10 Benefits of Buying a Used Car

The concept of basic needs has been turned on its head due to the tragedy caused by the Covid-19 pandemic. The existing basic needs were shelter, cloth and food, but now the need of having a vehicle has also come into awareness among people.

Since the outbreak of coronavirus pandemic as more and more people have begun to avoid all public transport options and opt for a personal mode of transportation in order to stay away from unwanted transmission and risk of infection.

Having a car in India can be looked at from various different perspectives such as, for one individual it might be a necessity and for a few it a more of a status symbol and for the others it is indeed a fantasy coming to life.

During the pandemic, public transportation wasn’t efficient enough and also people weren’t confident enough to travel among the crowd.

The safety concerns also had an impact on the decision whether to buy a car or not and more importantly is it good to buy second hand car since the new car dealerships were shut and production was limited due to various restrictions.

Buying a car isn’t an impulsive decision for the majority, rather it is a huge financial decision which requires planning along with big savings as the majority of people tend to think, are cars a good investment?

Slowly and steadily the concept of opting to buy used cars is seeping into the Indian community. The pre-owned cars can be as good as buying a new car, if you find the right one.

Buying a pre-owned car involves a lot of research, knowledge about cars and also it comes with a big risk, therefore, many people refrain from going down this road.

The concept of buying a second hand car has been completely revamped with online platforms like CARS24, where one can easily find the right one without much hassle.

If the question, is it good to buy second hand car, still troubling you, then you don’t need to go anywhere but search for a few certified digital platforms on the internet. Most commonly, the condition and the reliability of a used car is a big reason to worry for the common man.

With online used car dealers, the trust of a common man deciding to buy used cars has increased manifold. Usually, the offline used car dealers don’t carry out extensive checks on a used car as their sole aim is sales.

Unlike the dealers, digital platforms such as CARS24, always go deep into the checks with thorough inspection of various parameters of the car before approving it for sale in order to not play with the customer’s trust.

Various guarantees and warranties are given after sales so as to keep the customer’s trust intact with the platform. There are a lot of questions that come into the mind of a buyer when thinking of buying a second hand car.

10 Reasons Why Investing in a Used Car May Be Beneficial for You:

1. Depreciates at a Slower Rate

Buying a used car is financially wise because the cars go through depreciation as well as general wear and tear. There always remains a question of finding the right one in order to save money. Hence, it is highly advisable to go for certified used cars from trusted vendors.

At CARS24 there is a stringent 140-point quality test done on a car before putting it on sale for buyers. In fact, these cars are further refurbished so that they appear as good as the new ones with an average amount spent on each of Rs 20000.

The depreciation rate on used cars is less and this majorly impacts the pricing of the car and makes it quite cost-effective when compared to a new car. Depreciation can be explained as the loss of value of one’s asset.

The depreciation is dependent upon a number of factors. The car’s value is depreciated majorly because of the wear and tear. So when we talk about new cars, their value gets depreciated by 15-30 percent within a span of a year.

This is the loss of value one has to bear when buying a new car. On the other hand, the used cars have already gone through vicious depreciation earlier. We can understand it as that there will not be a huge difference in value when selling a used car.

Read More: Everything You Need To Know About Car Depreciation

2. Lower Insurance Costs 

The insurance premiums for the new car are way too high when compared to a used car. This is because the insurance premium is directly related to the age of the car, which means that the newer the car, the higher the premium one has to pay for insurance.

So the insurance premium payment for a used car will be significantly cheaper, making it more cost effective. 

Read More: Car Insurance Policy – Everything You Ever Wanted to Know

3. Assured Reliability

The most effective way of proving one’s trust is by giving a warranty against the product. Digital platforms like CARS24 give comprehensive warranties to give assured reliability to the customer.

The interested buyers get a sense of security and relief as all the future repairs and maintenance costs are taken care of by CARS24 itself.

4. Certified Cars, Backed by Technology and Team 

To bring about more clarity to the difference between the certified used cars which are backed by technology and team, and uncertified used cars, we’ll be looking at the detailed procedure of both:

We can divide the entire used cars segment into these two categories. The certified used cars is a new concept for the Indian buyers which has come to limelight with the advent of online platforms. The majority of offline dealers have non-certified used cars in their lineup.

Now looking at the detailed difference, firstly, a non-certified seller could be anybody whereas a certified used car seller is somebody who ensures the condition of the car by conducting various tests.

The negatives of not having any certification means that there would not be any way to check whether the car is non-accidental or not or if there has been some type of tampering done with the car.

The benefit of buying a car directly from the dealer eliminates the cost of the middlemen associated with the sale. Hence, buying directly is cheaper but it increases the risk manifold because of no certification.

The certified used car dealer will have the tests reports and various other details which infuses confidence in the buyer especially while purchasing the used car. These types of dealers will be a bit more expensive than the offline dealerships.  

5. Offers Good Variety Within Your Budget

Look out for the basic requirements and features you need in your car. Selection of the car is very critical. A deep insight to your actual needs should be given well beforehand making the decision.

There are a plethora of used cars available within the budget selected by you as compared to the number of new cars, i.e. the variety in the used car segment is on the higher side.

The buying options could be a direct owner, an offline used car dealer, an online used car dealer and many more.

Ask multiple questions without hesitation from the person selling the car about the car’s usage, reason of selling, age etc. Getting to know the car will improve the chances of buying the right one.

6. Saves Money

Buying a used car saves a lot of money and it is the most affordable way of purchasing a car. One should always opt for certified online used car retailers as they have an end to end managed and transparent system.

They have almost the same advantages to that of OEMs when it comes to the quality of the car. This is because just like the OEMs these platforms provide reliability through the numerous tests they do on the vehicle, and also the similar OEMs they give warranty against the car sold.

In the case of an offline dealer, all these inspections and checks at a workshop or by a mechanic costs a lot. Moreover, the warranty provided by the certified pre-owned car dealers helps a lot if a problem arises within the car. This in turn results in saving a lot of sum for the buyer.

One of the most popular examples of such online pre-owned car dealerships is CARS24. Not only does their platform have the best of cars, they win the trust by giving a guaranteed refund if the buyer isn’t satisfied with the purchase of the car and returns it within 5 days.

There is also an additional feature to this buyback feature, there is a pre-fixed value of the car upto eighteen months, if one plans to return or exchange their car.

7. Financing is Easy and Rates Are Favorable

With used cars you will have to consider the high-interest rates that banks and NBFCs offer, but you can compare them and choose the one that suits your budget the most.

Good upfront payment can ensure lower interest rates which would be easier for you in the long run.

Buying from online dealerships has perks of its own as they provide assistance in availing loans for your used car purchase.

8. Lower registration fees:

In India, the cost of registering a new car is significantly higher than registering a used car. The registration fees for new cars can be up to 4 times higher than that of a used car, depending on the state.

For example, in Maharashtra, the registration fee for a new car costing up to Rs. 10 lakhs is around Rs. 43,000, while for a used car of the same value, it is around Rs. 10,000. This difference in registration fees can save you money on an ongoing basis.

9. More Negotiating Power

In India, there is a large market for used cars, and sellers are often motivated to sell their cars quickly. This means that there is more room for negotiation on the price of a used car than on the price of a new car.

Additionally, there are many online platforms and dealerships that specialize in buying and selling used cars, which can provide more options for buyers and increase their negotiating power.

10. Reduced environmental impact:

India is a country that is facing significant environmental challenges, and reducing the demand for new cars can help to reduce the carbon footprint of the country. The manufacturing process for new cars can be resource-intensive and produce a significant amount of waste.

By buying a used car, you are reducing the demand for new cars and promoting the reuse of existing resources. Additionally, many Indian cities have high levels of air pollution, and buying a used car with a lower emission rating can help to reduce your impact on the environment.

FAQs

Q. Is it good to buy used cars for the first time?

A. Yes, it can be a good option, but you should do your research and choose a car in good condition.
 

Q. Is it good to take a used car loan?

A. Yes, if you need financing, but shop around for the best rates and only borrow what you can afford to repay.