Explainer: If you are thinking of buying a used car, then this news is specially for you.

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in India Used Cars The prevalence of has increased a lot. The used car market is getting bigger with each passing day. Some people buy a used car to improve their driving skills before buying a new car, while some people opt for a used car due to budget constraints. Whatever the reason for buying it, a car is a car and often, it is loved by its owner. This desire to own a car has paved the way for the used car market to flourish. You can buy a used car or a pre-owned car from an individual seller (regular car owner), a broker or a company. But whenever you buy a used car, you need to keep a few things in mind.

Keep these things in mind before buying a used car

• check car condition

• service record

• Scrutiny of Registration Certificate

• car insurance

• Transfer of No Claim Bonus

check the condition of the car

• Once you have chosen a car, it is important to pay attention to the smallest of details to arrive at a buying decision. If you are well-versed about the technical aspects of a car, you can inspect the vehicle yourself or take the help of a trusted mechanic. Although things may seem normal on the outside; A skilled mechanic would be able to tell if any concealment was done regarding the exterior and whether the engine, along with other parts, is worth the price.

car interior

• Take a look at the interior of the car. Check the front and rear seats for any cracks or stains. If the vehicle has electronic items like music system, monitor etc, try to use it to find out its working condition.

car exterior

• See well from all angles of the car. At first glance things may look fine, but a closer inspection may reveal a different picture. Beware of rusting and paint damage.

car framing inspection

• Although it is important to inspect the car closely, taking a step back and inspecting the framing of the car can also tell a lot about the vehicle. Check whether the car is placed evenly and confirm that nothing is loose near the chassis.

tire inspection

• Tires can be in good or bad condition depending on the usage. You can check the uniformity of the tires with respect to wear and tear. If the tires are not worn evenly, it can cause alignment problems, which means the car may veer in one direction while driving.

engine

• It is recommended to inspect the engine thoroughly. Check for leaks, corrosion and broken tubes. Also, check the oil and transmission fluid using the dipstick.

mileage

• If the car is not very old but has major mileage issues, it could be a result of deeper problems. Discuss the mileage with the seller in detail as it is difficult to inspect at one go.

test drive

• Test driving a car will give you a lot of information related to its performance. Be careful while driving on the highway, in narrow lanes, take U-turns etc. Pay special attention to the brakes. Driving the car for a long time will give you an idea about its speed and suspension as well as handling capabilities.

service record

• Some car owners maintain meticulous servicing records. They have receipts and dates marked on them. On the other hand, some owners do not put much thought into maintaining records. They keep a mental note of the number of visits to the service center in a year and the type of service done.

• Have a detailed chat with the seller regarding the maintenance history of the car. If you get well organized records, you can follow that based on your usage. If you get the oral history, you can analyze to what extent the car needs servicing

Scrutiny of Registration Certificate

• Verify the authenticity of the vehicle’s registration certificate. It will have the name of the owner and details of the car – engine number, chassis number etc. Certificate must be original. If it is a duplicate, it will be marked as DRC. In that case, talk to the seller about the DRC status and check in which state the car was registered. If you want to move to another state, the car has to be registered at the Regional Transport Office (RTO) of that state. Your name should appear on the Registration Certificate of the vehicle after purchase.

• Original purchase invoice, insurance, road tax receipt and pollution certificate are other documents that need to be checked while buying a used car. If the car is financed, Form 35 and NOC from the financing company are also important. Note that any modification in the displacement of the engine or change in the color of the vehicle must be specified in the Registration Certificate.

car insurance

• While buying a second-hand car, it is necessary to transfer the insurance of the old car in the name of the new owner. If the seller doesn’t actively do it, it’s the buyer’s responsibility to get it transferred. If the car insurance is not transferred in the name of the new owner and the vehicle is involved in an accident or other such unfortunate incidents, there could be legal issues.

• Also, the extent of insurance coverage should also be checked. You need to check whether the active insurance policy is a third-party liability policy or comprehensive. If you feel that you need to strengthen the existing insurance policy, then suitable car insurance add-ons can be considered while renewing.

• You can also choose to discontinue the existing policy and buy a new policy for yourself. Driving without a valid car insurance policy is a punishable offense in India, so make sure you have at least a compulsory third-party policy. Another option is to buy a comprehensive level of own damage cover by choosing a comprehensive policy.

Transfer of No Claim Bonus

• This thing is related to car insurance. NCB is a bonus. This is a reward for not filing a claim during the policy term. Hence, it is known as No Claim Bonus (NCB). This bonus can get you a discount while renewing your car comprehensive insurance policy. Such bonus is linked to the owner of the car and not the car itself. The No Claim Bonus can be transferred from the old car of the owner to the new car of the same owner but not from the seller to the buyer. Hence, this can be taken into account when the owner sells the pre-owned car and shifts to a new car.

• For example, with regard to second-hand cars, if you are selling your existing car and then buying another car, it can be beneficial for you. If you have 50% NCB deposit then you can save a lot of money on car insurance. You can calculate and note that amount while budgeting for your latest vehicle comprehensive insurance policy.

Why should you do a car name transfer?

• The details of the new car owner should be reflected in the registration certificate of the car. For this, you have to follow the procedure prescribed by the RTO of your area. In case of a broker or a used car company, the ownership transfer process is also handled by the broker/company.

how old is the car

• Generally, cars can break down after five years. After a few years, the old car may require repairs, and its maintenance cost may add up. There is a possibility that the car will not be used to a great extent, but if the car was manufactured five years back, would its spare parts be easily available? In comparison, one can buy a new car and not make optimum use of it, but buying a used car without keeping long term planning in mind can be counterproductive. think it through.

finance

• Whether buying a new car or an old car, it is an expense. Like every big expense, it also needs planning. Loan, interest rate, exchange value of a used car, etc. are terms that should be thought through in detail before buying a used car. If you are planning to buy a used car for ‘x’ amount, how much would you invest to repair it if needed? Are you planning to customize it or add accessories to it? What is the amount of these additional expenses? These are some of the questions that you need for efficient financial management with regards to buying a used car.

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