Top 5 Benefits of Buying a Second-Hand Car

Cars are considered a luxury asset. Buying a car, however, happens to be quite expensive. Taxes are imposed, and depreciation is charged on cars. Cars tend to lose around 40% of their value within the first year of use itself. These are a few reasons why some people prefer buying a second-hand car. You might think that second-hand cars are probably not in good condition and are not as great as a brand-new car. However, second-hand cars have a lot of benefits in comparison to brand new cars. You only need to take the time to find the right dealer for you.

A question still arises, how is a second-hand car better than a shiny, brand new car? Here are 5 benefits of availing a second-hand car loan over a new one.

1. More affordable prices

Second-hand cars have much more affordable prices in comparison to new ones. Whereas new cars could cost you a fortune, old cars happen to be cheaper just because they were used beforehand and have lost their value due to their previous owner’s use. So, they happen to be quite budget-friendly for those who cannot really afford to buy their dream cars due to the cars falling out of their budget range.

      2. Low rate of depreciation

As stated beforehand, new cars depreciate a lot in the first year of use. Nearly 40% of their value gets depreciated in the first year of usage. Second-hand cars do not depreciate as much as new ones do. This is because the highest depreciation in the car would have already occurred when its previous owner was using it.

     3. Annual registration fees are lower

The annual registration fees are usually based on the model of the car as well as its value. Typically, the rate of the fees is at its highest value during the first three years. This usually happens to level off after the first five years of the car’s use. So, if you buy a car that is at least three years old, you can save a lot of money since the annual registration fees will be lower for your car.

     4. Cheaper second-hand car loans

Buying a second-hand car is far much more beneficial because you have numerous, low-interest personal loan choices.

     5. No sales tax

Sales tax is mostly imposed on new cars. On the other hand, second-hand cars usually do not have any sales tax levied on them by the state laws. Thus, this also helps you save money that you would have had to spend otherwise while purchasing your cars.

Numerous dealers sell second-hand cars that are in great condition. All you need to do is check that they are a reliable business, and you can have your luxury car at a relatively low price.

Pre-approved offers are available on a variety of Bajaj Finserv products, including personal loans, home loans, and credit cards. By entering your name and contact information, you can check the offer for you.