What Makes Used Cars More Affordable?
Often, the 'value for money' offered by second-hand cars makes them a preferred choice among budget-conscious car buyers. But have you ever wondered why used cars look the way they do? Well, here are 5 reasons why buying second hand cars is a great value proposition: -
- Easy to Upgrade
- Slower Depreciation
- Used Cars are a lot more Reasonable To Buy
- Lower Insurance Costs
- Easy Availability of Spares
When buying a used car, one can easily upgrade to a segment above and opt for a slightly older car model in the same price bracket. Despite the high mileage (kilometres driven) on the odometer, such used cars offer a better value proposition. For example, you might get a decent music system with USB, Bluetooth and AUX, as well as safety features like airbags, ABS and reverse parking sensors with less than 4 second-hand cars. - 5 years old.
Depreciation affects the value of all cars. However, the rate of depreciation of second-hand cars is much lower than that of new cars. In most cases, the value of the car will have already depreciated so much that by the time it is repurchased, it will have come out of the steepest part of its depreciation, i.e. 20%-25% of the sale value. Also, cars depreciate in value after the first 3 years from their prime, meaning that even after buying a used car and keeping it for a few years, you can still sell your second-hand car at a competitive price.
One of the biggest reasons that second-hand cars are more affordable is that they are available at a much lower price than new cars. Used cars witness a 15% to 50% depreciation in 1 to 5 years, which makes them affordable.
Another factor that contributes to lower operating costs when you buy second-hand cars is lower insurance costs. For used cars, usually after a certain number of years, the minimum insurance premium is 30%-40% lower depending on the age of the car. The insurance premium is usually calculated according to the depreciation of the car at the time of sale or purchase, resulting in lower car insurance.
One of the best advantages of owning a second hand car is that spare parts are readily available and widely distributed. This makes car servicing and maintenance relatively hassle-free.
As the used car market in India grows and matures, so has the way we buy and sell used cars. With the increasing availability of certified used cars and many useful benefits, second hand cars are getting more preference than ever.
At Heinz Motors, you can buy certified used cars with warranty and free service benefits and enjoy a car buying experience similar to buying a new car. Explore the wide range of used cars at Heinz Motors, digitally appraised at 376 checkpoints, with reasonable prices, exemplary services and convenient processes for both buyers and sellers.