Snapshot – The new car vs used car debate is a well worn subject, but how about a used car that is almost as good as a new car? Well, cars that are about a year old, that are lovingly maintained and that have a few thousand kilometers on the odometer are hot property on the car market. In this feature, we’ll tell you why you may consider a one year old used car rather than a brand new one.
It’s all about the affordability
New cars cost a lot of money, which is the major reason why people are looking out to snag nice deals in the used car market. Buying a sparingly used car a year from when the car first rolled out of the showroom shelves allows you save a lot of money. For instance, if a brand new Ford EcoSport Diesel costs about 10 lakh rupees, you’ll end up paying only about 8.5 lakh rupees for a 1 year old example with less than 20,000 clicks on the odometer. Lo and behold, a car that has enough life in it to last you more five years before any major mechanical work, now available for a chunky discount. Also, your choices dramatically expand once you hit the used car market. Picture this. You are a hatchback buyer for whom a brand new sedan is too much of a stretch. This very sedan, a year old and sparingly used, will seem much more affordable once it turns up at the used car dealership.
Let the first owner take bother with the depreciation
As soon as you drive a new car home from the dealership, the car just lost about 10 % of its value. Yes, make no mistake. Cars depreciate fast, especially in the first year of ownership. Buying a one year old, used car will fetch you an almost new ride that is about 15 % cheaper than a brand new car. That isn’t all. When you sell the same car in about 3 years time, you won’t be hit hard as the first owner would have taken care of the initial depreciation. So, if you change your cars one in say 3 years, a one year old, used car is a superb bet for you.
A one year old, used car is “almost new”
Regularly maintained modern day cars – both petrol and diesel powered ones – can do about 2 lakh kilometers before needing any major mechanical attention. This directly translates into higher reliability. So, a one year old, used car that has about 10,000-20,000 kilometers on the odometer, easily has 90 % of reliable, working life left in it. Also, most modern cars are robustly built and many brands offer niggle free cars that are put together well enough to not require any out of turn repairs for at least 5 years. If you can get around that new car smell and feeling, the “sparingly used” car market is where you need to look at for value-for-money deals.
You get to keep the warranty, and along with it comes peace of mind
Car makers routinely offer warranties that run for two years/40,000 kilometers at the minimum, with options to extend it to two more years or so. Buying a one year old car with say, 10,000-20,000 kilometers on the odometer means that the car is still under warranty. This also means that you have the factory warranty to take care of your car in case of any mechanical issues. This directly translates into peace of mind, especially as many people have the jitters while buying a used car with the fear of landing a lemon. While shopping for a 1 year old, used car, try to choose cars which have extended warranties. Also, you need to ensure that the first owner has completed scheduled services regularly, for not doing so would void warranty.
Waiting period, what waiting period?
New cars, especially the ones in big demand, come addles with long waiting periods. The Ford EcoSport, the Maruti Celerio AMT and the Hyundai Xcent are three examples that currently have long waiting periods running to a few months. Buying a 1 year old, used car means that the waiting period is inconsequential for you. Also, cars in high demand such as the EcoSport and Celerio command no discounts at the dealer’s end. Buying these cars in the used car marker will ensure that you stand to gain a chunky discount as new cars depreciate fast in the first year. So, you stand to avoid the waiting period as well as gain a nice discount of sorts.