While the automakers are launching new cars, the global pandemic has made many users shift to the used car market. The used car market has seen a sudden boom in terms of sales due to the rise in COVID-19 cases in India. Although the government has also planned to resume the Delhi Metro, people still prefer to commute via their own means of transport considering its safer. The used car market is also a convenient place for first-time drivers and those looking for a good car in an affordable price range. But are these cars really worth it? In today’s featured, we take you through the pros and cons of buying a used car!
Pros of buying a used car
So this is the upcoming Kia Sonet. Prices have not been revealed yet but keeping aside the exact calculations, it is estimated that a car’s value depriciated to almost 50%. The calculation for the first year is about 20%. That means if you buy a used car that was launched a year ago, you can save upto 20% on its original cost. Considering most people drive their cars less in the first year, if they are willing to sell it, you can surely grab the deal!
Remember when you went to you favourite brand’s car showroom the last time and the dealership staff told you about the price difference between two variants of the same car? Well, variants usually don’t matter in the used car market. If you search well, you gan get a top-spec less-driven car in the used car market at a price which you would have otherwise paid for a lower variant in case of buying a new car.
Lower Loan Amount
This is simple. The most obvious advantage among pros and cons of buying a used car is that you get the car at a cheaper price therefore you have to apply for a loan of a lesser amount and therefore, you are liable to pay a lesser interest on that too! Well, you can consider this advantage connected to the first one for sure but read further where we will let you know how this can be a disadvantage too.
Lower Insurance Premiums
Car insurance is another must-have! You are meant to get your car insured if you buy an old one or a new one. But the insurance premium for a new car is comparatively higher than an old car. If you search for a good vehicle in the used car market, the previous owner has already paid the hefty premiums when the car was new. Now you can easily pay the lesser premiums because the car’s IDV (Insured Declared Value) is lesser than what it was before.
Warranty on Repair
If you buy a used car from a brand authorised dealership, you get a warranty on the repair. Read this carefully. In my case, I bought a Maruti Suzuki car from a True Value dealership and the car was still under its original warranty from the factory. So I got dual benefits. For the first 3 years, my car was covered under MSIL’s warranty and post that I will get Tru Value’s additional warranty. Win-win situation!
Cons of buying a used car
You might find a dealership or and individual or maybe a YouTuber promoting cars under 50,000. Even we curated a list of car that are available under 50,000 but that wasn’t for you to buy and use for your daily commute. Usually, these cars are lemons. They look fine on the outside but can land you in huge repair costs while you use them. Same is the case with cheap luxury cars on sale. Be a very informed customer and check each and every possible detail before buying.
Buying from individuals
If you are buying straight from an individual, the manufacturer is not responsible for that. Provided, if the car comes with an already existing warranty straight from the manufacturer, you can get it transferred but you won’t get any warranty/guarantee if you buy from an individual. However, as mentioned above, the used car dealerships provide you with a warranty on used cars too.
Higher Interest Rates
In the above section, we mentioned that you need to apply for a loan of a lesser amount just because the price of the car is low. However, banks and loan providers usually charge a higher rate of interest on a used car loan than they do on a new car loan. Ther need to earn more anyhow so here’s the catch. You might save on the principle amount but can’t save on the interest rates.
Lack of choice
“I want a black Hyundai Creta SX(O)”. Well, that’s a statement you can’t make in the used car market. You have to explore a lot in order to find the perfect car for you. Let’s say for example you find a car that has got a good engine and suspension but lacks on features because its a lower variant. On the other hand, you find a higher variant model that has not been maintained properly. Therefore, searching for the perfect blend in the used car market is a bit challenging. Therefore this one is on our list of pros and cons of buying a used car.
Ever seen this kind of advertisement? Well, you won’t if you are buying a used car. New car manufacturers have to get rid of the stock at some particular time so they offer you huge discounts. The case with the used car market is a little different. There is no special month, they don’t have to worry about the year ends too. Although the prices are obviously lower in the used car markets, you don’t get that much “discounts”.
These were the pros and cons of buying a used car. If you plan to buy a used car, you can consider these pros and cons and decide for yourself. Share this article with all those peers looking to buy a used car and help them know about the insights of the experience.