When you buy cars, you have many choices. Not just you can choose the model and make of your vehicle, you can decide whether you want to buy used cars or new cars. This is a vital decision and this can make a huge difference in finances in the next few years. Buying used cars can help you save money, provide quality transportation, and offer the same satisfaction as new cars. The trend of buying a second hand car could now be observed pan India.
Let’s have a look to several advantages of buying a used car:
- Less depreciation
New cars depreciate almost 20% the moment they are driven. Many cars lose 10% of their value in the first year. So, 30% of the value is lost in the first year itself. You can avoid this by purchasing a used car. With used cars, most of the depreciation has occurred already.
- Reduce insurance cost
A major factor to decide the car insurance cost is the car’s value. The value of a used car is less compared to a new car and thus the insurance cost should be less. With the use of the used car price calculator, you can calculate the correct valuation or market valuation of the car.
- More money for your car
Shopping for a pre-owned car might be a lot of fun than buying a new car. As a lot of depreciation has already happened, it makes sense to buy a used car. Your budget might afford you an entry-level car, however, if you shop for used cars, you can buy a better equipped or more fancy car with the same budget. A used car valuation tool can help you know the amount you can save.
- No exaggerated cost
Deals on new cars look great, however, many new cars have crazy or hidden fees including shipping charges and hidden advertising fees. Used cars do not have hidden fees and you can check many things carefully before making an informed buying decision.
- Thoroughly inspected and certified cars
Certified used cars assure buyers to get a quality and thoroughly inspected car, which is a bargain. Second hand cars have been certified, inspected, and refurbished by certifying authorities or by the manufacturer assuring the car is of high quality. Certified used cars have special financing, extended warranty, and other uses. New cars are just new. Top dealerships help in choosing the right cars.
- Reduced customization costs
You do not need expensive add-ons dealership while buying used cars. You might install yourself at a lower cost compared to a new car. This is a good way of saving money while buying used cars.
Some used cars have a part of the original warranty and some might create a new warranty. If there is an extended warranty on used cars then factory trained technicians might repair your vehicle using quality parts and they might offer speedy services.
- Reduced annual registration fees
The rate of the annual registration fee is mainly based on the model, year, and value of your car. The rate is the highest during the initial three years. You can save a lot of money if you avoid buying a new car. You can save annual registration fees if you buy a car, which is three years old. It’s going to be a win-win situation for you.
- Better for environment
Almost 25% of the car’s carbon dioxide is produced during the initial shipment and manufacturing of the car. Buying used cars can minimize carbon dioxide into the environment. These cars can impact the environment much less than hybrid and new vehicles. Hybrid cars use lead-acid, and lithium-ion batteries, which have a greater environmental impact compared to used cars.
Now with the availability of tools you can easily determine the fair market value of used cars and can compare to get the best deal. Orange Book Value or OBV is an independent, unbiased, and objective tool that offers the fair market price of a used car within 10 seconds. The tool is based on Machine Learning and Data Science Methodology. It is used by leading insurance companies, Banks, OEMs, and NBFCs.