Financial Savviness: Why pre-owned cars make smart investments

financialexpress.com:

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.

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.

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In addition to standard safety features such as airbags, ABS, reverse parking sensors, etc., the luxury cars flaunt