There are several features to take into consideration while buying a car – why should we buy a used car? If you are trying to handle your finances wisely, choosing a second-hand car would be a wise decision. Though the idea of buying a new car might sound enticing, the fast rate of devaluation, cost, and better insurance, among others, do not work in the Favor of new cars.
The global used car market is witnessing growth and is projected to reach USD 2,980.2 billion by 2030.
Value for Money
Secondhand cars come with a less costly tag and provide a much better value for the money paid. You might compare many models from numerous used car dealerships, and choose the model based on your requirement.
During the process, evaluate the provided interest rates and select the dealer who offers the most favorable rate for the vehicle. Opting to buy from a private seller could potentially result in a more competitive price, as there are no intermediary commissions involved. To fund the acquisition of your desired used car, consider securing a vehicle loan, allowing you to drive away with the car you've always wanted.
Slow Rate of Depreciation
A big drawback of buying a new car is that its value denigrates the moment the car is out of the showroom. The industry value of the car reduces at a very fast pace in the initial years of the car. Hence, you might evade this massive devaluation hit by choosing a second-hand car. Though a used car will depreciate, you will lose money less quickly.
Lower Insurance and Registration Charges
Insurance rates typically depend on the age of the vehicle, with newer cars incurring higher insurance costs and older ones generally having lower premiums. Similarly, registration fees are influenced by the transaction price of the car, so opting for a pre-owned vehicle can result in lower registration expenses.
It’s Easier to Get Financing for a Used Car than a New One
The advantage of purchasing a second-hand car is that it is easier to get financing. A new vehicle loses up to 20% of its value as soon as you drive out of the showroom, so the banks are less expected to give you a loan for one. However, as a used car has already been denigrated, it is simpler for the banks to offer you a loan. It means that you all have an easier time getting into your dream car.
Lower Loan Amount to Be Borrowed
Opting for a used car can result in a reduced loan amount, given their lower price. Numerous financial institutions provide used car loans with favorable terms, such as higher borrowing limits and attractive interest rates.
The presence of competitive interest rates implies more manageable Equated Monthly Installments (EMIs) for repayment. Opting for a used car loan allows you to purchase a pre-owned vehicle without encountering financial challenges. Considering the essential role of cars in daily transportation, choosing to invest in a second-hand car is a prudent choice.
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