Looking to buy a car? Well, it is, in fact, one of the many important decisions in one’s life. A car might be the most significant and expensive purchases you will make. So, weighing in your options is a must. When considering buying a car, one automatically pictures a brand new and shiny vehicle right out of the showroom. But why not also explore the possibility of a pre-owned car. Especially in the current automotive market with frequent model upgrades and easy financing, pre-owned cars are much more than a car with rusted rims and chipped paint. “Pre-worshipped” would be a better term to describe today’s “pre-owned” cars. Here are some of the key reasons why buying a per-worshipped car is not a bad idea:
1. The Obvious- It Saves You Money
Purchasing a pre-owned vehicle will definitely save you some good money. On average a used car is almost 50% cheaper than a new one. If an average consumer switch cars within six years of purchase, investing five lakhs in place often might be a good idea. That means you could opt into a more beautiful car for your next buy by investing another five lacks thus creating your very own “two for the price of one” deal. Now that sounds tempting, doesn’t it?
2. Buy A Higher Model Within Budget
Let’s just say you have a six to seven lakhs budget, you will be able to afford a lower segment car if you decide to buy a brand-new car. But if you choose to go the used car route you might be able to afford a Mahindra XUV500. That means more car within the same budget! If you have always dreamt of owning a luxury SUV within your budget then this is your chance. Bring home your dream ride at the price of a lower segment car.
3. The Bulk Of Depreciation
With any new car you will buy, you start losing money the minute you drive it off the lot. According to some statistics you lose as much as 65% of your money by the fifth year of ownership. The bulk of this depreciation occurs within the first year. So, If you buy a car which is one or two years old, it will still depreciate, but at a much slower rate and you would have dodged the better part of it.
4. Lower Insurance Premiums
One lesser known fact is that the insurance premiums also get affected by the age of the car. The premiums on a new car are much higher than a pre-worshipped one. Since the price of the car has already depreciated, you save money on a monthly basis in terms of the insurance premium. With a little bit of research beforehand, you will be able to save considerably on your used car as far as that goes.
5. Better Value For Money
When buying a used car, the deal is, you pay less than or around 50% of its original cost for more than or around 80-85% of its life. Meaning you get much more utility out of the car for a much lesser price. Not just that, apart from saving, you save money owning and selling it. Not only are you not affected as much from depreciation, you have saved in terms of premiums during your ownership. Had you bought a brand-new car these factors ultimately end up in you losing precious money?
Used cars might not be as shiny as the ones right off the showroom, they might not have their plastic seat coverings intact but they sure are a smart option for a buyer with a budget. Today used cars market is much wider and reliable than it used to be. There are a number of certified pre-owned cars out there which have undergone an exhausting amount of inspections by the manufacturer or other certifying authority ensuring their quality and performance.
It all boils down to a simple question of whether you want to trade the privilege of owning a new car with these advantages. If you do, with a little research and careful examination you can own a car a segment or two higher than what you can otherwise afford. Give the used car idea some thought before you make your final choice.
