Buyers are entities that keep on evolving. Their goal is to get their hands on the best deals and to achieve that, they’re willing to forego traditional shopping habits. The story of the luxury car market in India is quite similar.
The modern luxury car buyer is not limited and doesn’t necessarily rush to a showroom to snag a brand-new luxury sedan or SUV. Instead, they’re open to flirting with alternative options to own and adore the car of their dreams.
These buyers are often faced with two major options when finding a rather economical route to owning a luxury car.
These include the following:
– Shopping for a pre-owned luxury car
– Buying an unregistered luxury car
As compared to buying a brand new one, these two options offer impressive saving opportunities. And owning a swanky Mercedes-Benz, a power-packed BMW, or a sleek Audi doesn’t seem like a far-off dream.
However, both options have their set of pros and cons! In this article, we will dissect them to help you make a well-informed choice.
What are Pre-Owned Luxury Cars?
As the name suggests, these luxury cars have already been owned, registered, and used by an individual buyer or a business before arriving in the resale market.
Things to Know About Pre-Owned Cars
- The condition of the car varies depending on usage history, age, and mileage.
- They can be bought via OEM-certified used car programs, private sellers, or independent dealerships.
- The depreciation is already factored into the price, making them a significantly affordable option.
- While buying one of these, buyers must consider factors like transparency in service history and accidents, and ownership details.
What are Unregistered Luxury Cars?
Unregistered cars, sometimes known as demo cars or showroom cars, are primarily brand-new vehicles that have not registered with the Regional Transport Office (RTO).
Things to Know About Unregistered Cars
- Are usually used for test drives and display at showrooms and dealerships.
- Have very minimal mileage on them.
- Comes with the advantage of manufacturer-backed warranties that often begin from the registration date.
Key Differences: Unregistered Cars vs Pre-Owned Cars
Here’s a side-by-side comparison of the two options:
| Aspect | Unregistered Cars | Pre-Owned Cars |
| Registration | Not registered yet | Already registered |
| Ownership | You become the first owner | You’re the second owner at best |
| Condition | Almost like a new car | Depends heavily on usage history |
| Pricing | 10%-15% lower costs | Up to 40% lower costs |
| Financing | Similar to new car rates | Varies based on age |
| Warranty | Often come with a Manufacturer’s warranty | May or May not come with a warranty |
Unregistered Cars vs Pre-Owned Cars: Pros & Cons
To help you make up your mind with slightly more clarity, let’s look at the pros and cons of both these options separately.
Unregistered Cars
Pros:
- First-owner benefits
- Despite the older model year, the condition of the car is close to ‘factory fresh’.
- Often comes with a manufacturer’s warranty that begins with the registration of the car.
- When compared to the current new model of that car, these can cost up to 25% less.
Cons:
- Limited availability in terms of color, variant, etc.
- It can sometimes have a slightly older set of features as compared to the current models.
- Storage-related wear and tear is a possibility.
Pre-Owned Cars
Pros:
- Highly economical option, especially for luxury cars which depreciate heavily in their first 2-3 years.
- Opportunity to choose from a wide variety of options and even snag old trims or discontinued models of a car.
- When buying via Certified Pre-Owned Programs (CPO), peace of mind comes along with the luxury car of your dreams.
- If well-maintained, pre-owned cars offer impressive resale value as the biggest depreciation hit has already been absorbed.
Cons:
- Possibility of usage-related wear and tear that is, in some cases, quite visible.
- Ownership history concerns are an issue, especially in the case of cars with multiple prior owners.
- Interest rates on loans are much higher as compared to the same for new cars (or for the sake of this comparison, unregistered options like demo cars).
- Repair and replacement expenses can be pretty high for out-of-warranty pre-owned cars.
Who Should Buy What?
We would call this ‘The Verdict’ section but we dare not. Why? Because the final verdict is that of the buyer, based on their own preferences, needs, and other factors.
So, here are our two cents on the question asked in this section.
Opt for Unregistered Cars If:
- You want the benefits and the psychological satisfaction that comes with being the first owner of the car.
- You want zero risk that is usually associated with a previous owner having used the car and any issues that it might have led to.
- You are seeking a full OEM warranty and reliable after-sales support.
- You want to buy the closest thing to a new luxury car at an impressive discount.
Opt for Pre-Owned Cars If:
- You are conscious of the budget and are seeking maximum luxury at the lowest possible entry cost.
- You need to skim through different colors, variants, and models before making up your mind to buy.
- You want to ensure that your purchase is ‘depreciation-proof’ because, as we said, pre-owned cars have already undergone the biggest depreciation hit.
- You’re comfortable compromising on getting the latest model of the car with the latest set of features.
- You’re willing to take out the time and energy to thoroughly research the car’s ownership and service history to get a decent deal on your hands.
Buying Tips for Both Segments
Irrespective of which of the two options you choose, we have some tips for you to make a rewarding purchase:
Thorough Inspection: People inspect thoroughly when buying a pre-owned car, which is great. However, even while purchasing an unregistered car, you should inspect the car carefully for any wear and tear
Document Verification: Make sure that all the paperwork is in place, like Vehicle Identification Numbers (VIN), tax certificates, and all the RTO paperwork.
Total Cost of Ownership (TCO): When making the big choice, don’t just rely on the purchase cost. Consider the Total Cost of Ownership (TCO), including potential resale value, insurance premiums, service costs, fuel economy, etc.
Service Records Check: If you’re siding with buying a pre-owned luxury car, remember to give its service history a thorough look. This will help you evaluate any mileage and maintenance claims beforehand. While conducting this background check on the car, also remember to check pending challans, insurance claims, etc.
Explore Certified Programs: Reduce the risk of any fraud or irregularities in the purchase by opting for either reputed luxury used car dealerships or going with OEM CPO programs.
Negotiate for the Best Deal: There’s room for negotiation for all kinds of purchases. So, whether you’re buying a pre-owned car or an unregistered luxury car, remember to negotiate to get the best deal.
Making the Smarter Luxury Choice
The choice between unregistered vs pre-owned cars in the luxury segment depends on a multitude of factors. These including the buyer’s personal preferences, their budget, and their expectations in terms of the ownership of the vehicle.
In a nutshell, both options give the buyer an opportunity to venture into the luxury segment while going a little easy on the pocket. Whatever option you go with, remember to prioritize buying from a reputed and trustworthy dealership.
You may choose to buy an unregistered demo car or a pre-owned luxury car. We, at Motozite, will have you covered for both your decisions. So, once you’ve made up your mind, explore Motozite’s range of luxury cars, featuring both pre-owned and unregistered versions!