In India, buying a car is considered a significant investment for a family, and many times, it is believed to be a symbol of status. While this is somewhat true, it is also a fact that cars are not cheap, and most middle-class households in India find it hard to set aside a lump sum amount to buy a brand-new car. This is where second-hand cars come into the picture. Not only are they more affordable, but they can also be bought on EMIs.
In this article, we shall discuss the advantages of choosing a second-hand car on EMI.
Advantages of choosing a second-hand car on EMI:
1. More affordable –
As mentioned earlier, most Indian households find it difficult to set aside a lump sum amount to buy a new car. On the other hand, second-hand cars are more affordable, and that is why they are the go-to option for most households. Moreover, if you opt for a second hand car on EMI, you get the benefit of paying the amount over a period, which makes it easier to manage your finances.
2. Lesser depreciation –
One of the biggest drawbacks of buying a new car is that it loses its value quickly, and it is said that a new car loses a major chunk of its value in the first year itself. However, if you opt for a second-hand car, you don’t have to worry about this aspect. While the car may lose a bit of its value, it will not be as much as what a new car would lose.
3. Lower second-hand car loan interest rates –
When you apply for a loan to buy a new car, the interest rates are usually higher. However, this is not the case when it comes to a second-hand car loan. The interest rate is comparatively lower, making it easier for you to repay the amount in EMIs.
4. Better bargaining power –
When you go to buy a second-hand car, you have the upper hand when it comes to bargaining. The seller is usually not as rigid as when selling a new car, and you can use this to your advantage while negotiating the price. Moreover, if you are buying the car on EMI, you can use the amount you save through bargaining to pay off the down payment or reduce the EMI amount.
5. Wider variety –
When it comes to buying a new car, your options are limited to what is available in the market. However, in the case of second-hand cars, you have a wider variety to choose from, and this gives you the advantage of selecting a car that fits your budget and meets your requirements.
6. Better value for money –
When you buy a new car, it comes with a high price tag, and the cost can be scary. However, when you opt for a second-hand car, you get the same features and benefits, but at a lower price point. This is especially true when it comes to premium cars that would be out of reach for most people if they had to pay the full amount upfront.
Buying a car, whether new or second-hand, is a big decision, and one that should not be taken lightly. That being said, there are several advantages to choosing a second-hand car on EMI. Not only is it more affordable, but it also offers better value for money, lower depreciation, and a wider variety to choose from. Moreover, with lower second hand car loan interest rates and better bargaining power, buying a second-hand car on EMI is becoming an increasingly popular option for most Indian households. If you are planning to buy a car, it would be worth considering buying a second-hand car on EMI.