The cost of buying a new car has significantly increased over the last few years. If you want to buy a car for yourself or your family, what should you do? Well, the most practical option is to buy a pre-owned car. When you buy a new car, you not only shell out a good sum of money but also run the risk of losing a good chunk of that to depreciation.
You see, the moment you drive a new car out of the showroom, its value depreciates. The same is not true for a pre-owned car. Here are some prominent reasons why you should consider buying a pre-owned car and car insurance also plays a major role in that decision.
1. Light on pocket
Buying a pre-owned car is more affordable than buying a brand-new car. If you look at the used car market, you can find some very good deals that can save you a lot of money. In some cases, a moderately used car might have a price tag that is half of what a new car retail at. Now that’s a steal.
2. Damages won’t worry you
A minor scratch on your new car can give you a sleepless night. On the other hand, if you opt for a pre-owned car those scratches or dents will not haunt you that much. Since you are not that worried about scratches, you can drive more freely.
3. Insurance premium
Car insurance premiums for a new car can be significantly higher than that of a pre-owned car. As the cost of replacement of parts and even the car is lower in the case of pre-owned cars, the car insurance premiums are lower as well.
4. Financing options
In the past, buyers usually faced issues while securing finance to buy used cars. People usually had to rely on personal loans or even credit cards to finance. However, there are a lot more options these days.
5. Lower depreciation
The value of a new car depreciates as much as 20% in the very first year. A new car with an on-road price of Rs. 10 lakhs could reduce to Rs. 8 lakhs. However, the rate of depreciation is lower for used cars.
6. Certified cars
Sellers these days do a lot of inspections on cars and offer a warranty as well. Thus, you no longer are gambling if you want to buy a used car. Certified cars can give you a lot of confidence in the buying process.
The used car market has grown considerably over the past few years. This leads to better circulation of money and thereby offers better economic stability.
8. Invest In other commodities
You stand to save considerably when buying a used car. You can invest this money in other important aspects such as your retirement or even higher education.
Should you decide to buy a pre-owned car, you can opt to buy car insurance online. Buying car insurance online will help you save even more on premiums and secure a policy that ticks all the right boxes. It is essential since you cannot legally drive without a car insurance policy.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.