Top 10 Benefits of Used Cars

The used cars market in India has begun to flourish only recently. Even 10 years ago, there was a stigma attached with buying a used car and most people opted for brand new vehicles. Moreover, the used car market was not this organized and there were no large players. The sale of used cars was within a trust circle i.e. only among family members, friends or relatives. However, Maruti Suzuki understood the potential of the used cars market in India and started off its used cars line, True Value back in 2001. Since then, the used cars in India market have come a long way. The ratio between new cars being sold and used cars being sold is 1:1.1 in the country, which is around 1:3 in the USA. Even though it is still ages before we manage to catch up with the USA, however, the trend has begun.

Used Cars

Today, there are a number of certified used cars dealers such as H Promise (by Hyundai), First Choice by Mahindra and Mahindra, AutoTerrace by Honda and Ford Assure. These lines buy and sell used cars after checking them on numerous points. If there is some part of the car that is damaged, then it is replaced with original parts from these companies. A warranty of 1 year is offered to every car sold along with two free servicing. The transfer in ownership is also handled by these companies. Financing options for used cars have become better. Many banks and financing institutions provide loans to buy used cars. Maruti Suzuki has a policy of zero down payment and lowest EMI for the cars that they sell.

There are several benefits to buying used cars. The top 10 benefits of buying used cars are discussed below:

  1. Used Cars are Inexpensive: One of the biggest advantages of used cars is that they are less expensive. For example, if you want to buy a brand new Wagon R, you would have to spend around Rs 4.5 lakhs (ex-showroom) while for a Wagon R which is around a year old, you would have to pay around Rs 4 lakhs or so.
  2. Instant Delivery of the Car: Sometimes popular models of certain cars or newly launched models have a long booking period. However, when it comes to used cars, you can take away the car the instant you decide to buy it. You can simply go over to the individual selling the car or the dealer, inspect it, make the payment and buy the car.
  3. Wide Choice of Cars: The number of cars available in the used cars bracket is much more. You can get sedans, hatchbacks, SUVs, MUVs and even luxury saloons which are no more produced in the used car market. For example, hatchbacks such as Maruti 800 are still available in the used car market. Similarly, the 2008 model of the Honda City, Chevrolet Optra, Fiat Palio, Ford Ikon and other vehicles which have been discontinued by their respective companies are sold in the used car market.
  4. Avenue for Practicing Driving: A lot of people buy old cars just to practice their driving skills on. Once they feel they are adept at driving, they simply sell the car off to buy a new model. If you commit a minor fender bender, you would not be much inclined to get it repaired in a used car as you would be in case of a new car.
  5. Economising on Fuel Expenses: Engines of used cars are already used to being warmed up and used and hence they are more fuel efficient. A new car would not turn out to be fuel efficient till it is driven for almost 5000kms or so. With a new car, you would get a mileage of around 10 to 12kmpl on an average hatchback initially which would later on increase. However, there is no such problem with a used car as the engine has been used adequately.
  6. Tax Savings: Road taxes on newer cars with more features are higher than those in used cars. For example, if you buy a car model which does not have an air conditioning included, you would have to pay lesser taxes. However, you can install an air conditioner and continue to pay the lowered tax rates.
  7. Low Depreciation Value: New cars suffer high depreciation costs. A new car can lose almost 40 percent of its value within its first month. However, used cars hardly lose value and hence you would realize a good amount when you go to sell the car.
  8. Insurance Payment: The insurance premium for used cars is lesser than that of new cars. The insurance premium of a car is determined by the age of the car. Hence, the older the car, the lesser would you have to pay as insurance premium.
  9. High Reliability of the Cars: A recent study has revealed that the latest car models that are launched in the market have almost 280 problems in about 100 vehicles, which were around 230 problems earlier of 100 vehicles. Therefore, as the number of models in later times has increased, their quality has reduced. Hence, it would be better to opt for an older car which would pose fewer problems.
  10. Less Worry About your Car: Even though car owners always worry about their cars, be it their first or their fourth, used car owners tend to worry lesser. You can park it out in the open without worrying about theft as used cars are stolen less. You would also not have to worry about your neighbours’ children chipping off the paint a bit while playing cricket in the gully if you buy a used car. It is totally worth the mental satisfaction!

There are a number of authorised car dealers in various cities which offer wide variety of used cars in affordable price ranges. These cars come with salient pricing and financing options which would not weigh down on your pocket much.

There are a number of authorised car dealers in various cities which offer wide variety of used cars in affordable price ranges. These cars come with salient pricing and financing options which would not weigh down on your pocket much.

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