The used car market has become a fertile place with varied options. Thanks to the frequent car launches, model updates and easy access to financing. Although Indians love cars, quite a lot of them choose to avoid buying new cars because of its hefty price tags and quick depreciation. But the love for cars pushes them to look at the other options available to them in used hand cars. Therefore, it makes perfect sense to those people who love a good bargain and a good car to apply for a second-hand car loan to buy a second-hand car.
7 Top Reasons to Buy a Used Car
- Depreciates at a slower rateIf you think buying a new car is an investment, you are sadly mistaken. A new car starts depreciating the moment you drive it off the dealership. The depreciation continues, and the car loses half its value within three years of purchase. Although the new car comes with some perks such as warranties, free servicing for a year, and low financing, it cannot withstand the law of depreciation. On the other hand, a used car depreciates at a slower pace as compared to a brand-new car. When you are buying a used car, you are already purchasing it at its depreciated price.
- Offers good variety within your budget
Every year, quite a number of new car models are launched, and a few cars undergo updates. There is quite a lot of options available in the new car market, but not quite as much as what options the used car market has to offer. Whatever your choice in a car is – minivan, SUV, sedan, hatchback, etc., the used car market has more options than the new car market.
- Low insurance costs
As the used car is of a lesser value than a new car, the cost to insure a used car is lesser. The annual insurance premium is lower because the car is already depreciated.
- Assures reliability
The used cars that are sold by dealers come with car history and data. You have the information such as the number of previous owners, previous registration status (personal, lease, etc.), mileage validation, etc. You have easy access to all the information, thus making it easier for you to make a right decision.
- Low registration fees
You can knock off a substantial amount of registration fee and save money if you choose to buy a second-hand car. Used cars are also subjected to discounted taxes. Ensure that you check the registration fees for yourself before making the purchase.
- Saves money
Buying a used car can save you some serious money. You end up paying a lot less than the original value of the car. However, the value depends on the year of manufacture and how many kilometers it has run.
- Financing is easy, and the rates are favorable
While it is true that you pay a higher interest rate on a second-hand car loan as compared to a loan for a new vehicle, but online lending platforms like MoneyTap has made financing easy for you by removing the hassles that exist with traditional lenders or banks and providing you with a second-hand car loans on EMI through its personal line of credit. The eligibility is confirmed within seconds once you register on the app, and the credit line is approved and disbursed within minutes. The personal credit line can be anything between ₹35,0000 up to ₹ 5 Lakh that is available to you at a low interest rate of 1.08% per month, which is much lower than what you would pay for a second-hand car loan with a traditional bank.
However, you need to be sure that you know what you’re looking for in a car, what compromises you are willing to make, and how you plan on checking the quality of the car. Also, remember to ask for all the necessary paperwork and before you finalize the deal, don’t forget to test drive.
So, while you are hunting for the best bargain in second-hand cars, MoneyTap is the good place to keep your credit line ready for the purchase. All you have to do is download the app and apply. Get MoneyTap now!