When you are buying a used car, you are concerned about quality and features, but obviously, you have one eye on the price as well. Because if cost was not a consideration, you would not be buying a used car in the first place, would you?
Thus for you a used car must be able to attain that fine balance between cost and benefits. But then, how cheap can a used car be?
In India a used car can be really cheap. The moment a new car is driven out of the showroom, it loses 20% of its value, which is the norm in India. Though this is not beneficial for the car owner, it is really good news for you if you are looking to buy used cars. Then add to that a rate of depreciation ranging between 7-12% per year and you have a substantial drop in the value of a new car within a year or two.
This means that if you are buying a car which has been previously owned for more than a year you can be expected to pay only about two-thirds of the original price. That’s cheap isn’t it? But wait, that’s not all.
The price of a used car can also decrease based on the number of kilometers it has run. So if it has clocked a few thousand kilometers within a year or two, you’ll get an even greater rate of discount.
But if you are looking for a dirt cheap model, you should probably stay away from the really popular car models in India. This is because they command a higher rate even if they are used. Some popular hatchbacks will cost you only a few thousand rupees less than their brand new versions, even if you buy them as previously owned cars.
Now that you know how cheap used cars can be, let’s look into why you should buy a used car.. and then maybe you can buy yours? 