There are countless incredible reasons due to which a person decides to buy a used car. Ample selection and improved reliability of the older cars are just a few, but the most important benefit of all for the used car buyers is affordability.
The value of a new car drops as soon as you drive it out of the dealership lot. On all the mainstream vehicles, you need to expect the price of your new car fall to at least 70% of its original value in the first two years only. You can consult the used car value guides to know your new model’s future worth. Even leasing guides are good source to know the price even if your intentions are to buy only. Payments for lease are also calculated based on resale or residual values.
Used cars are generally a better buying option as there are a lot of programs for certified pre-owned vehicles or CPOs. Earlier, this was just for luxury brands like Lexus and Mercedes-Benz, but now most manufacturers have these programs. In big cities like Mumbai, there are multi-brand used car sellers as well. You can purchase quality certified used cars in Mumbai from these sellers who ensure trust and transparency in between the previous owner and the new potential owner.
A new car purchase is definitely going to be a more expensive buy as compared to buying a used one. The initial costs for a new car are also really high, unless you plan to lease it and get some investment back. Even the financial institutions require at least 10 percent down payments on a loan for a new car, but it generally helps to add a little more. In case you pay less upfront money, the payment you would need to pay monthly would be higher. There are two other key factors when it comes to buying a used car: New Car Depreciation and Certification Programs.
Benefits of Buying a CPO Car:
- Manufacturers generally make sure that these used cars have no major damage history and good low mileage cars.
- The inspection of these cars is rigid ensuring professional scrutiny.
- These vehicles generally have warranty extending original factory warranty.
- Special financing is also available on CPO vehicles at lower than new car loan rates
Although you pay more for a CPO as compared to a typical used car, this higher price is worth it as the buyers receive coverage, peace of mind and extra attention from the certifying authority.