Are you in the market for a used car but unsure when to purchase it? The timing of buying a used car can make a significant difference in terms of the amount you pay and the options available to you. Factors such as car loans, interest rates, and EMI can all affect your decision.
Let's explore the best time to buy a used car. We have also curated a few tips on getting the best deal possible.
Best time to buy used cars
Purchasing a pre-owned vehicle is most advantageous at the year's close, particularly in December. This period sees dealerships presenting various discounts and incentives, aiming to enhance their sales figures before the year concludes.
Some of the best times to buy a used car are as follows:
1. End of the year: Dealerships usually have sales quotas they need to meet by the end of the year. As a result, they may be more motivated to sell cars, including used ones, at a lower price towards the end of the year. Therefore, consider potentially considering buying a used car in November or December to take advantage of this opportunity.
2. End of the month: Similar to the end of the year, dealerships also have monthly sales targets. Towards the end of the month, they may be more willing to negotiate on the price of a used car to meet their targets. Remember this if you're in the market for a used car.
3. When a new model is released: Dealerships typically lower prices on older models when new ones are released. If you're not concerned about having the latest model, you can get a better deal on a used car when the new model is released.
4. When interest rates on car loans are low: Lower interest rates mean lower monthly payments and can save you a significant amount of money over the life of the loan.
5. During the off-season: If you're looking to buy a used car specific to a certain season, such as a convertible, consider buying it when demand is lower. This can result in a lower price and more bargaining power for you.
Benefits of buying used cars
If you're looking to buy a car, it's worth considering a used car instead of a new one. Used cars are generally cheaper than new cars, so that you can save money on the purchase price. In addition, insurance costs for used cars are typically lower than those for new cars, which can also help you save money.
If you need to finance the purchase, a car loan, such as a used or second-hand car loan, can help you get the money you need at a lower interest rate than a new car loan. By using tools like a car loan interest rate calculator or a car loan EMI calculator, you can better understand what your loan payments will look like before you commit.
Also Read: [Own A New Car]
Difference between a used car and a new car
| New Car |
Used Car |
| Higher purchase price |
Lower purchase price |
| Depreciates quickly |
Depreciates slower |
| Higher insurance costs |
Lower insurance costs |
| Higher financing costs |
Lower financing costs |
| Comes with manufacturer warranty |
May have a remaining warranty or no warranty |
| Latest features and technology |
It may have older features and technology |
Conclusion
Buying a used car can save you a lot of money, but it's important to do your research and consider factors such as the age and condition of the car, as well as interest rates on car loans.
Car loans can be of different types, with a loan amount starting from Rs.1 lakh onwards. New car loans offer up to 100% on-road funding, while used car loans offer up to 95% of the valuation amount for sale-purchase and up to 85% for refinance loans.
Parallel car loans offer pre-approved parallel loan offers with a maximum tenure of up to 4 years for its customers.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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. Please consult your financial advisor before making any financial decision
