The best time to buy a used car

Buying a used car can be an intelligent financial decision. But before you head to a dealership, read on to find out how timing your used car purchase can save you considerably more money.

Today, many people consider owning a car a matter of necessity rather than a luxury. In fact, there has been an upsurge in the acceptance of buying used cars where the costs don’t break the bank. But did you know that you could save even more if you buy a used car at the right time? Read on to find out.

When Should You Buy a Used Car?

Buying a used car makes great financial sense, and to get the most bang for your buck, here are the times when you should make your purchase:

1. Year-ending or Quarter-ending: 

Any sales professional will tell you that most of their sales take place at the end of the year or the end of a quarter. Sales of cars, be it new or old, are no exception to this fact. Sales teams at dealerships and showrooms have designated sales targets, and the pressure is on to meet those targets before the year or quarter ends. To do this, they offer additional discounts on the cars. So, try to time your purchase during the last weeks of March, June, September, and December. You will be able to negotiate and make a better deal for yourself.

2. Festival Time: 

Whether it is cosmetics, shoes, clothes, or appliances, we know that we get the best deals during the festive season. So why should buying a used car be any different? Used car dealerships and showrooms often have sales going on to lure customers. Very often, along with additional discounts, they will offer extended warranties, upgrades, free accessories, and so on.

3. Launch of Newer Models: 

Many people trade in their older cars when new car models are launched. So at these times, car dealerships are eager to sell used cars at a lower price. 

4. When You are Financially Ready: 

Purchasing a used car costs less than a new car, but it is still a considerable investment that can run into lakhs. Planning is crucial. The price of a used car may be low, but you would be paying higher interest compared to new vehicles when you take a loan. To prepare yourself, you can use a loan calculator.

While planning to buy a car, you must also apply for a FASTag online. Doing so can help you avoid waiting at toll plazas all day. If you wish to apply for a FASTag online, choose IDFC FIRST Bank's FASTag, FIRSTForward, for the wide range of benefits on offer!

But Why Buy a Used Car in the First Place?

You might still be wondering why you should buy a used car instead of a new one. Here are the advantages of buying a used car:

1. Saves Money: 

A brand new car in the showroom can cost you Rs 10 lakh. The same car model, out of the showroom, and just a few months to a year old, will cost you a few lakhs lesser. So, your hard-earned money goes a lot further with a used car.

2. Depreciation Value: 

The minute you drive a new car out of the showroom, the car depreciates in value. For most cars, the depreciation value in the first year is around 20%. Depreciation slows down with time. So that new Rs 10 lakh car that you bought may have a resale value of only Rs 5 lakh in just three to four years. Suppose you buy a lower-cost used car, when reselling it, you will not feel the pinch of the resale value. The car’s original owner would have absorbed the depreciation amount already.

3. Get a Better Model: 

For a lower amount of money, you can get a better and bigger car model than you would normally afford. So at a lower cost, you can afford car models with better looks, features, and comfort.

4. Easier Loans: 

Many banks, financial institutions, and car manufacturers now offer loans for used cars at reasonable rates. This means you don’t need to be saddled with a huge debt over your head just because you have purchased a car.

Summing up

Buying the car of your dreams is easier than ever. So stop dreaming and start planning. Plan your finances smartly and plan your purchase wisely. While you look for the best deal, check out the best-used car loans to get the best car model of your choice.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.