Buying a used car? Key 6 tips you must keep in mind before making any deal
Buying a used car could be a worthy decision if a few tips are followed correctly. Or else, it could become a major troublemaker.
While the car manufacturers are launching new cars, the global COVID-19 pandemic has brought a drastic change in consumer perspective. During the pandemic and since then, many car buyers have started thinking more positively about the pre-owned cars, which gave the used car market in India a major boost. Even at one point, the growth pace of the used car market outpaced the new passenger vehicle market in the country.
According to a study, the Indian used car market is a large and rapidly growing sector, with a market size of approximately $35-36 billion in 2024. It is projected to expand significantly to over $100 billion by 2033 at a CAGR of roughly 12-15 per cent. Various key factors have been driving this growth, which include increased disposable incomes, a larger middle class, the shift to digital platforms, and a preference for more affordable mobility solutions. Entry of almost all the major OEMs in the country, along with other large players, has further strengthened the growth pace of this category.
Despite the normalisation of the public transport system after the pandemic, many people still prefer to commute via their own vehicle, considering it safer. Besides that, people who aspire to own a car but don't want to spend a hefty amount on new vehicles, first-time buyers, and those looking for a good car at an affordable price range prefer pre-owned cars.
Buying a used car could be a worthy decision if a few tips are followed correctly. Or else, it could become a major troublemaker. Here are some pros and cons you must know before buying a used car.
While buying a used car, pricing is he biggest benefit in comparison to a new car. While purchasing a new car, the moment it comes out of the showroom, the value starts decreasing. In the very first year, the value of the model declines by about 20 per cent. This means if you buy a used car that was launched a year ago, you can save up to 20 per cent on its original cost. Considering most people drive their cars less in the first year, if they are willing to sell it, it could get you a great deal. However, don't always look at the price, but inspect the car thoroughly, if possible, by an experienced mechanic.
Buying a used car can allow you to purchase the particular variant at a significantly lower cost than buying the same trim completely new. The reason behind this is that variants usually don't matter much in the pre-owned car market. Hence, if you can search well, getting a good deal on a top-spec trim of a less driven car in the used car market at a price which you would have otherwise paid for a lower trim in case of buying a new model, could be easy.
One of the advantages of buying a used car is getting the car at a cheaper price, which means you have to apply for a lesser loan amount and therefore, you are liable to pay a lesser amount as interest. However, banks and loan providers usually charge a higher rate of interest on a used car loan than they do on a new car loan. Besides that, the insurance premium for a new car is comparatively higher than an old car. This means you have to pay lower premiums because the car’s IDV is lower than what it was when the vehicle was new.
If you are buying a used car from a dealership, it's likely thoroughly inspected, and the paperwork would be taken care of by them. This means a lack of hassle for the buyer. On the other hand, if you are buying a used car from an individual, you have to do your paperwork by yourself.
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If you are buying a used car from a dealership of an OEM, and the vehicle is already within the warranty period, it could be a great deal. In such cases, you can avail the original warranty of the car as well as the warranty provided for the used car. However, if you are buying the car from an individual, you won't get any warranty.
The used car market comes with a lack of choice for buyers, as compared to the new car market. For example, if you are planning to buy the top-spec variant of the Hyundai Creta, it might not be available in the used car market. This is a disadvantage for the buyer if he or she is looking for a specific trim of a specific model.
Check out Upcoming Cars in India 2026, Best SUVs in India.
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