The used car market is currently well developed and continues to grow in line with the new car market. At the same time, used cars are also beginning to be sold in car dealerships, previously focused only on the sale of new cars. Special departments are organized in the structure of car dealers.
The main reason for this is that a used car is now credited when buying a new one and then sold to customers who do not have enough funds to buy a new car.
Buy a used car on credit.
Most banks have already recognized the need to operate in the used car market. In some banks, even more than half of the portfolio is already occupied by loans issued for the purchase of used cars.
And if we are talking about buying a car, the age of which does not exceed 5-6 years, then it is even more profitable to take a car loan. Because it is a secured loan and the conditions for the client are more favorable than a consumer loan.
Usually, the decision on the application for the purchase of a used car is made in the shortest possible time. To the extent this is important when buying a used car. in showrooms such cars are in good condition and it can be bought by another client if the bank's decision on a loan will have to wait a long time.
Used car insurance when buying on credit.
There is a widespread opinion that it is highly desirable to insure a new car under CASCO (and when buying a new car on credit, it implies compulsory insurance against damage and theft), and insuring a used car in this way is expensive, unprofitable ... in general it is useless. But it is not so.
Despite the fact that insurance companies, of course, are more interested in insuring new cars (according to statistics, they are still less unprofitable). And the cost of an insurance policy for new cars is influenced by many factors that increase its price - mandatory repairs at a dealer station (since the car is under warranty and may lose it during repairs in a non-dealer center), and remuneration for the salon through which it was sold car… many banks get their share of the premium for insuring cars purchased with their loans. And all this financial burden naturally falls on the policyholder.
As for the owners of used cars, these costs, for the most part, are bypassed. Plus, the policyholder has the opportunity to choose the insurance option that suits him. The fact is that used cars can be insured both excluding wear and tear for spare parts, and taking into account; you can repair a car after an accident at a service station, or you can get paid in cash according to the calculation of an independent appraiser. All this gives a good incentive for the development of this particular insurance segment and the growth of its popularity.
For used car insurers, it is most preferable to work with cars that are two to five years old. In many insurance companies, the rates for a two-to-three-year-old car practically do not differ from the rates for a new one, which allows customers to significantly save their money. After all, a three-year-old car is cheaper than a similar new one, on average, by 30%, and since cars are insured at their actual value, the price of an insurance policy for a used car is much lower.
The age limit of cars accepted for CASCO insurance is, as a rule, limited to 8-9 years, and usually insurance companies are not very fond of cars approaching the lower limit, and the rates for them are quite high. This is explained by the fact that such a car has already significantly dropped in price (from its original cost) and, with insurance under the option without taking into account wear and tear on spare parts, the insurer's expenses, even for a small accident, can significantly exceed the insurance premium paid by the client.
With insurance, taking into account wear and tear (which reduces the cost of the policy), the insured may already have a feeling of dissatisfaction, since after an accident that has occurred, the insurance payment will not be enough for a full service repair, and the car owner will have to pay extra from his pocket. For this reason, this type of insurance is not widespread.
