What is the Real Cost of Buying a Used Car?

A lot of people will tell you that it is better to buy used Maruti Suzuki Alto K10 in Bangalore for sale than purchasing a new car. But if you are looking to purchase a used car, then these are the costs that you should be budgeting for:

Cost of Acquisition:

This is basically the amount that you would be paying for acquiring the used car. So if you pay 5 lakhs for a used car then it becomes your cost of acquisition.

Fuel Cost:

This will be a cost that you will be incurring on regular intervals. Whether you are buying a petrol car or a diesel car, you need to budget for the fuel charges.

Interest on EMI:

If you have borrowed loan for purchasing the used car, then with each EMI you are paying certain amount of interest. This interest should be considered as an additional cost for purchasing the car.

Taxes:

The used car loan will not be available for covering the cost of taxes or octroi levied on the car. These costs have to be paid for from your pocket.

Regular Maintenance:

After you have purchased the used car you will have to maintain it properly for superior performance. You will have to get it regularly serviced at an authorized workshop.

Unexpected Costs:

Despite being serviced regularly you may have to pay for certain repairs that have crept up unexpectedly. These unexpected expenditures can be ad hoc and cannot be controlled.

Insurance:

The premium that you pay for having a comprehensive coverage for your car is an additional cost.

Depreciation:

This is an annual loss in the value of the car and should be written off as an expenditure. The percentage of depreciation can be different for different years of ownership.

Leave a Reply