5 Benefits of Buying Used Cars in Chennai - Car Loan Blog - Tata Capital

Top 5 Benefits of Buying Used Cars in Chennai

Mar 02, 2017

Chennai is known as the automobile capital of India. The city is also known as the 'Detroit of South Asia' for its automobile industry. Given the city's status, it is clear that Chennaites are passionate about cars. People in the city prefer used cars over new ones as they are affordable and are worth the price. Used cars offer many benefits besides affordability.

The following are the five benefits of purchasing used cars in Chennai.

  1. Poor Condition of Roads
    Private vehicles like cars are often damaged by poor quality roads in Chennai. Moreover, bikes cut across cars in traffic, causing accidents. Such accidents may cause scratches, dents and even extensive damage to your car. The cost to repair such damage is huge and may burn a large hole in your pocket. Experts would therefore advise buying used cars, as the value of these cars is lower. Hence, even if there are minor damages to your vehicle, you may not feel the pinch as much.
  2. Low Depreciation
    A brand new car begins to lose value the moment it is driven off the lot. New cars lose most of their value in the first few years. When you purchase a pre-owned vehicle, a huge portion of the depreciation has already taken place. Though the value of the car may still depreciate, it takes place at a slower rate.
  3. Low Insurance Cost
    Used cars are cheaper to insure. Insurance is calculated according to the value of the car. Used cars have lower values, and hence, the cost of insurance is lower. Second-hand cars also have lower registration fees. Registration fees are based on the transaction price of the vehicle. With lower transaction costs on used cars, registration costs are also lower.
  4. Availability of Certified Cars
    Chennaites perceive cars as an 'asset for life'. The market for used cars in the city has been innovative enough to cater to this perception. This gave rise to certified used cars and warranty plans. Certified used cars are those that are checked thoroughly for the condition of the car, number of previous owners, mileage, and the condition of the engine. A car that makes through this checklist receives the tag of a certified car.
  5. Good Financing Schemes
    There are numerous options for financing used cars in Chennai. You may either borrow from financial institutions like banks or lending agencies or through your dealer. Local dealers have financing options through one of their affiliates. They provide easy loan processing options and flexible EMI plans.

It definitely makes financial sense to buy a pre-owned car with used car loan. Apart from low upfront costs, you pay less for registration and insurance. Gone are the days when old cars meant worn-out exteriors and cars in poor condition. Used cars these days are reliable and are in good mechanical shape. Hence, it is advisable to buy second-hand cars as they offer value for the price paid.