When it comes to buying a car, everyone has certain ambitions and aspirations. While buying a car has the basic purpose of easing commute, in India, owning a car is also synonymous with one’s social status. The bigger the car or the more renowned the maker, the more status to the owner of the car. However, not everyone can afford the car of their dreams at the price of a new vehicle. What do you do then? Do without a car? Not necessarily.
Buying used or pre-owned cars have come to acquire significant value in present times when millennials, in particular, are keener on buying expensive models at better bargains that come with used cars. In this article, we have compiled a handy list of tips for those who want to buy a used car. First, let us take a look at some of the advantages of buying a used car.
Why buy a Used Car
Oftentimes, the desire to buy a car can be quelled due to a lack of adequate funds or any other such reason. However, when purchased with due diligence, a used car can be quite advantageous as compared to a new car. Here’s why:
When buying a used car, you obviously end up paying far lower than the price you would shell out for a new car of the same model and make. This results in a significant saving in your finances and if you can get a good deal on a used car in a good condition, it only adds to the advantages. This also works well if you want to buy a high-end car from a reputed maker without having to shell out the full price for a new car.
Since a used car has already depreciated in value, you will not be impacted severely in terms of loss of the car value when buying a second-hand car. The bulk of the depreciation on the price of the car will be taken by the first buyer and if you maintain the car well, you can even resell it at the price you purchased it in.
Insurance coverage on a used car will also be lower as compared to a new car as the insurance value of the car depreciate with the depreciating value of the car in the years since its first purchase. Hence, in buying a pre-owned car, you will be paying lower premiums on the insurance policy.
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Tips for Buying a Used Car
If you are planning on buying a used car to meet your requirements, we have come up with the perfect checklist to help you make an easy and smooth purchase. Let’s begin.
- Choose the car you want
The first step to buying a used car is zeroing in on the car you wish to buy. This will depend on a number of factors, including your budget and your aspirations. Additionally, you will also need to decide if you want to buy your car from a used car dealer or from a private individual.
Leading car companies in India nowadays have dedicated used car showrooms across cities from where you can select the car of your choice and also get warranty and service deals. There are also maintenance and insurance costs to take into account so choose a car that will not just please you aesthetically but also be easy to run on a day-to-day basis without affecting your monthly expenses adversely.
- Check the car’s condition
This point needs no reiterating. Unlike a new car where everything is brand new, in a used car, there is some wear and tear from the previous usage. To get good value for money for the car, make sure you thoroughly check the car’s running condition. This will need an end-to-end inspection of the car engine, the cooling, transmission, wheels, etc. Get a car mechanic to carry out the evaluation if you feel you cannot do this on your own. Take a test drive to know if the car runs smoothly or if it has any issues that need to be worked on prior to purchase.
- Take a look at the registration
When purchasing a used car in India, be very particular about checking the registration documents of the car. The registration papers will tell you if the seller is the original owner of the car and if the car is being sold for the first or the second time.
If the seller cannot furnish registration papers, it implies that the vehicle has been obtained under fraudulent circumstances and you should keep away from such a deal.
- Check the insurance papers
When buying a second-hand or used car, ask for the insurance papers of the car. This will enable you to know the car’s insured value and can be instrumental in negotiating for the best price on the car purchase. Also, use the insurance papers to check how many claims have been made and the number of no claim bonuses which have been paid.
Frequent claims are an indicator of frequent repairs and mishandling of the vehicle which will enable you to test whether the vehicle is worth the price being asked for.
As far as insurance is concerned, also see if you can have the insurance transferred from the existing owner. If yes, then have the insurance transferred within a fortnight of purchasing the vehicle.
- Get all the necessary documentation
When you are purchasing a used car, you will need to make sure that you have all the necessary documentation in order to get clear transference of ownership. The complete documentation list should include the proof of the sale of the car or the sale agreement between both parties, proof of the delivery of the car to the buyer, i.e. you, a new RC book which is in your name (obtained from the Road Transport Authority in your state), insurance papers either seeking cancellation of a policy in seller’s name or transference of the policy to the buyer’s name as the case may be.
Another important document is the Pollution Under Control or PUC certificate which has been made mandatory for vehicles under new laws.
- Ask for the records of maintenance
To know about the exact shape in which the car is, it is important that you take a look at the records of maintenance. While the seller will tell you that everything is great with the car, you can only know the truth of the claim when you look at the maintenance records of the vehicle.
Check the service book and go over it carefully to know what kind of repairs and maintenance has been carried out on the vehicle since its purchase. This will tell you if the car has been damaged in the past and if any components have been replaced.
- Obtain financing if required
While it is no rocket science that a used car will be much cheaper than a brand new car, this is not always the case. You might need to consider external financing for the purchase of your used car. Nowadays, leading banks and other lending institutions in India also offer auto loans for the purchase of a used car.
These loans come with attractive interest rates and do not hit your financial stability either. You can also consider taking a personal loan to finance the purchase of your used car. One such great platform to obtain an instant personal loan for financing the purchase of a used car in India is PaySense.
A leading digital credit platform, PaySense lets you borrow up to Rs 5 lakhs in instant personal loans. To get a loan for your use car purchase, all you need to do is download the PaySense app on your android phone. Install and check your eligibility. Select your loan plan by calculating EMIs and loan tenure, then upload your KYC documents. Once the loan is approved, funds will be transferred to your bank account quickly.
- Buy only after a written contract
No matter how pressed you are for time, do not make a purchase without a written agreement. In the written agreement, make sure there is information pertaining to the condition in which the car is being sold, the price at which it is being sold, the effective date of transfer of ownership of the car to the buyer, the insurance details and registration. Also, be certain to complete all registration formalities pertaining to the sale at the earliest once the sale has been completed. This will come in handy in case of any disputes in the future.
Buying a used car can turn out to be not just a prudent financial decision but also one that will fulfill your ambition without causing you to wait for too long. Just be sure that when you set out to make a purchase of a used car, you have done all your research and due diligence. This checklist that we have combined for you will go a long way in helping you make the right decision so go ahead and take the plunge of owning a personal vehicle.
Aahna Gandhi is an enthusiast traveller, writer and a PR Professional. She likes sharing memorable moments from her travels and inspire others to live a life full of wonder. Known for her content, she has worked for travel, technology, lifestyle, health sectors as well as finance.
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