Almost everyone who plans on buying a used car for the first time re-thinks their decision ten times over. Even if you are taking a loan to buy a car, you will ask yourself, “Am I making the right decision?” There are plenty of misconception and worries when it comes to buying a used car. There is definitely a sense of safety when it comes to buying a new car that has a warranty. Yet, there are some positives aspects in opting for a used car.

1. Price

Let’s be honest, the most obvious benefit about a buying a used car is the price. Whether you are paying from your own pocket or a loan, the financial strain is going to be easier than buying a new car. Not only that, because the price is significantly cheaper, you do not have to go for the cheapest car in the market. Rather, you can go for one that has good power and is comfortable. If you can push the limit of the loan amount, you can even buy the second hand version of dream car you wanted.

Additionally, a new car will require 10% down payment. However, for a used car that’s not the case. It can go as low as 5%.

2. Lower Depreciation Value

Whether it is a new or used car, it is going to depreciate in value. However, a used car is going to depreciate even slower than a new one. New cars lose as much as 40% of value in the first year of their purchase. That is not the case for used cars. So, if you re-sell the car later on, you will recover a significant amount of what you actually paid for it.

3. Option of Certified Vehicles

One of the safest sources of buying used cars is through a certified dealer. The used car comes with service guarantee and an extended warranty, just like a new car would have. The car has been thoroughly tested by the car dealer and hence, you are not likely to encounter major problems. This is because certified dealers have extensive inspections and repairs for every used car.

4. Cheaper Insurance

An added benefit of buying a used car, and most don’t realise it, is cheaper insurance. The rates are not as high as a new vehicle would be. It is a good point to negotiate with the insurance firm to lower their insurance rates.

5. Lower Registration Fees

The fees for registration of a used vehicle are significantly lesser than a new vehicle.

6. Lower Loan Rates

If you are taking a loan to buy the car, you will be eligible for lower loan rates, even if you are applying with Insta Auto Loan. Plus, the loan will be of a lesser amount, hence a lower financial strain on you.

All in all, a used car deal will save you cash and if you go to the right dealer, you will get a car in good working condition.