Used Car

Is It Beneficial To Finance Used Cars from Dealers?

Owning a car is a dream most people have but at the same time a luxury they can’t afford. This is because a car, even a small model like an Alto starts from about Rs. 4 lakhs. This initial price combined with the taxes, insurances and the quick depreciation, ends up costing a hefty amount. However, for people dreaming to buy a car has another option available to them which is purchasing second-hand or used cars.

Why Is It Beneficial?

Used Car

Used cars or second-hand cars seem like good alternatives to buying new cars whose value depreciates very quickly. The reasons this can be a viable option can be summarized as follows:

  • The luxury of owning a car at prices which are lower.
  • Get better cars with more advanced features (like more airbags, better stereos, and comfortable seating) than smaller and cheaper unused/new cars.
  • It is cost-effective also because it saves the buyer, the payment of first-time taxes and insurance overhead expenses.
  • Depreciation of the vehicle value is worse in the initial years. So buying used cars saves the buyer that depreciation cost. In fact, once a car has changed hands, its ‘resale value’ will depreciate very slowly.
  • Though it is a used car it still has a road presence and a quicker way of traveling. It provides all the comforts that an unused car would have provided.
  • Buying used cars is becoming quite common these days. So there are a lot of options available for buyers with all kinds of models and colors.
  • There is a scope for negotiating the prices depending upon the condition of the car, which is practically not possible in new car dealerships.
  • It is also a better option in case you like to change your car frequently, as it is cheaper than unused cars.

Considering the following reasons, financing a used car doesn’t seem like a very bad idea and in most cases an even better idea than buying a new car.

Precautions to Be Taken

However, while buying a used car, there are certain precautions which must be taken:

Used Car
  • Buy your car only from a recognized and trustworthy dealer to ensure credibility.
  • Make a proper inspection of the car before buying it. Also, negotiate prices for the damages and repairs.
  • Update all the paperwork and contracts for the purchase of the car.

Buying an unused car from dealers is quite beneficial for those who dream of owning a car. It is a great way of owning a car without causing a hole in your wallet. Plus it makes much more sense via a financial perspective.

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