With increased stress on social distancing, many users of public transport have decided to, well, distance themselves from shared mobility systems. Instead, there has been an increased interest in buying personal vehicles, and a direct result of this is an increase in demand for new cars. While this has certainly helped the car market recover from the effects of COVID-19 and the resultant lockdown, it has also led to the development of huge waiting periods of popular models.
For example, high-selling small cars, including the likes of Maruti Alto, WagonR, Maruti Swift, and Hyundai i20, require buyers to wait for anywhere between 1-6 months. Even some of the entry-level sedans, like the Maruti Dzire, command a waiting period of more than 6 months. The waitlist for Maruti Ertiga, for instance, has doubled from 3-4 weeks earlier to 6-8 weeks now. While carmakers are ramping up the production to meet the increased demand, waiting periods still range from a few weeks to a few months.
“Keeping the unprecedented demand in mind, we have fast-tracked the process of increasing the production capacity both at our Nasik facility and the supplier end. Initially, we had planned for a capacity of about 2,000 vehicles per month and have now ramped up substantially to 3,000 and then 3,500 units per month in two short phases. This would help us bring down the waiting period to a reasonable timeline.”Vijay Nakra, CEO (automotive division) at M&M
In such a scenario, where they wait for the delivery of a new car can get really bothersome, it makes sense to look at the used options. Traditionally, buying a used car over a new one has always had many benefits. However, with the recent upsurge in demand for new cars and the resultant escalation in the waiting periods, buying a second-hand car has suddenly started making even more sense. Through the purchase of a pre-owned vehicle, one can not only skip the long waiting period but can even benefit from several other factors that have been discussed below –
First things first, buying used can help you save some money. As cars are depreciating assets, they start losing value as soon as they are purchased. What this means is that the person who buys a sparingly used, less aged car is the one who actually faces the least benefit. For instance, in case a brand new car costs Rs 8 lakh (on-road), you can buy the same vehicle after a few months with just a few miles on the odo for less than Rs 7 lakh.
Another benefit of buying used is that you can buy a bigger car within your budget. For example, you can get a sparingly used well-maintained Maruti Ciaz or a Honda City for the price of a Maruti Swift. Generally, bigger cars tend to offer more comfort, better features, increased safety and of course a higher social status.
As we said, a new car depreciates as soon as you purchase it. As soon as you drive out of a showroom with your new car, its value takes a hit, and most cars depreciate by up to 30% in the first year itself. So, if you purchase a new car worth Rs 10 lakh, it won’t be worth more than 7 lakh after a year. On the other hand, if you purchase a used car worth Rs 10 lakh, it will still be at least worth Rs 8.5 lakh after a year. So, in the end, you end up losing less money if buying a used car.
Many car manufacturers have their in-house pre-owned divisions and an increasing number of financial institutions are now offering easy loans for buying used cars. Hence if you end up buying a used car, you do not have to worry about high EMIs. Some financial services even provide zero downpayment options on the purchase of used cars. At CARS24, you can get a quick car loan with minimum documentation and the amount is disbursed in about 48 hours!
One of the biggest apprehensions in the mind of used car buyers has been about the car’s questionable reliability. Furthermore, almost all owners end up buying ‘extended warranty’ in the first place. What this means is that if you buy a used car that is less than, say, 3 years old, you end up benefitting from at least half of the leftover warranty period. Also, now, in the digital age, it has become quite easy to obtain a service record of a used car.
An added benefit of buying a used car at CARS24 is that our cars come are reconditioned to as good as new; plus you get a free 3-month warranty.
Planning to buy a used car? At Cars24, you can find a wide range of second-hand cars, name the car and we have it in our inventory! to choose from. Not just this, you can also check out our old car valuation tool to find out the right resale value of any used car on sale in the country. Not just this, we also offer an amazing platform to help you sell your used car online and we even take care of all the paperwork, including the RC transfer, totally free of cost.