Merits And Demerits Of Purchasing A Used Car

Pros of Buying Used Cars:

1. Buying a used car is a sound choice as it is pocket friendly, and also you let someone else take the biggest devaluation hit on the car.

2. Used cars have smaller average loan amounts than new ones, depending on the term of the loan.

3. Used car loans are usually shorter than those for new ones, enabling you to pay off the vehicles sooner.

4. Car insurance is one of the things everyone must have irrespective of whether the car is old or new, but the insurance premium for a new car is way higher in comparison to the old one because the previous owner has already paid the hefty premiums when the car was new.

5. If you buy used cars from a brand authorized dealership, you get a warranty on the repairs, meaning you get the dual benefits, you get the car at a cheap rate and you might also get a car that's still in its original warranty from the factory.

6. If you do your research well, in the used car market you might get a top-spec less-driven car at the price that you would have to pay for a lower variant in buying a new car.

7. A lot of luxury cars are offered at a reasonable price in the used car market which means you get to have your dream car at the price which you can afford it.

8. Buying a used car gives a wide range of choices - the higher you pay, the bigger the range you get.

Cons Of Buying Used Cars:

1. Although used cars are in demand they're not as reliable as the new ones. The older the car, the more money you need to put in on the repairs especially if it's no longer covered by the automaker's warranty.

2. Buying from a third party means that you could miss the protection against mechanical and electrical faults unless the vehicle is still under a manufacturing warranty.

3. Buying a new car lets you decide the colour, features, or any of those accessories according to your desires.

4. Long-term ownership will be an issue as The Ministry of Road Transport and Highways has proposed to increase the renewal of registration cost of passenger vehicles older than 15 years by 25 times. So, it could go to ₹15,000 from ₹600.

5. No matter how many benefits you get from the used car, in the end, the car is old and it has already been used by someone and you have to drive it. The design along with the features and gadgets are old.

6. Though you'll be saving on lesser down payments and insurance costs, used cars come with years of wear and tear in their parts and thousands of kilometres on their odometer, the accidents and dents are just a bonus.

7. Interest rates are usually higher for used cars compared to new cars. Partly because of the greater risk involved in used-car financing. For example, people with lower credit scores will often buy used cars.

8. Used cars may look fine on the outside but can land you in huge repair costs while you use them. The same is the case with cheap luxury cars on sale. One has to be extra careful and check every possible detail before buying.