Nowadays, well-known car brands have entered the used car segment and India’s organized used car industry is on the rise. So, you have lots of options. However, you need to be observant and cautious while pursuing those options. Read on to know more about the things to know before buying a used car.
Things to check before buying a used car:
The complexities involved when buying a used car make it even more important to get a thorough inspection of the vehicle. Thus, make sure to go through the points given below in the form of a checklist. Here is a checklist for buying a used car.
1. Check Car Status:
Once you have zeroed in on the car, it is important to pay attention to the smallest of details to arrive at a buying decision. If you are well-versed in the technical aspects of a car, you can inspect the vehicle yourself or take the help of a trusted mechanic. Things may seem normal from the outside, but; A skilled mechanic will be able to pinpoint whether there was a cover-up with regard to the exterior and if the engine, along with other parts, is worth the price.
Here is a list of things to check and inspect regarding the condition of the car before buying a used car.
A look at the upholstery in the car. Check the front and rear seats for any tears or stains. If the vehicle has electronic items like a music system, monitor, etc., try to use it to ensure its functionality.
Take a good look at the vehicle from all angles. At first glance, everything may seem fine, but a closer look may reveal a different picture. Beware of rust and paint damage.
While 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 that the car is placed evenly and confirm that nothing is loose near the chassis.
Tires can be in good or bad condition depending on the usage. You can check the uniformity of the tires related to wear and tear. If the tires are not worn evenly, it can lead to alignment issues, meaning the car may lean in one direction while driving.
A thorough inspection of the engine is recommended. Check for leaks, corrosion, and burst tubes. Also, check the oil and transmission fluid using the dipstick.
If the car is not very old but has major mileage issues, it could be the result of deeper problems. Discuss the mileage in detail with the seller as it is difficult to inspect in one go.
7) Test Drive
Test driving a car will give you a lot of information related to its performance. Be careful while driving on highways, narrow lanes, U-turns, etc. Pay special attention to the brakes. Driving the car for a long time will give you an idea of its acceleration and suspension as well as handling capability.
2. Maintenance Records:
Some car owners keep meticulous servicing records. Receipts filed with them and dates noted. On the other hand, some owners do not give much thought to the maintenance of records. They make 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 about the maintenance history of the car. If you get a well-organized record, you can follow that based on your usage. If you obtain an oral history, you can analyze to what extent the car needs servicing.
3. Check Registration Certificate:
Check the authenticity of the registration certificate of the vehicle. It will have the name of the owner and the details of the car – engine number, chassis number, etc. The 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 is registered. If you want to move to another state, the car must be registered with the Regional Transport Office (RTO) of that state. After purchasing the vehicle, your name should appear on the registration certificate.
Original purchase invoices, 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, then Form 35 and NOC from the financing company are also required. Note that any change in engine displacement or color of the vehicle needs to be specified in the Registration Certificate.
4. Car Insurance:
When buying a second-hand car, the insurance of the old car has to be transferred to the name of the new owner. If the seller doesn’t actively do so, it is the buyer’s responsibility to move it. Legal problems can arise if the car insurance is not transferred in the name of the new owner and the vehicle is involved in an accident or other unfortunate incidents.
Also, the extent of insurance coverage needs to 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, 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 one compulsory third-party policy. Another option is to buy a wide range of self-damage covers by opting for a comprehensive policy.
5. Transfer of No Claim Bonus:
This point 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 the No Claim Bonus (NCB). This bonus may entitle you to a discount while renewing your car comprehensive insurance policy. Such a bonus is linked to the owner of the car and not the car. 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. Therefore, it can be taken into account when the owner sells the old car and acquires a new one.
For example, in the case of used cars, if you are selling your existing car and then buying another car, it can be beneficial for you. If you have a 50% deposit of NCB then you can save a lot of money on car insurance. You can calculate and note down the amount while budgeting for your latest auto comprehensive insurance policy.
Why Should You Transfer Car Ownership?
The details of the new car owner should be reflected in the registration certificate of the car. For that, you have to follow the procedure prescribed by the RTO of your area. In the case of a broker or a used car company, the transfer of ownership process is also done by the broker/company.