When you are considering buying a used car, there are many smart reasons. You can save your money and get the same satisfaction as a new car. If you opt the car from trusty dealers other than private sellers you will be having more chances of getting dealer certified cars.
1. Major Depreciation already occurred
When buying a new car a massive depreciation smashes as soon as you leave the showroom. The moment you ride out of the Showroom the value of the car has been changed to USED CAR. Even though you have ridden only a few miles or used for a few days or weeks, it affects its value. 12% to 15% depreciation will smash on the vehicle just after few days. This is the case for every single new vehicle in the world, but beyond that, depreciation can vary quite dramatically over the months and years to follow. Your car’s value decreases around 20% to 30% by the end of the first year. From year two to six, depreciation ranges from 15% to 18% per year, according to recent data from Black Book, which tracks used-car pricing. As a rule of thumb, in five years, cars lose 60% or more of their initial value. But to be notified that 20% to 30% value is depreciated in the first year. So while buying a used car the major depreciation has happened already, the depreciation after you buy the vehicle is low comparatively after the first 1-2 years.
2. Buying a used car saves you money:
On average, used car prices are almost 35% to50% lower than new cars! In that way you are saving money directly but other than that you require less finance and may require only less tenure and hence you can save on interest and financing fees to be paid.
3. Lower Insurance Premiums
The Insured Value (IDV) will be high for the new vehicle and the premium for the insurance will be very high although they will not cover 100% of the value of the new vehicle. So in order to cover the difference in the compensation and actual value of the vehicle, you may require a GAP Insurance to cover the difference between what you paid for a new vehicle and what its depreciated value. GAP insurance is good especially when your car becomes a total loss but you need to pay an extra high premium for the GAP insurance. But for the used vehicle the Value of the vehicle and the insured amount will not be having much difference and hence you don’t have to take a GAP Insurance which will save you money.
4. Certified Cars from Trusted Dealer
A certified car comes with a complete inspection that repairs any damaged or worn parts before being offered for sale. Certain dealers will give certain duration of the warranty for certified cars. This will ensure peace of mind for the customers. The customer will be more confident as all the repairs and proper inspection of the vehicle has been done by the dealer itself.
A marginally used car with assurance from an auto platform like Royal Car Center can help you save money without compromising on quality and efficiency.