Purchasing a car is one of the huge financial decisions. Several potential car buyers are opting for second-hand cars. As per a report by IndianBlueBook, the used car market is estimated at 3.3 million units per year, which is 20% more than the new car segment. It is commonly seen that first-time car buyers often opt for pre-owned vehicles.
Here are four factors that drive the demand for pre-owned vehicles in the country.
Pre-owned vehicles are available at lower prices when compared to new cars. For example, a five-year-old base model of Hyundai i10 or Maruti Swift, which isdriven forless than 60,000 kilometers, may be purchased at around INR 3 lakh as per CarDekho.com’s price index. This means buyers may be able to reduce their purchase price by half, making it affordable for them to buy a four-wheeler.
- Latest models
Historically, individuals often used their cars for long periods ranging from 10 to12 years. However, most people today change their four-wheelers within five to six years. This means a buyer is able to buy ‘as good as new’ vehicle at a lower cost.
- Certified dealers
These days, the used car segment is getting more organized with several certified dealers offering second-hand cars. Furthermore, online resources that provide comprehensive information related to such cars are used by potential buyers to make accurate decisions.
- Easy finance
Financial institutions offer quick and easy used car finance, thereby increasing the demand for pre-owned vehicles. Most of the leading non-banking financial companies (NBFCs) and banks provide loans to enable buyers to purchase second-hand vehicles. The entire procedure to avail of these loans is quick and simple. Buyers need to submit a few documents along with their application form. Thereafter, lenders sanction the loan and disburse the amount within a few days. This enables individuals to drive home their dream car without any delays. Several dealers also provide finance at affordable used car loan interest rates, thereby driving demand for pre-owned vehicles.
Buying a second-hand car has several benefits. However, buyers must consider some factors before making their decision. Purchasing a certified car with an extended warranty is advisable. This ensures the vehicle is in good condition and also makes it easier for individuals to avail of a used car loan. Selecting a reliable and experienced dealer is also recommended for maximum benefits.
Click here to know more about used car loans.