Over time, the used car market has experienced substantial growth. Compared to other significant industries, it was one of the least hit during the epidemic. The Indian used automobile market was estimated to be worth $32.14 billion in 2021, and by 2027, it is anticipated to grow to $74.70 billion, showing a CAGR of 15.1% over the forecast period of 2022–2027, according to a report by Mordor Intelligence. Due to the many advantages of owning a used car as opposed to a new one, used car sales are increasing today.
With the rise of the used car market, we can see a significant rise in certified pre-owned cars as well. Both used car and certified pre-owned car have their own benefits and drawbacks which attracts users to choose between them.
What is a used car?
A used car or pre-owned car is which has had at least one user or buyer in the past. Such cars are priced significantly lower as compared to the new cars. The price of the used car depends on numerous factors such as the number of used years, model of the car, condition of the car, and any damage or any wear and tear of the car. As a seller, if you maintained the car well, there are chances that you might get a decent price for the car.
Benefits of used car
- Cheaper:If you are buying a car for the first time, a used car is one of the best options available. There are numerous benefits of a used car – being cost-effective is one of the prominent benefits. With the recent rise in the prices of cars, buying a used car is a perfect solution to save a lot of money on a car. As compared to a new car, you will get a user car in less price depending upon factors such as car model, year of manufacture, condition of the car, and location of the user.
- Options and availability:With the rise in the car market, we can see that there is a long waiting period for buying a new car. If you are someone who does not like to wait and wants the car as soon as possible – a used car is the best option for you. There are numerous options available for a used car for that same model readily available at any given point in time. As compared to a new car or certified used car option, people opt for the used car since they are easily available.
- Drawbacks of used car:High Financing rate:One of the major concerns with a used car is the rate of financing. The interest rate for a used car is high as compared to a new car.
- Warranty:Generally, a used car is brought from an individual who doesn’t provide you with a warranty for the car. The manufacturer warranty for the car is not available for the used car.
What is a certified pre-owned car?
The dealer thoroughly inspects a certified pre-owned car. These certified pre-owned cars undergo several inspections which include checking the overall condition of the car. You get a warranty of the certified pre-owned car as compared to a used car. The quality of the certified pre-owned car is slightly on the higher side which makes it highly dependable for the buyer.
Also Read :- Guide on Used Car Loan – Apply to Disbursement Process
Benefits of a certified pre-owned car
- Warranty:A certified pre-owned car comes with a warranty that the dealer provides you. Alongside, as a buyer, you will get the quality assurance of the certified pre-owned car. The quality inspection done by the dealer covers all the points that you as a buyer are worried about.
- Proper inspection:There are high chances that as a buyer you might miss out on several quality checks that are required before buying a pre-owned car. Proper inspections and checking are done by the dealer which assures you about the quality of the car. Also, this means that you can go back to the dealer with any problems or issues. This is missing when choosing a used car.
- Fixed all issues:When it comes to certified pre-owned cars, the issues related to the car are taken care of before the dealership provides the certificate. E.g., there are any issues related to the engine or interior of the car is taken care of by the dealers at the time of inspection.
Drawbacks of pre-owned car
- High Price:As compared to a used car, you must pay a slightly higher price for the certified pre-owned car. The warranty and quality checks done by the dealer increase the cost of the pre-owned car.
- Limited choice:The option available with a used car is slightly higher as compared to a certified pre-owned car. There are limited choices and availability when it comes to certified pre-owned cars. There are certain required checks that need to be fulfilled for certified pre-owned cars which limit the availability of the car. Several used cars or other cars do not fit or pass the test of a certified pre-owned car.
To conclude:
Buying a car is an overwhelming experience – it requires a lot of prerequisites before finalizing a car, especially in the case of a pre-owned car. With Credit Success Used Car Loan, you will rest assured about the hassle-free experience of buying a pre-owned car. Our used car loan provides offers you car loan at competitive interest rate with minimal documentation and a quick loan application process. And, if you are worried about the flexibility of loan tenure, we provide you with a customized pre-owner car loan with allows you to choose a Comfortable and flexible loan tenure.
