur level, buying a used car is always a good option. It saves you a lot of money and eliminates the fear of hefty initial expenditure. You can get a better price on a used vehicle, and any additional costs can be avoided. A new beginner-level driver should consider purchasing a used car that has been well-maintained and has undergone regular maintenance inspections.

  • Cost-effective Luxury

A car can speak volumes about your lifestyle, choices, and overall personality. As a result, it's important to select a car that meets your daily demands while also reflecting your persona. At the end of the day, many people dream about having a Mercedes-Benz, BMW, Audi, or Jaguar parked in their garage. The main advantage of purchasing a used luxury car over a new economy car is that you get more for less money. With the same budget, you can get a luxury car. Anyone who has driven a Mercedes E Class knows that it is a far different experience than driving most other economy brands. This is possibly the most compelling reason to purchase a used luxury car.

Final Thoughts

Both new and used cars have their own set of benefits and drawbacks. Used cars have come a long way from their traditional image of being shabby and are now a solid investment for buyers searching for a better car for their money as it is a risk-free choice. One can easily apply online for a Pre-Owned Car Loan provided by Poonawalla Fincorp to avail of several convenience-first features that will make this purchase more convenient and cost-effective for you.

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