Buying a used car? Remember these 5 things
Used cars are steadily gaining momentum in today’s automobile industry. The reason is simple – individuals get to enjoy the comfort of a car without burning a hole in their pockets. For learners, used cars are better as they can practice their driving skills before investing in a good model. Thus, the used car market is becoming popular. Based on a study conducted by Techsci Research, here’s how the used car market has grown and is expected to grow in the coming years –
(Source: https://www.techsciresearch.com/report/india-used-car-market-by-vehicle-type-small-mid-size-luxury-by-sector-organized-vs-semi-organized-unorganized-by-sales-channel-dealership-broker-vs-c2c-by-fuel-type-petrol-others-competition-forecast-opportunities/1239.html )
Though used cars are a good way to own a car at a small budget, you should be careful when buying them. The following are five tips for buying a used car in India –
5 things to check when buying a used car
- The car’s condition and the asking price
The first thing which you should check is the condition of the car. If the seller is selling his old car, chances are that the car is not in a very good working condition. So, check the mileage, engine capacity and performance of the car. Moreover, the price of the car should also be checked. You should make sure that the car’s price is proportionate to the car’s age and condition. You can choose verified and trusted dealers of used cars who offer verified cars at verified prices.
- The car’s papers
Buying a used car involves change in ownership of the car from the seller to you. In such cases, the change in ownership should reflect in all documents associated with the car. So check whether the car has all the relevant and necessary paperwork. Some important documents which you should ensure include the RC book of the car, insurance certificate, PUC certificate, road tax certificate, original invoice, etc.
- Transferring of RC Book
The Registration Certificate (RC) of the car is an important requirement for you to have. It lists the manufacturing year, registration year and other details of the car. The car should have its RC book which should then be transferred in your name when you buy the car. Ensure that the car’s RC book is available and that it is transferred in your name so that you become the legal owner of the car.
- Transferring the insurance policy
The car you are buying must have a car insurance cover on it as it is mandated by the Motor Vehicles Act, 1988. Originally, the insurance policy is in the name of the seller of the car. When you buy the car, the policy would be transferred in your name. The seller has to get the policy transferred. When the policy is transferred, a new Insurance Certificate would be issued containing your name as the policyholder. However, the No Claim Bonus in the existing policy would stay with the old owner. If you had an existing car insurance policy, you can transfer its NCB to the used car policy.
Read more about role of insurance in trading a used car.
- Fixing the car before using it
The used car might have glitches which need fixing before you are able to drive the car. Ideally, the car should be in perfect working order when you buy it. If it isn’t, ask the seller to fix the car before you buy it. You can also fix the car yourself as per your requirements.
So, if you are considering buying a used car, remember these points as your used car buying guide. They would not only help you in buying the car smoothly, they would also ensure that you don’t face unpleasant surprises when you start using the car. A little awareness is never dangerous, is it?
Read more about anatomy of car insurance plan.
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Check out our video to understand things to keep in your mind before buying a second hand car