Purchasing a car is always a matter of pride and an indication of your social status in the society. However, this is usually the case when we end up investing into a brand new car. Purchasing a used car is still not seen as an acceptable norm in India, but we beg to differ. In case you have been wondering which car is right for you: new or used, our guide below will show how a used car is always a better proposition than a new one With the used car industry fast becoming organized, purchasing a pre-owned car is now a hassle free experience in most cases. So if you are in the market for purchasing a car, you might want to have a look at used options for these valid 5 reasons
It is no rocket science that a used car is cheaper to purchase. But more than this, a well kept used car is better value for money than a new one. For example, if a brand new sedan costs Rs 8 lakh (on-road), you can buy a well kept, less used and few months old model of the same car for about 6-7 lakh, thus getting more value for your money. This is true for any given car in India.
Likewise, if you are on a tight budget, you will have more options to buy among used cars than new ones. For example, if you have Rs 2 lakh to spare, the only new car you can buy is a base model of the Tata Nano. On the other side, the same money can fetch you options like the Alto, Wagon R, Santro, i10 and so on!
This point is in continuation to the first one. Lets take a perfect example of a middle class family person who wants a bigger car for his expanding family. In a budget of Rs 5 lakh for new cars, he can probably look at the Hyundai Grand i10 or the soon to be launched Tata Tigor. On the other side, in the same amount of money, he can happily purchase used models of the Maruti Dzire, the Hyundai Verna or even the old Honda City. These cars are definitely segments above cars like the Grand i10 or the Tigor. Bigger cars offer more comfort, better features, increased safety and ofcourse a higher social status.
This is a fact that most buyers aren’t aware of. Every car has a depreciation value attached it to. You drive out of a new car showroom and the car’s value goes down from day number one! Most cars see a depreciation of 25-30% in the first year and another 10-15% in the second year. This means if you sell a 8 lakh rupee car after 3 years, be ready to bear a loss of 4 lakh.
On the other hand, if you purchase a similar car from the used car market and sell it off after 3 years, you will be losing about half the money only. This is because when you buy a used car, the first owner has already absorbed the depreciation amount. Sounds nice?
As we said above, the used car market is getting organized now. Most car manufacturers have their own pre-owned divisions and an increasing number of financial institutions are now offering loans at lucrative rates. Hence if you end up buying a used car, you do not have to worry about high EMIs any more. Some manufacturer with used car divisions are also offering ‘zero down payment’ schemes now. Go ahead, splurge!
One of the biggest apprehensions in the mind of used car buyers has been about the car’s questionable reliability. However, modern day engineering has made cars very reliable. Further, the warranty periods have increased and most owners end up purchasing ‘extended warranty’ in the first place. This means if you are buying a used car which is 1-3 years old, you don’t have to worry about its reliability.
It has also become easier for a car owner to get the service history from any authorized workshop and show the same to the buyer.
By now, we hope you have the right answer to the question of which Car Is Right for You: New or Used? As you have read, buying a used car is now a beneficial decision. You get more bang for buck, can upgrade to a bigger car and have easy finance schemes along with peace of mind. Infact, investing into a pre-owned car also means you can change cars every few years without losing a high amount of money on it!
So if you want to sell your old car and buy a bigger a bigger ‘new’ used car, the first step is to head over for a free online valuation. You may also want to read our article on the best used sedans in Rs 2 lakh.