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Buying Used Cars – A Smarter Move?


It's interesting to see that India’s used car market has been showing a stable growth than the new car market. As per the Economic Times report, from 1.6 million units in 2011, it is now pegged at 3.3 million units (Sept 2018). According to Nagendra Palle, MD, Mahindra First Choice Wheels Ltd, the used car or pre-owned car market will continue to grow at a steady pace of 15% to touch Rs 2,50,000 crore or 6.6 million units by 2021. There are multiple reasons why used car market is flourishing in India – reduced ownership of first-hand cars will go down to 3.5 years by 2021 from 6 to 7 years. This is one of the reasons which has increased the flow of used cars in the market. Another reason is that the quality is improving with varied options and lastly, with used car market getting organized with the help of players like OLX Cash My Car has increased the credibility of the service as well as gradually changing the consumer mindset too.
There are multiple reasons why buying a used car is become the go-to option for many of the millennial. Here are some interesting ones to look at:

Why spend more when you can get it for less?

A car worth INR 10-12 Lakh gets depreciated by 20%-30% as soon as it has travelled a few kilometres. Though the condition of the car is not depreciated anything close to the cost of the new car. Therefore, used car buyers have become smarter in weighing the money spent and the return. As new car buyers are upgrading their cars every 3-4 years, so is used car owners. Hence, it is a fruitful deal for the used car buyers too.

Thanks to Organised Players

Though only 12% of the used car market is organized but choosing the right partner is the crucial decision. OLX Cash My Car is one of them which will always help you to buy the best car with the optimum pricing. Not only they take care of the entire process but they make sure you are taking a well-maintained car home. Buying a used car involves a lot of paperwork also which are mandatory to be performed which can be confusing too. So, choose a partner which can make the documentation easy too.

Less Insurance Cost

As soon as the car leaves the showroom there is a drop of 20% to 30% in value of the car so on and so forth. With the depreciating value of the car, you will end up paying less of the insurance amount every year. Surely it decreases the burden on the new owner while you are still enjoying the features of the car.

Buy used cars when the time is right

Towards the end of the month sales executives are struggling to meet their targets. Therefore, it might be the right time for a better negotiation to buy a used car. Another right time is during the discount season when new cars are on discount during the festive period. Many of the owners would want to upgrade their vehicle and thus, sell their cars immediately. Therefore, there will be a surplus of used cars at least in few of the car categories which will make the cost go down.

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