in india used car Its prevalence has increased. The used car market is growing day by day. Some people buy a used car to improve their driving skills before buying a new car, while others opt for a used car due to budget constraints. Whatever the reason for buying it, a car is a car and often, it is loved by its owner. This desire to own a car has paved the way for the development of the used car market. You can buy a used car or a pre-owned car from an individual seller (regular car owner), a broker or company. But whenever you buy a used car, there are a few things you need to keep in mind.
Keep these things in mind before buying a used car
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Check the condition of the vehicle
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Service record
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Verification of registration certificate
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Car insurance
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No Claim Bonus Transfer
Check the condition of the vehicle
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Once you’ve chosen a car, it’s important to pay attention to the smallest details in reaching a buying decision. If you are well versed in the technical side of a car, you can check the car yourself or take the help of a trusted mechanic. Although things may seem normal from the outside; A skilled mechanic will be able to tell if something is hidden externally and if the engine is worth the price along with other parts.
car interior
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Check out the interior of the car. Check the front and back seats for any cracks or stains. If the car has electronic items like music system, monitor etc., try to find out its working condition.
Car exterior
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Look good from all angles of the car. Things may look good at first glance, but a closer inspection may reveal a different picture. Beware of rust and paint damage.
Inspection of car framing
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While it’s important to examine the car closely, taking a step back and inspecting the car’s framing can tell a lot about the car. Check that the vehicle is level and that nothing is loose near the chassis.
Tire inspection
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Tires can be in good or bad condition depending on usage. You can check the uniformity of the tire with respect to wear and tear. If the tires aren’t worn evenly, it can cause alignment problems, meaning the car can roll to one side while driving.
the engine
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A thorough check of the engine is recommended. Check for leaks, corrosion and broken tubes. Also, check the oil and transmission fluid using the dipstick.
Mileage
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If the car is not very old but has high mileage problems, it could be the result of a deeper problem. Discuss the mileage in detail with the seller as it is difficult to inspect at once.
test drive
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Test driving the car will give you a lot of information regarding its performance. Be careful while driving on highways, narrow lanes, taking U-turns, etc. Pay particular attention to the brakes. A long drive will give you an idea of its speed and suspension as well as handling capabilities.
Service record
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Few car owners maintain meticulous servicing records. They have the receipt and date marked on them. On the other hand, some owners don’t care much about record keeping. They keep a mental note of the number of visits to the service center in a year and the type of service.
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Have a detailed chat with the seller about the car’s maintenance history. If you get a well-organized record, you can track it based on your usage. If you get a verbal history, you can analyze how much servicing the car needs
Verification of registration certificate
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Verify the authenticity of the vehicle registration certificate. It will contain owner’s name and vehicle details – engine number, chassis number etc. 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 vehicle is registered. If you want to move to another state, the vehicle needs to be registered with the Regional Transport Office (RTO) of that state. Your name should appear on the vehicle registration certificate after purchase.
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Original purchase invoice, insurance, road tax receipt and pollution certificate are other documents that need to be checked while buying a used car. If the vehicle is financed, Form 35 and NOC from the financing company are also important. Note that any change in engine displacement or color change of the vehicle must be mentioned in the registration certificate.
Car insurance
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When buying a second-hand car, it is necessary to transfer the insurance of the old car to the name of the new owner. If the seller does not actively do so, it is the buyer’s responsibility to transfer it. If the car insurance is not transferred to the name of the new owner and the car is involved in an accident or any other such unfortunate incident, legal problems can arise.
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Also, the amount of insurance coverage should also 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 your existing insurance policy, suitable car insurance add-ons can be considered at the time of renewal.
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You can also choose to cancel 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 a compulsory third party policy. Another option is to buy a comprehensive level of personal loss cover by opting for a comprehensive policy.
No Claim Bonus Transfer
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This thing is related to car insurance. NCB is a bonus. This is a reward for not making a claim during the policy term. Hence, it is known as No Claim Bonus (NCB). This bonus can get you a discount while renewing your car comprehensive insurance policy. Such bonuses are linked to the owner of the vehicle, not the vehicle itself. The No Claim Bonus can be transferred from the owner’s old car to the same owner’s new car but not from the seller to the buyer. Hence, this can be taken into consideration when the owner sells the pre-owned vehicle and transfers to a new vehicle.
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For example, in case of second-hand cars, it can be beneficial for you if you sell your existing car and then buy another car. If you have 50% NCB deposit, you can save a lot of money on car insurance. You can calculate and note that amount while budgeting for your latest vehicle comprehensive insurance policy.
Why should you transfer a car name?
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The details of the owner of the new vehicle should be reflected in the vehicle registration certificate. For this, you have to follow the procedure prescribed by the RTO of your area. In case of a broker or a used car company, the ownership transfer process is also handled by the broker/company.
How old is the car?
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Generally, cars can break down after five years. After a few years, the old car may need repairs and its maintenance costs may add up. The car is likely not used much, but if the car was manufactured five years ago, would spare parts be readily available? In comparison, one can buy a new car and not get the best use out of it, but buying a used car without a long-term plan in mind can be counterproductive. Think well.
financing
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Whether buying a new car or an old car, costs matter. Like every big expense, it requires planning. Loans, interest rates, exchange value of a used car, etc. are conditions that should be thought about in detail before buying a used car. If you plan to buy a used car for ‘x’ amount, how much would you invest in repairing it if needed? Are you planning to customize it or add accessories to it? What is the amount of this additional cost? Here are some questions you need to know about efficient financial management when buying a used car.
