Buying a car is still a luxury for many in this fast-paced world where every month a new car is being launched. Still, there are people who save penny by penny every month and could save only the amount enough for down payment or buy an old car if they don’t want to get trapped into EMI business.
Well, the ideal situation is to buy a new car as it is newly manufactured and comes with a warranty. So if you plan to use a car for more than five years than a new car is the best option. But if the budget is limited then get your hands on a second-hand car. So what are the factors to keep in mind before investing in a second-hand car?
- Price Quotient: Obviously the price of the old car is less than the new one. It is said that once the car is out of the warehouse and on the roads every mile it is driven the value of the car depreciates. Yes, it is a fixed asset but its value depreciates; so there are chances that if you opt for a used car then you might get the car at half the price.
- Inexpensive Insurance: While getting a new car extra costs like insurance add up to the cost of the car. Many used cars are not insured and if you want to get the car insured it won’t cost you as much as the new car. So while buying an old car research and get all the details of the vehicle whether it is insured or not; if yes then what is the expiry date of the insurance and if it’s not insured then how much amount will be spent on insurance annually. Check out discounts available by various insurance companies that provide car insurance at By Discount Codes.
- Depreciation Value: Every car gets depreciated over time but many are not aware that certain car models tend to depreciate up to 40% in the first year only due to scratches or dents. Also, being the second owner of the car the value will get that depreciated as it got with the first owner. So no need to worry about the cost of the car when it is sold the second time by you and buy the car if it is in your budget.
- Less Remodelling cost: If you want to add some accessories to the car or upgrade the car to higher models by adding some parts then it can be at a cheaper rate. There are many private agencies that offer remodeling services at discounted rate. You can avail Euro Car Parts discount code and make the car look as good as new without spending a fortune.
To conclude buying a new or old car is entirely your personal decision but these are some important factors that should keep in mind before buying the old car.