The car market is growing rapidly. There is an array of choices available, from the basic models to high luxury cars. There are two types of customers in the car market that are divided on the basis of their spending capacity. For some people buying a car is like buying a vehicle for making their daily traveling easy but for some people, cars are a symbol of luxury that states their financial status in society.
For the same reason, car prices are going up every year with increasing luxuries and accessories in the cars. But quite ironically, the average life span of a car is going down despite equipped with high-end accessories, which brings in good news for potential used car buyers.
There is good news for buyers who are looking for basic cars. Many used cars are accessible in the market on fascinating prices. Since people like to upgrade their cars so the high- end models are also available.
For people who are buying their car for the first time, a used car makes more sense. When it comes to people who are using two-wheelers or public transportation, driving a second-hand car can be a good leaning.
But this doesn’t mean that they can blindly buy any car and it is going to be beneficial for them. There are a few questions that must be asked when buying a used car. Only after thorough market research, you should make a decision.
Now here in this post, we are discussing and clarifying reasons and benefits for buying a used car instead of a new car.
Used cars are money-saving business
If you are in the process of buying a used car then you must closely keep track of the good cars in the local market. You will find that you can save 50% of your money by buying a good-quality used car.
In buying cars, a pattern is observed that normally people sell their old car within a span of 5 years. If you closely watch the car market then you can get a nicer car without undergoing much repairing.
Remember, here the mind-set is not only to save the money but to get a good conditioned car. As it is a waste to buy a car which requires repairing and servicing after every 15 days. So, instead of focusing on an impressive exterior of the car, you must check the machinery before buying a used car.
Depreciation Has Already Occurred
The depreciation of a new car is very fast. Once a new car is on the roads every day the value of the car decreases. After certain kilometres, you will come down to a stage where your new car will have almost the same value as the well maintained second-hand car. If you are not a class freaky then buying a second-hand car is a wiser decision.
No Exaggerated Fees
Numerous latest cars have hidden fees and many new things have to be purchased to take it on the road. In a nutshell, a new car desires at least 10-15% of extra expenditure. This money can be saved if you buy a second-hand car. You can avoid the crazy expenditures which seem obvious for new cars.
But while buying an old car, ensure that the documents of the old car are complete. And the transfer of the ownership is properly done. Otherwise, you might get into great trouble.
Lower Customization Costs
Several used cars are already equipped with accessories and customizations like seat covers, interiors, music systems, and other things which might be necessary.
Of course, your personal choice can differ but you don’t have to instantly spend on the used car as in the case of a new car. Practically, you create a less hype of the used car purchase which proves to be an economical solution for you.
Certified and Thorough Inspection
Whenever you start looking for a used car, make sure that an experienced mechanic inspect a used car and gives it thumbs up. Remember that a certification from the dealer is required if you are purchasing a third party car. Certified pre-owned vehicles often have an extended warranty, special financing, and other on-road advantages. New cars simply hold the guarantee that they are brand-new. On the other hand, old cars are prepared to fulfil all the criteria for these new cars.
Normally a used car does not hold any warranty from the manufacturer’s side. But in case the car is still under warranty then make sure that the warranty card is given to you.
The extended period of warranty from the manufacturing side on a used car can provide factory-trained technicians to repair the car with quality parts and speedy service. Plus, you can utilize a portion of your savings from NOT buying a new car and have a warranty that covers everything like the new cars.
Lower Insurance Premiums
In case of a road accident and claims, insurance plays a vital role. Here the new cars have the advantage. As the car becomes old the insurance claim decreases. So, when buying a used car, keep in mind that the insurance is done and the premium till the date of the purchase is paid.
Here the role of the gap insurance comes into the picture which will cover the difference between what you paid for a new vehicle and what its depreciated value is, but it will raise your insurance premium. Gap insurance has fewer benefits for a used car as the depreciation has already occurred.
Better for the Environment
More than a quarter of the carbon dioxide a car produces during its life-cycle occurs during manufacturing and initial shipment. Buying a used car reduces carbon dioxide output into the environment. If you are buying a used car then make sure that it is environment-friendly. The car models come with pollution level checked such as eco- friendly certification. Buy a model that is not old enough to be eligible for a pollution certificate.
Lower Annual Registration Fees
The annual registration fee and road tax on a vehicle depend on its model and the year of purchase. Generally, the first three years have the highest rate and then levels off after five years. However, if you purchase a car that’s a minimum of three years old, you can save your registration and tax money. The car transfer papers will work for you.
If you are still confused about purchasing an old car then you must ask the ratio of used car purchased and new cars. You will come to know the real picture.
As discussed above, a car is an extremely valuable asset. Buying a new car is like a luxury but buying a used car can be a pleasant experience. If you buy a good conditioned car then it can easily go for three to five years as per the individual maintenance. So go ahead buy carefully getting the right answers for the questions asked when buying a used car. Be happy and enjoy riding your used car!
Mary Staab is a San Diego based Auto Financing blogger with many year of experience covered with Car sell/buy in San Diego, Financing and trading Autos. She has started her carrier from Auto City in 2010. Auto City only offers the highest-quality used cars for sale at extremely competitive prices. That special combination of quality and affordability ads up to one thing – real value to you, the customer.