The 'not-so-obvious' advantages to buying pre-owned cars

[TCS66SPDLSD]

Really a great thread, I too am a huge advocate of buying pre-owned cars.

Just to add my observations on the recent trends, there are a lot of well maintained cars out there, just because they are priced low does not necessarily mean they have some pending issue or some major expensive part to be replaced. The way of 'Juggad' that most mechanics used to believe in are almost over, car companies now even sell original parts over the counter, making a used car much more easier to maintain, with a new showroom car your bound to service at the A.S.S unless you don't care about the warranty.

The FNG's are also getting better at their game, lots have knowledge of how to deal with modern cars, but have marginally increased charges. With a used car its even more tempting and easier to get your hands dirty and learn more by fixing small niggling issues, it adds to the ownership feeling than just buying a 'car'.

[Samfromindia]

Really nice article ! Getting a pre owned ride do have its benefits, but i feel first time buyers or people without much technical knowledge on cars are better off buying new. It will be much less of a hassle in case anything goes wrong. Also they are more likely to get fleeced in the deal & maintenance. In case of bad accidents, a zero dep insurance on new car will cost much less to repair than a comprehensive one on a old car. Of course 2-3 year old car with say 30k on the odo may be as good as a new one, but its definitely not the case for older models which are priced much cheaper and people tend to buy preowned for a substantial cost saving, not just a small one.

[arjithin]

All my cars (4 of them) are purchased from used car market. My sweet spot is 2-3 years old, 20-30K km driven vehicles from private sellers. I use the cars for 3 years before getting next one.

car 1 Hyundai Elantra - Purchased at 60% of the new vehicle cost when its 2.75 years old, sold at 48% of new vehicle cost after 2.25 year of usage
Car 2 Honda CRV - Purchased at 67% of the new vehicle cost when at 2.25 years old, sold at 57% of new vehicle cost after 3.5 year of usage
car 3 Maruti Ritz - Purchased at 71% of new vehicle cost when at 2.5 years old, sold at 60% of new vehicle cost after 2.5 year of usage
Car 4 Maruti Ertiga - Current vehicle, but similar numbers

The low depreciation and high value for money along with the fact that a 2-3 year old well maintained car is almost new pulls me to used car market every time.

[pedrolourenco]

Originally Posted by anandkumargb

Honda City VX CVT
Bought = 2015 Jan model 7k kms car bought for 10 L in 2015 July (new one is 14.8 L)
Sold = 2016 Feb at 11k kms for 11 L; gained a Lakh
Profit = Rs 1 L

Originally Posted by nvldvr

That was amusing. We all would love to own cars that we can later sell off for a profit. Don't we??

I bought a Safari 3.0 Dicor 4x4 for 2L. It had alloys but had black bumpers. I spent 30K to paint the bumpers, few touch ups on the body, repainting the alloys and interior + exterior cleaning/polish. The interiors were really, really filthy as the owners used to carry his dogs in it.
Total Cost: Rs. 2.3 L
Sold after 3 months for Rs. 3.5 L

Profit 1.2 L

[sridhar-v]

There is one more hidden advantage:-

If you are a salaried or retired person, you can buy a depreciated car and not worry about your wealth tax limit being exhausted. So you can merrily declare the gold stashed away in lockers.

[Deo]

Totally agree with this logic of buying used car that brings more value. I ended up buying tastefully modified, immaculately maintained Swift ZXi for the on-road price of Nano. This brought me a car that has ABS, airbags, steering mounted controls, better seats, and looks good too. Except for Bluetooth in newer cars I don't miss anything. All I had to spend on this car is new battery and new set of tyres in last 2 years.

[GTO]

Originally Posted by The Brutailer

And thanks to 3M stores etc, you can get your car detailed and cleaned and you'll get that new car feel as well.

Well said! This is how my 6 year old used Civic looked after a 3M pitstop:

Originally Posted by Rajeevraj

Currently have my eyes set on a preowned diesel dsg Jetta

I think the VW Jetta is the best pre-worshipped car one can buy today. An all-rounder with solid mechanicals, good reliability & dirt cheap pricing. Please consider the sweet + more reliable 6-speed MT.

One other not so obvious advantage I have felt. Most people out there are laymen when it comes to cars. So most folks don't even realize that the car is a preowned one unless you tell them

Truly! Because I want people to spread the pre-owned fever though, I always tell people that my car was bought used (once they are done admiring it!).

Originally Posted by Tejas@perioimpl

Additionally, the amount of money saved on a used car, you put in 10% and change almost every essential bit from hoses, to oils to mounts and you are sure that your car is in top shape even though the previous owner has provided you with a clean service history.

Nicely put. As long as you are buying a car that is mechanically sorted (as your Pajero is), bringing it back to shape is easy. Just a couple of replacements away.

Not the case with an unsorted car like a used Superb 1.8 TSI DSG though. That model is a nightmare to own, whether new or old.

Originally Posted by Enigmatic

Considering the recent demonetization, does it make sense to go for a used car now or should one wait for a couple of months?

From the demonetisation thread:

Originally Posted by GTO

Used cars - a segment where black money has traditionally ruled - will take a major blow. Again, the white moneyed can look forward to some excellent deals. No better time to buy a used car with legitimate money.

Originally Posted by smartcat

Cost of new Maruti Alto AMT: Rs. 5 Lacs on road Bangalore
What I bought instead: Maruti A-Star AT: Rs. 3.3 Lacs

Apart from the accessories, what you have also got is a car that is waaaaaaaaaaay superior to an Alto. Newer design, safer, more rigid, smoother transmission.

Originally Posted by Nav-i-gator

One more advantage would be - OPTIONS

For example: If I have a budget of 8 Lakhs (non-extendable) and I am on the lookout for a sedan. My options for a new car would be - etios, dzire, zest, amaze, xcent, aspire. For 2nd hand markets, 8 lakh may fetch you an accord, octavia and what not.

Damn! Thanks for pointing that out. How could I forget? Will have it added to the article. From my ownership thread:

Originally Posted by GTO

The second thing I noticed is the w-i-d-e playing field. In the 30 - 50 lakh window, pre-owned choices are endless. You can have any kind of car you want (including 2 doors & convertibles) with whatever engine you lust for (up to V10 petrols & diesels). Just across the lane was a lovely 2009 BMW 750Li with a 4.4L turbo-petrol! Company maintained and in immaculate condition. It had been on sale for over 6 months with an asking price of 32 lakhs, albeit no one was biting. The 750's engine has a notorious reputation. Then, there was a stunning 2011 S500 (V8 petrol, asking 40 lakhs), innumerable Audi Q7s, an older Porsche or two and a Jaguar XF-R V8 petrol for only 24 lakhs. Among BMWs, there were two fast E60 M5s (troublesome SMG gearboxes keep everyone away). I could go on & on, but you get the gist. In the same price range, you probably have 20 new cars to choose from. In the pre-worshipped market, it's more like 200 models.

Originally Posted by Dieselritzer

This is something which my dad totally believes in. He is an automobile engineer, works as an insurance surveyor in the auto industry and has never bought a new car.

My kind of guy!

Like i mentioned above, It will be an uncomfortable position financially if it suddenly costs me a lot of money to repair some critical failed part.

Do what I do. Buy a car still covered by factory warranty + get extended coverage. Zero risk.

Originally Posted by Vishal.R

I am not sure If this is already covered or not but one advantage would be flexibility.

But If I had opted for a used car there, I could have explored for other option like a used car from Mumbai (Good place to get a used car I believe) or exploring my new company's lease policy and buy a new car. I would have preferred a petrol automatic for Mumbai.

Great point, thanks for sharing!

Originally Posted by Turbohead

Sorry for ruining the thread.
While all these points are valid we need to look at some of the disadvantages/ precautions

Not ruining the thread at all! Differing opinions are what makes Team-BHP interesting. How boring would it be if all of us agreed on everything.

What you have listed are the obvious disadvantages to buying used - something I 100% agree with. However, this thread isn't about new vs used - it's about not-so-obvious advantages to used!

1) Have a 10 lakh budget?
Don't go and buy that E90 3 series for 10 lakhs. Keep some reserve cash at disposable: Parts are going to be way more expensive. Say buy a car for 8 lakhs and keep the other 2 safely so as to avoid any heart attacks in the future.

Buy an Altis or Jetta, not that Bimmer. You'll be just as happy and avoid any heart disease!

If you're used to servicing your Dzire for 5 grand, be prepared to shell out 15-20 grand for your Jetta's service

While a Jetta will certainly be more expensive to maintain than a Dzire, it won't be 4 times. I can assure you of that.

I don't need to say this but you should be ready to see single digit figures a bit frequently

My brother's Jetta diesel MT gives 11 - 12 kmpl in the city. Is that less for a 140 BHP car?

The chances of part failures and replacements are higher in a used car than a new car.

But a Corolla is also built to higher quality standards than an Etios. I can bet you that a 9 year old Corolla will be just as reliable as a 6 year old Etios.

Originally Posted by speedmiester

While I am a big advocate of used cars, I had to buy a new car this year as none of the used cars came close to my requirements.

There will definitely be situations where new makes more sense. As an example, I myself got a new Sunny diesel. Reason = I wanted a beater for very rough use. Didn't want to put a 16 lakh car (even if it's used) through that. For 8 odd lakhs, nothing but a new Sunny fit the bill.

So all in all I don't miss a used car as I wasn't going to modify or red line my cars. I am a sedate driver and keep my speeds to under 100KMPH on the highways.

It's not just about redlining. A car from two segments above will be more refined, comfortable & safer when cruising at 100 kmph.

Originally Posted by anandkumargb

Some tips on buying used cars.

1. Since I change cars very frequently, I make it a point not to spend on accessories.
2. When I sell a car, I make it a point to change the ownership to the buyer myself and then sell the car.
3. I usually buy a used car which is an year to 18 months old and done under 10k kms. Point is that car will give you a almost new car experience and it wont breakdown and no major repairs.
4. I always buy popular and safe brands so that resale is easy.

Man, you are using cars for free! Great tips, thanks for sharing.

Originally Posted by TCS66SPDLSD

Just to add my observations on the recent trends, there are a lot of well maintained cars out there, just because they are priced low does not necessarily mean they have some pending issue or some major expensive part to be replaced.

Absolutely agreed. Cars today are better than ever. Take a look at any of the 3 used cars I bought and you'd be hard-pressed to tell that they are pre-owned.

Originally Posted by Samfromindia

but i feel first time buyers or people without much technical knowledge on cars are better off buying new.

Undoubtedly. If a newbie or the average joe asks me for car advice, I always recommend a new car to them.

Originally Posted by arjithin

My sweet spot is 2-3 years old, 20-30K km driven vehicles from private sellers.

Somehow, even though I was fine with 35,000 km odometer readings, I've always ended up with low mileage cars (4k, 7k & 19k....in that order for the 3 more recent used cars I got home).

Originally Posted by Deo

I ended up buying tastefully modified, immaculately maintained Swift ZXi for the on-road price of Nano. This brought me a car that has ABS, airbags, steering mounted controls, better seats, and looks good too.

Beautiful, just beautiful. Reading about these kind of deals makes my day. Congratulations.

[Mahven]

This thread changed my perception completely on pre-owned cars altogether.

I have done the same thing when it comes to owning flagship smart phones since my last two devices. I went for a pre-owned galaxy note 3 two years back which was still under warranty of 6 months for 25k at the time when the phone costed nearly 35k brand new, used it for two years and again went for a Note 5 for 26k which is also under warranty for another 7 months whereas the price for it in the market is still over 36K.

Need to seriously consider this option when it comes to buying my next car, thank you for such detailed information.
One of the perks of being a part of smart forums like this is the developed ability to read between lines and negotiate smart deals in the market!

[mmxylorider]

Another advantage is image. Only people in the 'know' know it's used. Others might assume you bought it brand new. See a fancy car on the road and you appreciate the car, not think about whether the owner is second or third.

[InControl]

Most of the time boredom kicks in after three years of ownership and the owner starts upgrading the car like a music system, aftermarket alloy wheels, seat covers and other stuffs but still ends up selling in another one year because all this cannot hold yur interest.

So someone who buys a 4 year old car will already have most of the upgrades like a upgraded music system, aftermarket alloy wheels and other add-ons without any additional cost to the buying price. WIN-WIN

[Amey Kulkarni]

Originally Posted by GTO

I think the VW Jetta is the best pre-worshipped car one can buy today. An all-rounder with solid mechanicals, good reliability & dirt cheap pricing. Please consider the sweet + more reliable 6-speed MT.

I am truely impressed by your comments and has triggered my mind again to think on preferring a good used car having factory warranty + extended.

I own a Dzire Vdi 2011 and pulling my hair off to shortlist a vehicle in the range of Rs 10L - Rs 12L to upgrade in Q1 - Q2 next year.

Jetta is one sweet machine to own and have it in your garage but important thing is the elephants are easier to buy but difficult to maintain.

PS: I am only paid once a month.

Could you please share a little overview on Jetta's annual maintenance on how this deal would be worthy if I were to compare it to a Ciaz Zdi or a Vento TDI MT for example?

Thanks in advance.
Cheers.
Amey

[TorqueyTechie]

To be frank I (nor my family) were advocates of pre owned cars earlier. It was because of two reasons :
1. I (we) being noob in this area and easy to be fooled. Not a lot of people in this field were honest.
2. There was always a mistrust with second hand vehicles. Lot of why's, what's and but's were always thrown around and invariably used to buy newer things.

This all changed during my onsite stint where in I was fortunate enough to get a clean BMW 5 series for a good deal. I had to search for some time but I did get a clean car which was trouble free for the entire duration that I owned and still got a good resale when I relocated back.

So when I returned back , I thought of searching for a powerful but used European car (read fiat which is the only one I could afford ) Anyways to cut a long story short after two month of search finally found the one which is keeping me happy from the past 1.5 years.



Basically I paid 40K out of my pocket after selling my old car to get a much newer (just 6k on the ODO) , very much powerful (100bhp) car. Emboldened by this now I am on the lookout for a vintage RE or yezdi to own !

[Axe77]

What an awesome thread. I always knew the advantages of buying used but seeing it out on paper like this just cements it further.

Thanks for laying it out so clearly.

Cheers

[Mafioso]

I'm in a great dilemma. Currently I have a 8 year old Swift doing the daily duties for me and I'm planning to upgrade. I initially thought a budget of 12 lakhs for the new car, but nothing seemed to tickle my heart! After reading this thread, it seems Jetta is a better buy. Now the confusion is I can sell my car for around 3.5 lacs and I have a corpus of about 2 lacs which I can divert to the new/used car buy. But used Jetta seems to be around 9-10 lacs, so is it worth going in for a used car load of 5 lacs vs a new car loan of 6-7 lacs? And if I'm buying it from an individual how does this used car loan get sanctioned and paid to the seller?

[hserus]

Er - is there anything at all wrong with buying a car for around 4 lakhs (means a decent used 1.2 liter sedan) and then spending 30k odd on whatever needs to be done to it? Keep the rest of the money for a rainy day.

Whatever you buy will be a segment higher than the Swift and will have more facilities anyway.