The second most expensive expenditure that a person makes after buying a home is a car. Most of the people have a special affinity towards expensive cars, but the budget constraints don’t allow them to splurge. They can actually look into the option of buying used cars. This way, they can experience the joy of having their dream car and that too in their budget.
Here are some of the benefits of going for a second-hand car:
- As soon as you drive the new car off the dealer’s showroom, it depreciates drastically in value. The car depreciates by as much as 40% in the first year itself and more if it is a high-end model. The same does not hold good for used cars. They do depreciate in value, but the value does not erode the way it does with first-hand buys.
- The other benefit of buying used cars is that the road tax of the state is already paid for a life time. Suppose you are going for used cars in Mumbai for buy then the first owner must have already paid the road tax for the state of Maharashtra and hence if you are using the car in the same state you need not worry about it, which is a big saving in monetary terms.
- The insurance of new car is a big expense, but the same comes down as the years pass. Thus, if you are going for a second-hand car, this is again a big saving.
- The dealers often install additional features like anti-rust coating, protective film etc. that costs a bomb if the first-hand owner gets it done from them. They, however, do not add a single penny to the resale value. If you buy a second-hand car, the chances are you might already get them installed by the previous owner, else if you want, you can get them installed from a local garage at a much lower cost.
Thus, if you are looking for value for money, it makes more sense to go for a second-hand car. The numerous benefits associated with it will let you get a 2012 Porsche at the price of a 2017 Honda.