4 Practical Reasons Why You Should Buy a Used Car
No one has in mind a used car when they think of owning a car, especially if itâ€™s their first car. Although it is a perfectly fine decision to buy a new car â€“ for it has its benefits â€“ it is considered a practical choice for many to buy a used car. There are ups and downs of buying a used car as well as a new one. The biggest question here is, which of the two is better? Many automobile experts opine that buying a used car is mostly the better option, especially if you are buying your first car. Here are 4 reasons why:
- Save Money
One of the key benefits of buying a used car is that you can save a lot of money. Instead of a buying new Maruti Suzuki Ertiga, which cost upward of 8 lakhs, you can instead buy the same car model, which would be a used Ertiga in Pune or some other city at Rs 6 lakhs or even lower, depending on the age and condition of the car. This is not to say that a new Maruti Suzuki Ertiga is not a good choice; it certainly is. But you can save a minimum of Rs 2 lakhs by simply going for a used car. You can save even more if the car is 2-3 years old.
- Low Depreciation
One thing you should know about cars is that they are depreciating assets. Their value reduces with time. A carâ€™s value can depreciate by up to 15-20% within the first year of purchase. This means that when you decide to buy a used car, much of its value has been depreciated already.
Another thing you should know about cars is that their rate of depreciation lowers with time. This also means that the rate of depreciation of a car is highest when itâ€™s new and it lowers with time. When you buy a used car, its rate of depreciation is at its lowest since the carâ€™s purchase. And it will further lower with time. When you decide to sell your car in the future, and you have maintained it well, the depreciation would be minimal, and you would get a good value for it.
- Go Beyond Your Budget
Not literally, but in a manner of speaking. When someone plans to buy a car, they set aside a budget for the car. For example, letâ€™s assume itâ€™s for Rs 8 lakhs. Now, when you were checking out cars, you liked an SUV, but its price was Rs 13 lakhs. You cannot buy it because itâ€™s Rs 5 lakhs beyond your budget. But you can buy that car, just a used car instead of a new one. This way, you will be able to go beyond your budget to buy a car that you could not afford. You will be surprised to find how many people buy cars this way. When you have decided on a car, look for second-hand car dealers in Pune, or any other city you live in, that will sell you the used version of the car you want.
- Low Insurance Cost
Just as a carâ€™s rate of depreciation lowers with time, so does the cost of insurance. What this means is that when you buy a used automatic car in Pune, you do not have to pay the high insurance renewal fee that new car owners do. The cost of renewal is much lower, and it will lower further every year.
When you wish to buy a car, buying a new one isnâ€™t the only choice you have. In most cases, it is prudent to buy a used car. Now you know 4 reasons why itâ€™s more practical to buy a used car than a new one.