Buying a Used Car ! Know how to make it a Great Buy.
Buying used car is a smart decision, however, a tricky one. In India you don’t have used car pricing tools, vehicle history reports,etc, there are both advantages and disadvantages of buying a used car.
New cars depreciate by almost 25-30% in the 1st year
The advantages of buying a used car:
- You can save a lot of money
- Avoid huge 1st-year depreciation that applies to new car
- Buy a bigger and better car within the given budget
- You get much wider choice of cars within a given budget
- Flexibility to change faster
- Some older models are more appealing than their latest versions
- Today you can buy certified used cars, that have undergone multi-point checks and come with warranty and after sales services
The disadvantages of buying a used car:
- Buying a poor condition car (accidental, odometer tempered, poor condition, flood damaged cars)
- You don’t get latest gizmos and superior technology in used cars
- Dealing with individuals or unorganized dealers, who don’t have adequate knowledge about the features and benefits of the car. They are looking to get rid of the old car, rather than recommend you the right car that is suitable to your needs
- Tedious paperwork, higher used car finance rates
- Higher search cost. The time taken to find the right car can be longer and tedious, you may have to wait a good couple of months before you spot a right car
Savings up to 40%, buying a 3 to 5 year old used car
So, when does it make sense to buy a used car?
- You have limited budget
- You are a newbie, and want to hone your driving skills
- Don’t want to spend a lot of money on a (new car) depreciating item, which anyways you are going to sell after couple of years
- Buying an additional car for family
- Want to change fast. Same car for so long, boring. With plethora of new models getting launched, many will enter the used car market at lower prices