The idea of purchasing a new car sounds tempting. But is it a wise decision financially, especially in the COVID-19 pandemic?
The skyrocketing prices, higher insurance premiums, and a quick rate of depreciation may not favour your decision.
However, given that there is plenty of car dealerships and authentic second-hand cars, you can opt for this option. It can be your sage decision ever. Do you want to know why? Read on the article to get an explanation.
Lubricate your savings
One of the apparent benefits of buying a used car is it will save you big bucks. A second-hand car usually comes with a lower price label, offering a better return on the value invested.
As said above, there are numerous car dealerships with several reliable cars. All you need to do is select the one considering your needs and lifestyle.
While making a selection, do compare the quotes of various cars to score a good deal. Furthermore, try to trade in with a private seller. In this case, you will not require to pay a commission to a middle agent.
Lessen the depreciation
The moment you drive your new car from the showroom, it begins to lose its value. After a few hours, the tag of ‘new’ will automatically disappear from your new four-wheeler.
Experts say that 20% value gets depreciated when driven off the lot, and many cars lose another 10% during the first year. Hence, you will not receive the same amount that you paid for it.
However, you can avoid that depreciation hit by buying 3-4 years old car. They have already suffered its maximum depreciation by that time and will not lose in the forthcoming years.
Lower rates of insurance premiums
You may or may not be knowing that the insurance premium of the car is calculated based on its age and current market value. That is the reason why insurance companies charge more premiums on new and branded four-wheelers.
Conversely, the used car will get depreciated over the years, and thus companies will quote less premium for it.
However, you should bear a few things in mind while purchasing a pre-owned car. Firstly, you should make sure that the policy of your four-wheeler is now under your name. And lastly, we would recommend you to read the claim history accurately.
Save in registration and other charges
Along with car insurance, one more thing that costs more in a brand-new car is the registration fees. The state charges a fee to register a four-wheeler, imposed on its transaction price. Besides this, you also need to pay road tax and RTO charges to the government.
You do not need to shell out money for the extra charges in the second-hand car as the first owner has already paid it. So, you can easily spin around your favourite car without investing in all these fees.
More options to choose from
If you require plenty of options to choose your car, then giving the nod to the used car option is the best bet. On top of that, you’ll get it in your budget.
On the flip side, purchasing a new car means getting all kinds of restrictions, as they will be available in just a few models. You could like the exterior of some cars but not their features and vice-versa.
If we go into details, then the used car market will have a series of options like old Chevy Colorados, Toyota Tacomas, Ford Rangers, etc. No matter you want to buy an older model or a new, second-hand car market will make your purchase a memorable one.
Fewer add-on installations
After purchasing a new car, many owners install add-ons like windscreens, alloy wheels, spoilers, etc. All of these forces you to hand over a massive amount to the mechanic. That’s not the exact case with the used cars. You can buy a used car in which accessories are pre-installed at no added cost.
Some car owners or third-party agents also apply new paint to the car to add to its looks and get the best deal. You only need to make sure that it has a car coating to protect the paint. If not, then give preference to ceramic coating (also know what it is) to build a lasting protective layer.
Saves the environment
All this while, we were talking about an individual’s benefits. But, opting for purchasing a used car would also save our environment. Besides saving money, a second-hand four-wheeler will help you to reduce the carbon footprint.
Also, you will lessen the carbon dioxide produced during the manufacturing of four-wheelers.
All in all, you are eradicating the two biggest enemies of increasing pollution, also minimising the impact on the environment. In a nutshell, you will be taking a step ahead of making a change by being the change.
Keeping peace of mind is mandatory!
Choosing the best second-hand car for yourself could be tricky. Your part of the mind will be sailing towards the old thinking; purchasing a pre-owned four-wheeler is like a roll of the dice.
There is no doubt your peace of mind is mandatory. For that, you should buy the car from reliable sources after checking their report history.
Last but not least, it is judicious to take a test drive and check it with a mechanic before locking the deal.
Olivia Robinson , a professional writer and blogger by profession. I enjoy spending time writing on various niches; especially on automotive category. I always strive to provide users with useful and informative articles in a readable format. Follow me on Twitter, LinkedIn and Pinterest.