Though the rural areas of India still show a lesser demand for cars, the urban life has become less viable without having own cars. The higher affordability and huge availability of pre-owned cars have brought a boom in the used car market in India. The market for second hand cars has certainly grown leaps and bounds, especially for the city commuters.
According to Statista, the market size of pre-owned cars was 3.6 million in FY2017, which increased to 4 million in FY2019. As per the data given by ET Auto, the pre-owned car market recorded sales of 4.4 million units in FY2020. Further, the demand for second-hand cars is projected at a growth of 15.12% during the period of 2020-2025.
The numbers achieved in the last few years clearly shows the upward growth prediction is true and the used car market is surely flourishing in an inconceivable manner. The adoptability rate of used cars is immensely high among city commuters and they have some valid reasons for it.
Here are some of the ways how the used car market is helping the city commuters:
- Facilitates Savings and Affordability
The primary benefits of opting for a used car are it is a lot more affordable and multiples your savings balance. In addition to this, you can even opt for a pre-owned car of your preference & model at a comparatively lesser price as compared to the same model of the new car.
For instance, you can ideally purchase a used car under 3 to 5 lakhs while the new car would cost you around Rs. 6-8 lakhs depending on the variant you opt for.
- Minimizes the Vehicle Depreciation
You should keep in mind that the value of the new car starts depreciating once it is driven out of the showroom. This arguably means 50% of its value is already depreciated in a span of 2-3 years.
The matter of fact is that cars lose their value over a period of time and by the time you purchase a second-hand car, it would have already suffered maximum depreciation. This will help you to purchase the car at a much lower price and the further depreciation chances will minimize.
- No Registration Fees
When you purchase a new car, you need to pay many taxes to the government such as road taxes, one-time registration fees, and other RTO charges that help you out in increasing the on-road price of the vehicle.
But, if you opt for a pre-owned car, you won’t have to pay these taxes, as it would have been paid by the first vehicle owner. Hence, you would get complete value for your purchase. Moreover, it won’t dig a hole in your pocket while taking your favorite car for a spin.
You just need to ensure that all papers are complete while making a purchase and you get a complete transfer of ownership.
- Full Warranty and Assurance of the Vehicle
Some time back, second-hand cars were considered more or less to be junk. But things have improved over the past few years after the entry of organized players in the market.
You can now easily find several dealers who can offer you full assurance and warranty.
For instance, if you purchase Maruti Suzuki used cars, then online dealers would completely inspect the vehicle before handing it over to you. It would be a blunder to accept a second hand car without full inspection done.
- Pre-Installed Accessories
You can easily find several vehicle owners who tend to install accessories in their cars such as spoilers, windscreens, bumper guards, etc. Some add these as necessity and some to show off. Whatever be the reason, you get the used car along with these accessories. You can easily find used cars for sale having pre-installed accessories without having to pay any extra cost.
- Reduces Car Insurance Premiums
The insurance premium is calculated based on the market value of the car. Thus, you will have to pay a high premium if you purchase a brand new car.
On the contrary, if you think about purchasing second hand cars, you would have to pay a reduced premium as the value of the vehicle depreciates over time.
- Contributes to the Environment
The used car market very well contributes to the society as it helps in reducing the carbon footprint. It is commonly seen that carbon dioxide is produced during the manufacturing and shipping process.
Thus, pre-owned cars help out in eliminating the two polluting factors, and thus the impact on the environment is minimized.
- Lowers the Loan Amount
If you purchase Maruti Suzuki used car, then you can preferably get that at a cheaper price as compared to the new car price. Thus, you will have to apply for a lower amount of loan and will be liable to pay less interest on it.
- Helps to Upgrade in Variant
If you go on to purchase a new car, then you would notice that there is a difference in the price of the two variants of a particular car. On the other hand, the price of the variants in the used car market does not differ a lot. Thus, you can purchase second hand Hyundai cars of any variant at the same price point.
Final Verdict
Day to day commuting from home to office, a short trip to outskirts, a long drive experience or an emergency drive, will always be a smooth ride, if you own a car. Apart from relishing the felling of belongingness, a city commuter can always enjoy the above-mentioned benefits of the used car market. So, if you are a city dweller and still own a car, after reading this article you will surely be eager to give a sneak peek to the pre-owned car market of India for sure.
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