What is a second hand car? A second hand car is a used car. A lot of car freaks are interested in buying a second hand car over a new car, as the former comes at a cheaper price. Second hand car dealers have increased and so have the number of buyers over the last decade. The cost of a new car is increasing each day, which is making first time car buyers look out for other options. Not everyone can afford to spend big money on their so called ‘dream car’, and a lot of buyers are choosing second hand cars which have the same features of a new car, except they are not the first owners of the car. These cars also come at an affordable price.
It really makes sense when someone buys a second hand car, which has the same features of a new car, but costs less. If you are commuting by public transport and consider buying a vehicle of your own, then it would be better if you choose a second hand car over a new bike, as driving a car is easier and more comfortable when compared to riding a bike.
Second Hand Car Growth in India: It is estimated that the market size of second hand cars is 1.2 times higher than that of new cars in India. Used car market has seen rapid growth of 30-35% a year in the last 5 years. Car manufacturing companies like Maruti Suzuki, Mahindra and Mahindra, and Hyundai have certified used cars for sale at their official outlets. OLX and Quickr have boosted the second hand car markets as they has given buyers the option of getting in touch with sellers directly, which means buyers have no need to pay commissions to middlemen/brokers.
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1) Affordable prices: Second hand cars come at a cheaper price when compared to new cars resulting in less investment. If you are a frequent changer of cars, then buying second hand cars would make sense. Consider the following example. A brand new car would have a lot of charges on top of the ex-showroom price like RTO charges, essential kit charge, extended warranty charges, road tax and so on. These charges would be around Rs 50,000 to Rs 75,000. It is very foolish to buy new cars each time, if you are a frequent car changer, as you have to shell out more on top of the ex-showroom price.
2) Cars are certified and sold at the company outlets: A lot of buyers tend to hesitate when it comes to buying a second hand car. It is quite understandable as you never know in what conditions the car is. You need not worry on the car’s condition as they are certified by the manufacturer and are sold at the company outlets. Car manufacturing companies like Maruti Suzuki, Mahindra, and Hyundai and so on, have certified used cars on sale at their official outlets. Although we get better deals on second hand cars on OLX and Quickr, we don’t know if the cars sold are in proper condition or not, hence, it is advisable to buy second hand cars directly from the manufacturing companies as they provide Best Buying Options and Certified Vehicles.
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3) Depreciation benefits: Depreciation on cars is defined as the difference between the amount spent on buying a vehicle and the amount that would be received on selling the same vehicle. You find that a used car (one to two years old), has better value than a brand new one.
4) Last longer: The modern cars are built to last longer and hence it does make sense to buy a used car, as you would save a lot on service charges. Insurance charges would be high for a brand new car straight out of the showroom. Insurance premiums are low in case of a second hand car. Considering this, it is better to buy a used car over a brand new car if you change your cars often.
5) Easy processing of loan application: Getting a loan sanctioned on buying a second hand car is easy and hassle free. Banks and private firms offer loans on second hand cars. Banks offer loans on vehicles which are less than 5 year old, while private firms might extend this to vehicles which are not more than 10 year old. Loan approval doesn’t take long and the rate of interest is low.
6) Lower registration fee: Registration fee is charged as a certain percentage of the transacted amount. So, buying a used car would reduce the registration fee considerably. This is the most important reason why frequent car changers always prefer second hand cars over brand new cars.
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7) Skipping the initial pain of maintenance: One big headache of driving a brand new car is the engine break-in period. You should not exceed the specified RPM to ensure long run of the engine. You should not accelerate quickly for the first few hundred kilometers. You would not have an enjoyable long drive in the first few months, with your brand new car. Buying a second hand car would not have any of the above mentioned restrictions. You can go on long drives as soon as you buy the car and you can drive at high speeds without having to worry on the engine break-in period.
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