Credit Mantra, New Delhi(Id# kLm1jM9Vmf)

Benefits Of Buying Used Car

    Used cars are way more affordable than a brand-new vehicle

    With used vehicles, there are no added costs involved

    You can get a used car insured at a much lower price 

The most obvious reason is that they are way more affordable than a 

brand-new vehicle. Many times the price difference between the two could

 be as big as 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. The used car 

market is also the best place to buy your dream vehicle which, as a 

brand-new car, might have been out of your budget.

One of the reasons why used cars are cheaper 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. 

However, that's not the case with used cars, they depreciate at a much 

lesser pace which means even if you sell your used vehicle after 3 

years, you can get almost the same value for it if the vehicle is kept 

in a good condition. 

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, thus getting full value for your money.

Many new car buyers get extended warranties while purchasing a new 

vehicle that goes up to 5 years. If you manage to find such a vehicle 

that's less than 5 years old, you can enjoy a company warranty on that. 

Some carmakers even offer an extended warranty of up to 7 years, which 

you can purchase as the new owner of the car. 

But if you are not that lucky, then fret not. 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 premium compared to a new 

vehicle. 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. 

Although used cars attract a higher interest rate when applying for a

 loan, given the fact that the loan amount and EMI period are likely to 

be lesser compared to a brand-new vehicle, the monthly payment you make 

will be much lesser.