June, 2023
When it comes to making a wise financial decision, many budget-conscious car buyers turn to the allure of used cars. These pre-owned vehicles offer an enticing "value for money" proposition that is hard to resist. However, have you ever stopped to ponder why used cars are perceived in this favorable light? In this article, we will explore five compelling reasons that make purchasing second-hand cars an excellent value proposition.
The foremost reason behind the affordability of used cars is their significantly lower price tags compared to brand new vehicles. Second-hand cars inherently experience substantial price drops within a span of one to five years, ranging from 15% to 50%. This substantial reduction in price makes them far more accessible to those on a limited budget.
YDepreciation is an unavoidable aspect of car ownership, affecting the value of all vehicles. However, the rate of depreciation for used cars is considerably slower than that of their brand new counterparts. In most cases, pre-owned cars have already undergone their initial depreciation phase, mitigating the steepest portion of their depreciation curve, typically accounting for 20% to 25% of the sale value. Moreover, after the first three years of ownership, cars tend to depreciate at a significantly reduced rate. This means that even after purchasing a used car and utilizing it for several years, you can still sell it at a competitive price.
One of the notable advantages of purchasing a used car is the ability to upgrade to a higher segment within the same price range. By opting for a slightly older model, you can enjoy an elevated value proposition. Even with higher mileage displayed on the odometer, these used cars can offer attractive features such as a decent music system equipped with USB, Bluetooth, and AUX connectivity. Additionally, safety features like airbags, ABS, and reverse parking sensors are often available in second-hand cars that are four to five years old and priced under two lakh rupees.
Lower running costs are another appealing aspect of purchasing second-hand cars, primarily due to reduced insurance expenses. As a used car ages, the associated insurance premiums decrease by as much as 30% to 40%. This reduction is a result of the insurance premium being calculated based on the car's depreciated value at the time of sale or purchase. Consequently, used cars tend to be accompanied by more affordable insurance plans.
One of the most significant advantages of owning a second-hand car is the easy availability and widespread circulation of spare parts. This advantageous aspect ensures that servicing and maintenance become relatively hassle-free processes. As the used car market continues to grow and mature in India, acquiring spare parts for pre-owned vehicles has become increasingly convenient.
As the used car market evolves, so too does the manner in which we buy and sell these vehicles. With the rising availability of certified used cars and a plethora of beneficial features, second-hand cars have become more desirable than ever before. At True Value, we provide a platform where you can purchase certified used cars with warranties and free service benefits. We aim to deliver a car-buying experience that rivals purchasing a brand new vehicle. Our extensive range of used cars at True Value undergoes a rigorous evaluation process consisting of 376 checkpoints. This ensures that you receive a fair price, exemplary service, and a seamless buying process, benefiting both buyers and sellers alike.
Also Read: A Quick Guide to Selling Your Car Efficiently
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