Despite the growth of brand-new car market, the used-car-market has constantly been more invaluable with an abundance of vehicles sold every year. Why so? Across the world, the value of used cars is flourishing rapidly, valued at 250 billion USD in 2020 alone, the market is anticipated to reach 403 billion USD by 2026 (Source). Reality speaks for itself that it might take some time for the new-car-market to have some effect on the ever-growing used-car-market.
The trust deficit in the used-car-market that was prevailing in some nations is now fading away due to the breakthrough of organized competitors in the market. Also, digitalization in the market is drawing more customers due to various resourceful facilities. Tech-savvy players are providing smooth shipments, car specifications, performance reports, digitalized test drives, and much more. Majority of people, even if they can afford a brand-new car are bewildered when it comes to choosing between a new or used car. Want to learn why? Its due to the key benefits that we are about to share with you that continue to add to the growing demand of pre-owned cars.
5 Key Benefits of Buying a Used Car
The foremost advantage of buying a used car is less price. The price of used cars tends to be 50% less than brand-new ones. The depreciation factor will work in your favor while buying a used car as the prices suffer a huge drop. Apart from that, they won’t saddle you in with hidden costs that are not mentioned on the price tag up front.
- Less Depreciation
Except for rare cases, majority brand new cars lose their value in their early life. That is why buying new cars is not a good investment strategy. Their value can be depreciated up to 40-50% within the first, three (03) years. So don’t expect to sell your brand-new car for nearly what you paid for it. On the contrary, being a used car owner, you won’t face that pitfall. Your used car will not disappoint you when you decide to resell it. Therefore, it’s considered as a smart investment.
- Low Insurance Rates
Your car’s insurance depends upon your car’s value. Therefore, brand-new models come with expensive insurance rates. So, if you purchase a used car, you can skip the collision coverage (although we would never recommend skipping on insurance altogether). Also, with depreciation already in-place, used cars won’t require gap insurance to begin with.
Used cars and certified pre-owned cars go through a detailed inspection and often come with extended warranties as most of them are still under factory warranty. Several used cars have two (02) to five (05) years of warranty left from which you can benefit greatly.
As mentioned above, used cars aren’t pricey. This relative advantage of being less expensive will allow you to buy a latest model for the fraction of the original price tag. This means you’ll have a wide variety of options that meet your budget constraints. You even have the opportunity to shop a model you prefer that’s no longer in production!
Although it’s all up to you to choose between a new or a used car but going for a smarter option will never disappoint you in the longer run.