Buying a car is a dream harbour by many but with rise in prices of all commodities it is becoming difficult day-by-day to turn this dream into reality. If you are well off financially then you can always opt for a brand new car with new technology and modern gizmos but for those of you who are on a stringent budget it is better not to stretch your budget by leasing to get a high tech car. After a home, a car is typically the second most expensive purchase anyone makes and settling on a new vehicle is not a decision that one can take hastily. One can buy a new or certified used car from car dealers or even opt for the online mode for a more direct approach, but for used car purchase the valuation of the used car is a necessary first step.
So why should one opt for a second hand car when they have the option of purchasing a new one? Here are 5 benefits of buying a used car:
- Lower price tag– This is the first and in most cases the most important points of used car purchase. The price of used cars are much lower, sometimes 30% lesser, than its newer counterparts. The ones which are a year one are the most advantageous ones to buy as they have not experienced too much wear and tear. Is buying used car only advantageous because it costs lesser than a newer one? Well the answer is No!! There is more to buying used cars than its low cost.
- Depreciation– Car depreciation is a major downside for new cars. Once you roll those wheels on the road a new car loses its value by a huge margin, as much as 40%. But you do not have to worry about it in case of used cars. The resale value hardly reduces in case of used cars unless it undergoes huge damage.
- Insurance rates– One also faces lower insurance rates with an older car. This is because it would be less expensive to repair or replace a used car if it were stolen or in an accident. Annual registration fees are also less expensive for older cars.
- Wide range of choice– Now this may seem like a point that would fit well for new cars as well but here we are not only talking about the choice of car variants but also choice of cars within the same variant. The same car model will have different price tags in different sites and different dealers depending upon its condition and extent of usage.
- Lower registration fee and tax– In some places new cars are subjected to sales tax however such taxes are not imposed on used cars. Same goes for registration fees whereby the fee for used cars drop down by a large margin.
One might seem apprehensive in buying a used car because of the baggage it may possess in the form of repairs. But now a day all the second hand cars at dealership companies go through various checkpoints such as tyres, steering, interiors, body panels, body and frame, suspension, vehicle and owner details, brakes, accessories, engine/transmission/clutch, exteriors, battery, electronics and AC/heater prior to sale.
The option to buy used car is always riskier than buying a new car, because you don’t know with 100-percent surety where that car has been and how it was treated, and there are no guarantees that significant problems won’t arise before you’ve got it paid off. The good news however is that today’s vehicles are better than ever with detailed vehicle history reports that can reveal important details about a car’s past.