Key Points To Consider Before Buying A Used Car In IndiaBy
Are you looking to buy a second hand car in India? The used car market in India is already quite big and growing rapidly. India’s largest car maker’s used car business is growing at a rate identical to new car sales. Maruti Suzuki sells one in three new cars through the exchange of an old one.
In the used car market, for every 10 new cars sold, 22 used cars are finding buyers. But it is still not a completely regulated market, so buyers have to be extra careful, as scams are pretty common when it comes to second hand cars. Fortunately, though, a vast majority of used car sellers are honest and can be relied upon. The Indian used car market is growing at 15 per cent and is expected to double by 2020.
Here we discuss some of the important points to consider before buying a used car in India.
Who should you buy a second hand car from?
Individual sellerThis is the first question that you will need to consider. You can buy from an individual seller by connecting with them on free car classifieds. The advantage of buying from an individual seller is that there is no commission to be paid to a middleman. The process is slow and time consuming, but your chances of getting a car at a lower price is better this way. Just be sure to take a mechanic with you to see the car before completing the transaction, to make sure that you are not cheated.
A pre-owned car dealerThe pre-owned car dealer handles all the paperwork related to the process such as the transfer of RC and car insurance in your name, but the cars that are sold by them are not exactly the cheapest in the used car market.
Also, when buying from the pre-owned car dealer, insist upon buying a car that is still in the name of the original owner, and not one that has already been transferred into the ownership of the car dealer.
The second option would make you officially the third owner of the car, and would make it harder for you to sell the car again in a few years time. So that would bring down the resale value.
Also, find out if the car dealer offers a warranty on the car. Most pre-owned car dealers offer a 6 months to 1 year warranty on a car.
A used car from a car companyMany automobile companies have started their own pre-owned car outlets, because of the huge demand for used cars in India, such as Maruti Suzuki’s True Value, Hyundai’s First Advantage and Mahindra & Mahindra’s First Choice. Even luxury car brands such as Mercedes and BMW have their own used car outlets in India.
Buying a second hand car from a car company is the safest option available to you. All the checks are performed by the company and the paperwork is always in order and vetted by them. Most car companies offer a warranty of up to one year on the used car, as well as up to one to three servicing for free.
You can exchange your existing car with them, if it happens to be from the same company and get a discount on your used car from the dealer. Your interests are well protected and there’s little or no chance of anything going wrong in this process.
What about the documents that you need to look at when buying a used car in India?
Regardless of who you are buying the second hand car from, whether from a car dealer, individual seller or company, here are some of the documents that you must ask for.
Registration Certificate (RC) – The RC is the most important document that you should ask the seller for. It provides important information about the car such as the engine number and the chassis number. If the car has been registered in another state, you will need to get it registered in your own state. Also, find out if it’s an original RC or a duplicate one, if it’s the latter, ask the seller why.
Insurance – You will need to get the car insurance transferred in your name. So find out from the seller if he has been paying the premiums on time. Also find out if the seller has ever claimed car insurance and if the car was involved in a car accident.
Form 32 & 35 – If the previous owner had taken a loan to buy the car, ask for Form 32 and 35, which is a no-objection certificate from the financing company that states that the car loan has been paid off. If not, you will be the one liable to pay the lender.
Road tax receipt – Find out if the car seller has paid the road tax receipt and ask for a copy of the document. If the road tax hasn’t been paid, you will be held liable for a penalty of over Rs. 25,000.
Car purchase invoice – Demand a sale receipt from the seller. If you buy a car from dealer, this is not a problem as you will be given a printed bill.
These are some of the considerations to be made when buying a used car. Do your due diligence before buying a second hand car, and hire a trustworthy mechanic to closely examine the car for you before purchasing it.