Pre-owned cars are easy on the wallet

Mumbai:While the number of cars on Indian roads has doubled or even tripled over a few years, there are a large number of people for whom buying a car is still difficult. On the other hand, the pre-owned car sector is growing in its popularity with quality vehicles and trustworthy dealers in the market, unlike yesteryears, as many of today’s youngsters with high disposable incomes keep changing their vehicle every two to four years.

The growing popularity of the used car market is also testimony to the fact that buyers understand this and try their hand in owning a dream car at lower rates. Also, as many youngsters keep changing their vehicle model, many opt for the numerous options available in the used car market at bargain prices instead of going for a brand new model that may come at a much higher price.

After all, the automobile is a depreciating asset. Apart from these, the availability of loans for used cars has been one of the main factors that is increasing the quantum of sales of pre-owned car.

One of the biggest advantages of buying a used car is that it allows buyers to get a good deal. Rather than buying a new car of medium range at a higher price, users can get a top model used car at almost identical pricing. This effectively turns out to be a value for money deal especially when the car is approved to be authentic with no dark underbellies of botched up engine work or malfunctioning.

For example, a one-year-old Hyundai Verna can be found selling close to Rs 5 lakh in the pre-owned car market whereas the price for a new model is well above Rs 7 lakh. If the user is having a limited budget, he or she would be forced to look at a hatchback instead of a sedan. The used car market is a boon to people seeking to buy better alternatives at their price point.

The pre-owned car market always had a sense of uncertainty in the past as the sector was highly unorganised. Most car sales happened through mutual trust and word of mouth publicity. This meant, only people known to the buyers were able to get good deals and know about the case history of the car and other buyers were left at the mercy of mechanics to guide them regarding the condition of the vehicle.

With increasing time and growing popularity of the used car market, most car makers have ventured into setting up pre-owned car certified centres that check cars before offering them for sale. This has brought in a sense of calmness in the mind of buyers about the quality of the car being sold. With quality vehicles approved by car makers and providing limited warranty and services in case of any malfunctioning, the pre-owned car market is growing from strength to strength.

Another important aspect that has helped the pre-owned car market is the easy availability of used car loans. Unlike previous days, a large number of public sector banks as well as private banks and non-banking financial companies offer loans for used cars. While interest rates for pre-owned vehicles are three to four per cent higher than those for new cars, the cost effectiveness and easy availability of car loans make it a viable option for the majority of buyers.