Why Buy A Second Hand Car

By BankBazaar | January 4, 2016

Why Buy A Second Hand Car

If you are planning to buy a car this season, you may want to contemplate either buying a brand-new car or settling for a pre-used model. While you may be tempted to buy a new car, there are new models emerging almost every month which are better and costlier, not to mention the beating your savings will take. So for those who wish to drive a car and yet manage their funds in the long run, buying a used car may be a smart option.

These days the used-car market is witnessing huge growth as more and more people are opting to buy secondhand cars. The biggest benefit of buying a used car is that you don’t put a dent in your savings and yet manage to own a car of your choice.

There’s more to why buying a secondhand car could be a better bet than opting for a new one.

Certified Pre-Owned Cars Galore

Gone are the days when the pre-used car market was a highly unorganized sector. If you are worried about the quality of the car, its engine and associated parts when opting for a used car, there is some good news for you!

Major car manufacturers have started selling certified used cars. They even have dedicated sellers for them. All cars that come for resale at the dealer showrooms are tested by the car manufacturers. Cars are resold only after being tested for quality and approved.

So you need not consult a mechanic regarding the quality of the car, as it’s already certified by the manufacturers. You can rest assured that the used car will be in a good shape.

Better resale options

Buying a new car may have its own charm, but the price of a new car drops far more significantly when compared to a used one. The value of a car usually depreciates the most in the first year. Suppose you buy a new car worth Rs. 7 Lakhs and you need to sell it within a year of its purchase due to some accidental damage or otherwise. Chances are that with so many new car models around, you will have to settle for at least Rs. 1 Lakh less than your actual purchase price.

Compare this to pre-used cars where you can get a better deal when you sell off your car. The value of a used car also depreciates, but not as much as that of a new one. Also, if your pre-used car is a popular model, then you are likely to get a much better deal when you sell it.

Availability of Used Car Loans

Many car buyers opt for Used Car Loans these days to buy their desired car model. Earlier banks were reluctant to offer loans for pre-used cars, but with a growing secondhand car market, the tables have turned and you can easily get a Used Car Loan.

Since the price of a pre-used car is usually lower than that of a new car, a lesser loan amount will suffice and even the EMIs will be smaller. So, your monthly budget too won’t go for a toss and you can easily repay the loan in a short tenure.

Useful tips for buying a secondhand car

  • Opt for certified company cars.
  • Do your own review of the car’s engine and essential parts even though they may have been tested by the car dealer.
  • Opt for popular models and colours like whites and silver which will have a better resale value.
  • Test drive the car before you choose the one best suited for your use.
  • If you are planning to apply for a Used Car Loan, make sure you have the loan documents ready before approaching the car dealer. Additionally, do thorough research about the best available Used Car Loan and don’t blindly opt for the one suggested by the car dealer.

With a growing pre-used car market, opting for a secondhand car is not a matter of your social status, but all about making a smarter choice! So think and act wisely!

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