Very often, the ‘value for money’ quotient offered by second-hand cars makes them a preferred choice among budget-conscious car buyers. But have you ever wondered why used cars are perceived that way? Well, here are 5 reasons that make buying second-hand cars a great value proposition: -
1. Used Cars are a lot more Affordable To Buy
One of the biggest reasons why second-hand cars are more affordable is simply because they are available at significantly lower prices than new cars. Used cars characteristically witness price drops ranging from 15% to 50% in a span of 1 to 5 years that make them affordable.
2. Slower Depreciation
Depreciation affects the value of all cars. However, the rate of depreciation for second-hand cars is much slower than that of new cars. In most cases, the car’s price would have already undergone major depreciation, and by the time it is re-purchased, it would have come out of the steepest part of its depreciation curve, i.e. 20%-25% of the sale value. Also, cars depreciate way less after the first 3 years than in their prime, which means that after purchasing a used car and keeping it for a few years, you will still be able to sell your second-hand car at a competitive price.
3. Easy to Upgrade
While buying a used car, you can easily upgrade to a segment above and opt for a slightly older car model in the same price bracket. Even with higher mileage (kms driven) on the odometer, such used cars provide a superior value proposition. For instance, you might be able to get features such as a decent music system with USB, Bluetooth, and AUX, as well as safety features such as airbags, ABS, and reverse parking sensors with second-hand cars under 2 lakhs that are 4-5 years old.
4. Lower Insurance Costs
Another factor that results in lower running costs when you buy second-hand cars is the reduced insurance cost. Used cars, typically after certain years in age, have lower insurance premiums by as much as 30%-40% since it reduces with the age of the car. The insurance premium is usually calculated in accordance with the depreciation of the car at the time of sale or purchase, resulting in cheap car insurance.
5. Easy Availability of Spares
One of the best benefits of owning a second-hand car is that spare parts are easily available and widely circulated. This makes the servicing and maintenance of the car relatively hassle-free.
With the used car market growing and maturing in India, the way we buy and sell used cars has also evolved. With the growing availability of certified used cars and a host of useful benefits, second hand cars are seeing greater preference now more than ever.
At True Value, you can buy certified used cars with warranty and free service benefits, and enjoy a car- buying experience that’s akin to buying a new car. Explore the wide range of used cars at True Value that are digitally evaluated on 376 checkpoints, along with fair prices, exemplary services and convenient processes for the buyer and sellers.