How to buy a used car

Image designed by Freepik

The case for car ownershipCompanies such as Uber, Ola and Zoom cars have pretty much eliminated the need to own a

car.  To be honest, car ownership brings with it a whole of maintenance costs. But you can’t

always rely on cab services or self-drive cars. They aren’t cheap and availability is usually

zero when you need them the most. The jury is out on whether you should own a car or not.

That’s a topic for a different post. This post is however about a list of things you need to

consider, check and verify before buying a used car.

Used or new, buying a car is a big deal. It is in fact easier to buy a new car than it is to buy a

used one. Pre-owned cars need to be perused carefully because the trust factor is

comparatively lower.

You don’t usually know the seller in person, you aren’t sure about the condition of the car,

you don’t know if the vehicle will turn out to be a liability if it ends up costing you a lot of

money in repairs. What if the car breaks down when you least expect and in the middle of

nowhere. These are apprehensions that aren’t associated with newer cars.

With so many factors to consider, it always helps to have some basic understanding about

what to look for in an used car.

So let’s dive right in.

Why do I need a car?You would rather buy a car than get fleeced by auto-rickshaws or cabs. Or you are tired of

relying on public transport to commute. Either ways owning a car gives you some amount of

flexibility and independence (of course at a cost).

Why do I want to purchase a used car and not a new one? What is my maximum budget?

The second question pretty much answers the first one. Budget is one of the most important

aspects of buying a used car. Decide what you can afford and stick to it. Keep in mind also the

maintenance & insurance cost you will incur to keep the car running.

Try not to take a loan for purchasing a used car as the interest rates are at least 3 to 4%

higher than loans for new cars.

Which type of car?Should you buy a petrol or a diesel one? Hatchback, sedan or SUV? The answer to your

question lies in your usage requirement and family size. If you are family of 3 or 4, you may

not need an SUV. Hatchbacks are good enough even for 5 members on short trips.

Will you be using your car everyday to commute to work or just on weekends? How many kms

will you be travelling every day? Also factor in the time spent in traffic jams, fuel price etc. A

diesel car maybe ideal if you’re going to be clocking lots of kms but also check if it fits your

budget.

If your office commute is short or if you are going to use it only during weekends and long

trips, a petrol car would suffice.

It’s also a good idea to anticipate future lifestyle changes, needs and what is most likely to go

with your style.

How old should the car be?It’s always best to pick a car that is 3 – 5 yrs old than go for one older than that. Older cars

are likely to have higher maintenance costs. Cars that have clocked in 20000 to 30000 kms

are great buys but may force you to exceed your budget. Some car owners tamper with the

odometer. You may want to be wary of that.

Companies such as Zoomo, Carwale, CarTrade, CarDekho and branded car dealers sell

certified cars. These companies check for such inconsistencies which a first time buyer may

not be able to spot. They carry out detailed quality checks before listing the car on their sites.

It may be a good idea to check out these sites for used/pre-owned cars.

Where should I buy it from?In the last couple of years a whole lot of companies (mentioned above) have cropped up that

specialize in selling certified used cars. Quikr Cars has also jumped onto the bandwagon

which until recently was only listing cars for sale. These sites give you comprehensive

information about the car on sale in addition to the quality checks performed. We would

recommend that you search as much as possible instead of just looking at one website.

Branded dealers such as Mahindra First Choice, Maruti True Value, Hyundai ‘s H Promise and

Toyota U Trust offer good deals on pre-owned cars. They tend to be a little expensive due to

the fact that they perform various checks on these cars and also replace defective parts.  A

few also offer warranties. Be sure to check out the details of the warranty.

Do also check sites such as OLX and Team-BHP. You might find a gem there.

It would be a good idea to stay away from car brokers because they are known to hike the

price to get as much commission as possible. You moreover are likely to get better service

from pre-owned car listing sites than brokers.

Checking the car (the fun part)You have now made a list of cars you want to check-out. Fix an appointment with the seller

and meet at a convenient location. There are a list of things you need to look out for in an

used-car. We’ve prepared this handy checklist you can print and sign-off to make the

inspection easier.

Download a pdf version of the checklist here – The Used Car Evaluation Checklist

NegotiateOnce you are satisfied with the condition of the vehicle it’s time to negotiate. Sellers usually

tend to overprice the car. It’s up to you to negotiate taking into account factors such as age of

vehicle, distance driven, need for replacements of any parts etc. Don’t rush to close the deal.

Remember, you’ve got to make a calculated decision.

Verify Documents (not so much fun – part 1) Verify the seller’s name against the name on the registration certificate

Verify whether seller is first/second/third owner of the vehicle

Check the state of registration

Make sure it’s the original RC you are looking at & it does not say Duplicate Registration

Certificate anywhere

Verify chassis number mentioned in the RC against the original invoice

RTO tax receipt

Check the insurance type (comprehensive or third-party) and when its going to expire

If the car was financed, check for NOC from lender

Check for complete car service history

Transfer of Ownership (not so much fun – part 2) Have RTO transfer forms and delivery note signed by you and the seller

The seller must handover the following at the time of transfer

Original invoice

Owner’s manual

Copy of RC until you receive the RC in your name

RTO tax receipt

Insurance policy (which must also be transferred to you at the time of purchase)

Service history of the car

Battery warranty documents

Form 28, 29 and 30

Duplicate keys

Finally also insist that the car be serviced at an authorized car service center and cleaned

prior to taking ownership.

A few extra pointers

Never buy a modified car

Don’t buy cars that have been repainted

Avoid cars that you’ll have difficulty finding spare parts and service centers__________________________________________________________________________________

CarServo connects car owners to car service centers in Bangalore. You can find the nearest Maruti Service Center, Hyundai Service Center or service centres for other major brands such as Renault, Chevrolet, Honda, Nissan, Volkswagen etc and book car service online.