There is this nice feeling that you get when you buy a new vehicle. While for some it could be something that they are passionate about, while for others a car could be a necessary tool that they require for getting from point A to point B. In any case, whenever someone is planning to buy a car, the first question that most of them will have is 'Do I buy a brand-new vehicle or just go for a used car?' If you among those who think that the former is the right choice, you might not be wrong. Buying a new vehicle does have a lot of perks. But if that's not the case, and you are open to suggestions, here are 7 reasons why you should consider going for a pre-owned vehicle.
- 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.
Also Read: How To Check A Used Car Before Buying
- 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.
Also Read: Buying A Used Car vs A New Car - Pros And Cons
- 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.
Also Read: Most Common Places To Check For Rust When Buying A Used Car
- 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.
Also Read: Insurance For Used Cars: Things You Should Know
- 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.