So, you are buying a car? And you narrow it down to a second-hand car? Smart move, we must say.
India, as we see is observing a paradigm shift. First-time car buyers are now looking for pre-owned cars, which is why the second-hand car market is witnessing an exponential jump in sales over the last few years.
With the ever-increasing new car prices, car ownership has become a very high-cost investment for the common man. Here, a second-hand car comes out as a sensible solution.
For an individual, who is upgrading from two-wheeler or wants a better and comfortable option than public transport, a second-hand car makes perfect sense. A second car is the best option if your requirement is limited to daily home-office to and fro commute.
Why should I buy a second-hand car?
Trust us, It all makes perfect sense.
Consider this, a brand new 2018 Renault Kwid RXE costs ₹3,62,056 on the road, Gurgaon.
The breakup is as follows:
(Prices are tentative and subject to change)
That’s ₹3,62,056 is what you’ll be paying for the brand new car smell.
Now, here’s the deal.
A second hand 2017 Renault Kwid RXL, which is a model upgrade from RXE will cost you around ₹2.7 lakhs to ₹2.9 lakhs on road Period. That’s a saving of almost ₹92,000.
And that’s not all, Fancy a sedan? A premium car? Want more bang for your buck? You can get a C-Segment sedan like a 2014 Ford Fiesta 1.6 CLXI for around ₹2.75lakhs. Which, we say is a deal to go for.
You get a certified pre-owned car
Yes, you heard it right. Gone are those days when you’ll have to haggle with the salesperson to get the wheels of your dreams. Almost every car manufacturer from Maruti, Tata, Hyundai to premium Mercedes, Audi, BMW now have their pre-owned outlets. You’ll get a certified, 105 points checked and inspected used car, with WARRANTY.
Stress-free driving, all along
Picture this; you are in your brand new car commuting to work during peak office hours. It’s choc-a-block traffic, the average median distance between two car bumpers is 5cms. The AC is at full blast, yet you are sweating. What if that taxi scrapes my door? What if the autowala dinges the bumper? A flood of worries swarms your mind.
Case 2, you are in your second-hand hatch, you won’t hesitate much in taking your car through those narrow lanes, would you?
Depreciation takes a break (or brake?)
A used car depreciates at a much slower rate when compared to a new car, and that’s a fact!
It has already seen its fair share of depreciation; therefore, when you take charge of its ownership, you pay an amount much lower than what you pay for a new car.
You pay less for insurance
Insurance is one thing you should not skip on. It comes as a lifesaver, for when your car sees the D-Day. Nobody wants unexpected financial stress.
When we take a new car in perspective, you end up paying an exorbitant amount on insurance, and we are not including miscellaneous charges like file charge and processing fees. But with a used car, you will be paying a fraction of that price.
A certified dealer will even offer you a pre-insured used car. Now that is a saving you don’t want to miss.
What to know before buying a second-hand car?
Where to buy it from?
This question troubles a lot of potential buyers scouting the second-hand car market.
There are online portals like Spinny, Truebil, CarDekho, Car24 which are reliable, consistent and offer you the best price for a car.
Every car listed is thoroughly checked and inspected by professionals for any issue if so. Transparency and Accountability is the idea here.
Then there are the Certified Pre-owned outlets.
You have got Maruti-Suzuki Truevalue, Mahindra First Choice, Audi Approved etc. which are all good alternatives if you have a brand-specific choice.
The third option can be the individual car seller. You can directly approach an interested seller and negotiate with the price. Before committing, take a proper test drive, inspect all the vitals or better, take your local mechanic with you.
Take a good look at all the documentation (RC, Insurance etc.) and make sure, you haggle hard on the asking price.
What year for a car I should go for?
This option does not give you the advantage of pre-ownership inspection so narrow down on an excellent 1st hand individual driven car.
The price of a brand new car drops sharply in the first three years of ownership and after that, it kind of settles. This is what your sweet spot should be. For example, it’s 2018, and you want to buy a used car? Look for a model specifically between 2014 to 2017.
Also, check if the vehicle has an extended warranty. Steer clear of a discontinued model which is only going to be a headache during repairs. A high mileage car is also a concern.
What should be my budget?
A significant factor, when buying a used car.
First, what you’ll need to do is decide on a budget post which, you’ll need to choose what kind of a car you want? A hatchback, a sedan, SUV, luxury? What suits you the best.
If you have brand-specific inclinations, you should sort out your choices accordingly.
Another thing your way is, how you want to buy your car?
You always have the option to pay upfront, but if money’s a bit short in the bank, you can always opt for easy car loans even on second-hand cars.
What about the paperwork?
You’ll have to make sure that all the papers for your used car are in order.
Check the registration certificate, vehicle insurance papers, original purchase invoice, road tax receipt, pollution certificate, and form 32&35 if the car was financed, along with a copy of the NOC from the financing company.
Check, if the vehicle has undergone an engine swap, colour change. Also make a note, if the car has any accidental history.
You could run into some serious trouble if the papers are faulty.
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Conclusion | Second Hand Car
Well, there you go!
You have made up your mind. Here’s everything you’ll need to check before buying the car
- First things first, transfer the Registration Certificate (RC) of the second-hand car in your name. For this, you’ll have to fill out and submit Form 29 & Form 30, issued by the RTO in the jurisdiction you live in. If the car registration is from a different RTO, you’ll need to get a NOC (No Objection Certificate).
- Get the second-hand car insurance policy transferred in your name, or if the policy has lapsed buy a new one altogether.
- Check form 32 & 35 to ensure that there are no pre-existing pending loans on the second-hand car you are buying. If buying a second-hand vehicle purchased by the previous owner on finance, ensure that you get the original invoice for the vehicle. Also, get the NOC from the car finance company.
- Check the vehicle’s PUC (Pollution Under Control) certificate
Last, but not the least, check if the car has a fulfilled service history, look for any significant repairs.
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