The second-hand car business is big in India because you can get a well maintained car that costs half of the launch price. It gives the opportunity for the buyer to own a premium car without making a big dent on their savings. The cost of used cars starts from around 2 lakh for a Maruti Suzuki Alto and can go from 5 lakh upto 6 lakh for a premium hatchback like the Volkswagen Polo. It is possible to get a second-hand car for less money, but the service record may not be available, the car could have been in an accident or it could be that it just wasn’t well maintained. These are cars you want to stay clear off, because you will have problems with maintenance and repairs down the line. It is better to pay a premium for the used car, rather than buy a car with a doubtful history. If you’re in the market for a car and are currently on a limited budget, then a used car makes perfect sense for you. The best part is when you decide to upgrade your car in the next few years, you won’t lose as much money as a new car in depreciation. It’s a win-win situation for you.