FINANCIAL SAVVINESS: WHY PRE-OWNED CARS MAKE SMART INVESTMENTS
In recent years, there has been a significant rise in the demand for pre-owned cars. Considering the changing consumer behavior coupled with wise purchasing practices, the trend is very unlikely to abate any time soon. Additionally, with car purchasing witnessing a paradigm shift from mere functionality to aspiration, pre-owned luxury cars are invariably becoming popular in the space.
Purchasing a car has always been associated with an elevation in social status. Along with this, gauging the availability of innumerable financing options these days, consumers continuously seek advanced technologies, features, design, and safety. Together, all the factors are giving the desired impetus to luxury cars in the pre-owned segment.
Perceiving the rising demand for pre-owned luxury cars, let’s look at some of the factors that make them a smart investment option. In this, offering value for money while facilitating the upgradation of status tops the list of benefits.
1. Appealing depreciation rate
The moment a new car is out of the showroom, its value plunges immensely in the market. In the period of 6 months to 1 year itself, the car loses purchase value by 15 percent. Likewise, the depreciation rate keeps magnifying with each passing year.
Contrary to this, pre-owned luxury cars depreciate at a much slower rate in comparison to a new car. It resides well with the shrinking ownership period, arising from the changing consumer behavior of constantly upgrading themselves with the premium and the latest model in the market.
2. Highly competent safety and luxury equivalent to a new car
In addition to standard safety features such as airbags, ABS, reverse parking sensors, etc., the luxury cars flaunt state-of-art technologies in confluence with advanced safety features. It brings about the integration of the latest features such as 6/7 airbags, hill-hold assist, ABS with EBS, etc. Along with this, the cars are well equipped with automatic and advanced sensors for enabling adaptive cruise control, blind spot monitoring, and forward collision warning. The presence of anti-theft features such as GPS tracking and a 360-degree camera facility make it the preferred choice among the consumers. Adding to it, the magnificence of design and the opulent interiors together elevate the presence of the car on the roads. As a result, the pre-owned luxury cars make for a plausible choice allowing consumers to avail features as good as a new car.
3. Lower insurance costs
The significant reduction in insurance costs is another major attraction for pre-owned cars. Taking into account the age of the car, the premium amount of the insurance depletes invariably. The premium is determined on the basis of the depreciation rate at the time of selling the car. In addition to this, the premium is further recalculated at the time of ownership transfer, immensely contributing to cheaper car insurance.
Where pre-owned luxury cars are rising to the prominence of smart investment options, the increasing penetration of organized players is further fortifying the offering in the segment. Looking at the dynamism of the industry, they play a pivotal role in striking the right deal for the vehicle with a focus on providing customers with value for money. Providing 360-degree services, they offer a wide range of car models under a single roof where they go the extra mile to ensure the vehicles are in good condition. Conducting thorough inspection, and carrying out rigorous maintenance and service, the pre-owned cars offered by them are as good as a new car.
Furthermore, taking care of complete paperwork during the transfer of ownership along with providing a long service history, contributes to saving a lot of effort and expenses for the customers, making it a wise investment for them.
(By Sumit Garg, Co-Founder and MD of Luxury Ride)
Disclaimer: This is the author’s personal opinion. Readers are advised to consult their financial planner before making any investment.
2023-12-15T11:43:44Z dg43tfdfdgfd