The COVID-19 Pandemic has made everyone stand up and take notice of Used Cars. With individuals and families being cautious about availing public transporttion facilities, the demand for used cars has skyrocketed. The recent semi-conductor chip shortage also meant that manufacturers are facing delays in the production of new cars.
For a long time, people had not been fond of buying cars for multiple reasons. It did not reflect success, was seen as some form of a compromise, and found favor only among takers that were just starting to learn how to drive. However, financial experts and analysts have always been categorical in terms of how used cars are a much better investment than new ones.
If you are someone that is looking to purchase a used car for sale from ThinkOne, this article is perfect for you. In this article, we are going to look at seven major reasons why buying a used car is a great investment in the post-pandemic period. So, sit back, relax and let us help you take your life’s best financial decision.
List of 7 Major Reasons why Buying a Used Car is a Great Investment
1. The Initial Pricing and Costs-
The first thing that directly affects a car buyer is the initial costs involved. When you are buying a new car, you are spending a lot of money even when you are opting for finance options. Compare the same in terms of used cars, and you are looking at nearly a 50% decrease in the costs. In the economic uncertain times that we live in, this is a major price difference.
2. The Rate of Depreciation-
If financial experts are to be believed, a new car loses 20% of its value as soon as it leaves the car showroom. This means that the year-on-year depreciation rate will skyrocket considerably. If you look at used cars, the rate of depreciation is far lower. When you buy a used car, the first owner of the vehicle would have already taken the major hit. This is a great financial benefit.
3. The Possibility of Better Deals and Discounts-
Source: radiat.net
When you walk into a car showroom to buy a new car, the dealer will only be able to give you a discount worth pennies. Compare the same to used cars and you are looking at every dealer offering personalized deals. This means that you always stand the chance to get impossible discounts and deals. Do not be surprised if a dealer throws in 5 free services on used cars!
4. The Reliability Factor-
Many people dreaded used cars simply because they were not as reliable as new ones. However, in the past decade, modern cars have become far more reliable and come with a longer lifespan. This means that you do not have to worry about your used car going bad within a couple of years. In fact, if you pay attention to service intervals, you will be able to get a great value.
5. The Options that are Available in the Market-
One major trend that is on the rise is Leasing. Companies often lease vehicles for their executives for three-year periods. The vehicles are in great condition which are then sold to used car dealerships. This means that as a consumer, you have a ton of options to choose from. You are spoilt for choice in terms of the make, model, and mileage on the used cars.
6. The Insurance Costs are Remarkably Lower-
One common benefit that used car owners can hope to experience is the lower insurance costs. Since the IDV on used cars is a lot lower as compared to new cars, you are going to benefit from a lot of savings. Over a period of three to five years, you can expect to save in the thousands as far as insurance costs are concerned. This is something that is of great value.
7. The Promise of Saving Your Hard-Earned Cash-
Source: wgntv.com
There is a reason why individuals that can afford new cars are opting for used ones instead. They are using all the cash they save and investing it in appreciating assets. A car is a depreciating asset unlike real estate, stocks or precious metals. Buying a used car allows you to save on your hard-earned cash and invest it in something that is sure to rise in value.
The Final Takeaway
In this resource, we have tried to list down seven major reasons why buying a used car can be a great investment. You need to think beyond non-tangible feelings and emotions that are usually associated when it comes to buying a used car.
Instead, try to rationally understand why this is such a great financial proposition. If you would like us to assist you in any way, or want us to clear any of your doubts regarding buying a used car, please let us know in the comments below.
