Planning to buy a car? Well, the first question that might come to your mind is ‘Do I buy a brand-new vehicle or just go for a used car?’ If you are among those who think that the former is the right way to go, you are certainly not wrong. A brand-new vehicle does have a lot of perks. They are more reliable, get all the latest creature comforts, and are good for long-term usage. But, at the same time, a used car too comes with its share of benefits, and if you are open to considering it as an option, here are five reasons why we think a pre-owned car is better than a new one.
Also Read: Buying A Pre-Owned Car vs A New Car – Which Is Better?
Unlike new vehicles that depreciate as much as 60 per cent in the first 3 years, used car retain their value for longer
- The most obvious reason is that they are way more affordable than a brand-new vehicle. Many times, the price difference between a used car and its brand-new counterpart is over 50 per cent. So, if you are patient enough to find the right deal then you’ll end up saving a lot of money.
- So why are used cars so cheap? Well, that is because the depreciation on a new car is much higher. It’s during the first three years that a car loses most of its value, sometimes nearly 60 per cent. But with used cars, depreciation happens at a much slower pace which means even if you sell your used vehicle after 3 years, you can almost get the same value for it if the vehicle is kept in a good condition.
Also Read: Buying Used Cars: Things To Know About Used Car Loans - With used vehicles, there are no added costs involved. If it’s a new vehicle then you will have to pay for registration, road tax and other RTO charges. Whereas, when you buy a used car, you just pay for the vehicle. If you negotiate well, you can even get the seller to bear the transfer charges.
- Currently, there are many organised used car sellers in the market that offer a warranty of up to 1 year on a pre-owned vehicle. In fact, several carmakers themselves have a used vehicle division.
- Used cars also attract lesser insurance premiums compared to a new vehicles. Motor insurance premiums are calculated based on the market value of the vehicle. Thus, an insurance company will charge a higher premium on a brand-new car. But in the case of a pre-owned vehicle, because it has already lost most of its value due to depreciation, you can get it insured at a much lower price.