Did you know that about 4 million used cars were bought in the year 2019 as opposed to the 3.6 million units of new vehicles? Surely, the purchase rate of brand new cars has slowed down owing to a variety of factors. In fact, new car sales were seen to be growing at a rate of 2.7% in 2019, which was the slowest observed in recent years. On the other hand, the rate of used car loans has seen a spike.
Are you wondering what drove the sales of pre-owned cars? Allow us to put this into perspective for you. One of the top benefits of used cars lies in their economic viability.
So, what do you think of owning a newly bought car vs owning a pre-owned vehicle in good condition and taking an international trip in it?
We are sure that many of you nodded your heads for the second option. The following section walks you through some more compelling arguments regarding why many people prefer investing in used cars.
Luxury at a great price
Choosing a used car implies that you will have to pay a lot less for even a luxury vehicle than its original price. This price you have to pay now varies based on the number of kilometers on the car and its year of manufacture. Think about how much money you would be saving!
Even if you need financial help buying a used car, your principal amount for the used car loan would be significantly less than the loan amount for a new car. If you have a specific budget on your mind, you can jump a segment and choose a relatively old model that might already have a few thousands of kilometers on it, but also comes with lots of features.
Additional Read: Top Used Cars to Go For This Year
Rate of depreciation is lesser which means that you lose less money
While every car undergoes a considerable rate of depreciation, a used car has the upper hand here. It usually depreciates at a slower pace compared to the new ones. One major reason why this happens might be because of the fact that you bought it after it has undergone a significant rate of depreciation.
Naturally, the used car loan interest ratesand the overall financial support you need to invest in such a car would be comparatively lesser.
It is no longer a suspense why many people these days choose to invest in pre-owned cars. However, before buying one, thoroughly run a check to find out more about its health.
Are you planning to take a loan to purchase a used car, but are not sure of your used car loan eligibility? If so, then Tata capital has good news for you. We offer used vehicle loans with relaxed eligibility criteria, attractive interest rates, minimal paperwork and flexible repayment tenures.
You can also visit our site today to calculate your loan amount and EMIs using a used car loan EMI calculator on our website.
Get in touch with us and finance your vehicle today!