You may have fantasized about your impending long drives seeing the ads for new cars. However, before rushing to get a new car, you may want to contemplate the benefits of having a second-hand car, especially during a financially unstable situation.
Imagine you can get a second-hand luxury car and complete two international trips to your favorite destinations with the price you can get a new one. Plus, if you are tight on budget, you can opt for second-hand car finance. It enables you to manage your finances without redeeming your savings.
Furthermore, you can get the best-used car loan interest rate depending on factors like your age, income, credit score, etc. The best part about it is that you can use an online used car loan EMI calculator to determine how much you can afford to pay as EMIs.
Here are the top 10 benefits of buying a used car
Depreciate and low market price
It would not be a wise investment strategy to get a brand new car as most cars lose their value quite early in their lifespan. For instance, if you get a new car, it will likely lose up to 50% of its value within just three years after purchase. Getting a used car will come with a lower price tag, and it will not depreciate with the same intensity as new cars.
Another benefit of getting a used car is that you can significantly save money and put it to use for other priorities. Let’s suppose that a new car would cost you Rs. 10 lakhs. You can get its used version for almost Rs. 6 lakhs. Also, you can opt for used car loan and avail of the best-used car interest rate.
A large pool of options
If you have a particular budget to get a new car, you will hardly have a handful of options available for yourself. Whereas, if you intend to buy a used car, you will have a pool of options. You can get the best performance, speed, and engine from the amount you were intending to buy a low-quality new car.
Low insurance cost
The cost of insurance is determined by the value of your car. The more valuable a vehicle is, the more money you will have to pay for insurance. However, When you buy a second-hand car on finance, the cost of insurance will drop substantially.
Low registration fees
Although it depends on the state you are currently living in, second-hand cars are cheaper to register. The registration fees are structured based on your car’s age, and getting a used car may lower your registration fees. The yearly tax on your vehicle is also based on the age of the vehicle.
The right choice for novices
If you are getting a car for the first time, then you will likely expose your precious set of wheels to scratches and dents. You will likely put a certain level of abuse that will lead to wear and tear of brakes and clutch. A used car can get you to polish your driving skills and then upgrade to a newer version.
Another benefit of getting a used car is that you will get a warranty on the repair provided you buy it from a brand-authorized dealership. You will find used cars that are still under warranty and that give you dual benefits. You can get it repaired easily within the warranty duration and then get an additional benefit.
Lower sales tax
Brand new cars are subject to higher sales tax. The higher your vehicle’s price tag, the higher the tax will be. When you buy a new car that costs more than Rs. 10 lakhs, that can add up. There are several benefits of a second-hand car, and a lower sales tax is one of them.
These days, modern luxury cars last longer. For instance, the average lifespan of vehicles in India can range between 10 to 20 years. If you can get a used car whose value has depreciated in just two years, you can use that for almost more than a decade.
Obtaining vehicle history reports
You can instantly and easily obtain a vehicle history report by using your seller’s online tool. It enables you to learn about the car’s history, mileage validation, accidents, etc.
The fast depreciation of new cars is reason enough to purchase a used car. If you do not have the finances to get a used car, you can apply for second-hand car finance and avail of the best-used car interest rate. However, ensure to use a used car loan EMI calculator to determine your affordability.