It is indeed a great feeling to buy a brand new car than going in for a second hand one but it surely makes financial sense to buy a used car. Apart from the savings, one also gets to benefit in many other ways when one buys a used car. Some of the benefits of buying a pre-owned car are listed below:
Old cars are always much cheaper than new cars but there is always a problem of inheriting the problems faced by the previous owner. This can be easily negated by checking whether the car is certified or not. If you have always dreamt of owning a luxury car but are not able to do so because of budget problems, you can easily enjoy the pleasure of driving a luxury car by buying a second hand model.
Low Depreciation Rates
A newly acquired car depreciates at a higher rate than an old car and that is where you are set to gain. Cars lose some value with each passing month and mile. But the highest loss in value occurs in the first year and it is close to 40%. When buying an old car, you do not have to face any such huge depreciation. Also, there is less mental depreciation since you do not have to worry about the rock chip in the paint or about the parking-lot ding.
Low Insurance Rates
Just similar to financing, insurance rates are also affected by the age of a car. But in case of used cars, insurance rates tend to be less expensive. Those who do a little bit of pre-purchase research get saved from the insurance sticker shock, irrespective of which vehicle they choose.
When you purchase a used car from a company owned used car outlet, you also get a warranty on the vehicle. However, this warranty comes with a certain limit and it covers certain kms that you travel in a stipulated time.
Most ads for cars usually gloss over the tax issue. Many state laws levy taxes on purchase of new cars but no tax is levied on used cars. This way the buyers of old cars can save on a lot of money
Decent condition of used cars these days
Gone are the days when used cars meant shabby, worn-out exteriors and interiors and scratches all over. The users in today’s age do not have to sacrifice reliability and overall condition to strike a good deal on a used car. There are plenty of options in the used cars segment and you can select a car that is scratch-free and in good mechanical shape. You can easily finalize one that is “looks like new”. Moreover, when you purchase from big dealers, certified pre-owned vehicles with a manufacturer’s warranty often meet higher detailing, appearance and mechanical standards.
So, the next time you think of buying a new car, do give a though about spending your hard earned money on a pre-owned car as it is far more beneficial than you would have thought.
Are you looking to buy one? Have a look at the latest pre-owned cars here.