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.