Purchasing a car, whether it’s your first or an upgrade, is a significant decision. While a brand-new car is enticing, a second-hand car can be a practical and budget-friendly choice. In this comprehensive guide, we’ll walk you through the process of buying a preowned car in India.
From understanding the advantages of pre-owned vehicles to navigating the intricacies of ownership transfer, we’ve got you covered.
Is a Second-Hand Car Worth Buying?
Before diving into the details, let’s address the fundamental question: Is a second-hand car worth it? The answer lies in understanding the advantages and disadvantages.
Things to check before buying a Preowned Car in India
Advantages of Used Cars
- Lower Price Tag:- Used cars come with a significantly lower price tag compared to new ones. With a second-hand vehicle, you won’t drain your savings. This affordability allows you to explore better variants or even go for a bigger car without shelling out a lot of money.
- Slower Depreciation:- Unlike new cars that lose value rapidly, second-hand cars depreciate at a slower pace. For instance, a new car’s market value decreases as soon as it is driven out of the showroom. In contrast, a used car comparatively depreciates at a lesser pace, allowing you to get a better resale value if you decide to sell it.
- Lower Car Insurance Premium:- The insurance premium for a used car is calculated based on its age and market value. Hence, a second-hand car attracts a lower insurance premium.
- Lower Loan Amount: - If you wish to buy a preowned car on loan, the borrowing amount will be lower due to the vehicle’s lower price tag. Consequently, your EMIs (Equated Monthly Instalments) will be more manageable compared to EMIs for a brand-new car.
Disadvantages of Used Cars
- Condition and Authenticity:- Ensuring the vehicle’s condition and verifying document authenticity is crucial. Thoroughness during the buying process is essential.
- Limited Warranty:- Used cars often have limited or no warranty, unlike new cars that come with comprehensive coverage
- Potential Repairs:- Older cars may require more frequent repairs and maintenance.
Certified Vs. Non-Certified Used Cars
When buying a used car, you’ll encounter two main categories: certified and non-certified. Let’s understand the difference:
1. Certified Used Cars:
- These vehicles undergo rigorous inspections and meet specific quality standards set by the manufacturer or authorized dealers.
- They come with extended warranties and additional benefits.
- Certified cars are generally more expensive than non-certified ones due to the added assurance.
2. Non-Certified Used Cars:
- These cars are not part of any manufacturer’s certified program.
- While they may not have undergone the same level of inspection, they can still be reliable if well-maintained.
- Non-certified cars are often more budget-friendly.
Best Used Cars to Buy in India
Whether you’re a first-time buyer or a seasoned pro, finding a reliable and value-for-money vehicle is crucial. Here are some top contenders that have captured the hearts of buyers across the nation:
1. Maruti Suzuki Celerio:
- Body Type: Hatchback
- Fuel Types: Petrol, CNG
- Mileage: 26 km/l (Petrol), 35 km/kg (CNG)
- Ex-Showroom Price: ₹5.35 lakh onwards
- Used Car Price:₹4.16 lakh onwards
- The Celerio is perfect for city driving with its fuel-efficient engine and comfortable interior. It comes with both petrol and CNG engine options and features like power steering, power windows, an anti-lock braking system, air conditioning, airbags, fog lights, alloy wheels, and a multi-function steering wheel.
2. Maruti WagonR:
- Body Type: Hatchback
- Fuel Types: Petrol, CNG
- Mileage: 25.19 km/l (Petrol Manual), 24.43 km/l (Petrol Automatic), 34.05 km/kg (CNG)
- Ex-Showroom Price: ₹5.52 lakh onwards
- Used Car Price: ₹4 lakh onwards
- The WagonR offers practicality, space, and good fuel efficiency. It’s a popular choice among used car buyers.
3. Hyundai i20:
- Body Type: Hatchback
- Fuel Types: Petrol, Diesel
- Mileage: 20 km/l (Petrol), 21 km/l (Diesel)
- Ex-Showroom Price: ₹7.07-₹11.62 lakh
- Used Car Price: ₹4.78 lakh
- The i20 combines style, comfort, and performance. It’s a well-rounded hatchback that appeals to many buyers.
4. Tata Altroz:
- Body Type: Hatchback
- Fuel Types: Petrol, Diesel
- Mileage: 18.05 km/l (Petrol), 23.64 km/l (Diesel)
- Ex-Showroom Price: ₹6.45-₹10.40 lakh
- Used Car Price: ₹7.3-₹8.8 lakh
- The Altroz offers a premium feel, safety features, and good fuel economy. It’s a strong contender in the hatchback segment.
5. Renault Kwid:
- Body Type: Hatchback
- Fuel Types: Petrol
- Mileage: 21.07 km/l (Petrol)
- Ex-Showroom Price: ₹4.64-₹6.09 lakh
- Used Car Price: ₹3.43 lakh
- The Kwid is compact, easy to maneuver, and budget-friendly. It’s ideal for city commutes.
Remember to thoroughly inspect any used car before making a purchase. Consider factors like mileage, service history, and overall condition.
Second-Hand Car Buying Guide
Follow these steps to make your used car purchase hassle-free:
- 1. Finalize Your Budget:- Determine the amount you’re willing to spend. Consider not only the car’s cost but also additional expenses like insurance and registration fees.
- 2. Select the Right Car:-
- Lifestyle and Needs Assessment: Evaluate your lifestyle, daily commute, and family requirements. Consider factors like seating capacity, fuel efficiency, and cargo space.
- Conduct Thorough Research:
Brand and Model: Research popular brands and models known for reliability and low maintenance costs.
Mileage: Look for cars with reasonable mileage to avoid excessive wear and tear.
Features: Identify must-have features such as air conditioning, safety features, and entertainment systems.
Utilize Online Platforms and Dealerships: Explore online classifieds and certified used-car dealers. Read reviews, compare prices, and gather information about specific models.
- 3. Explore All Buying Locations:-
Directly From The Owner:
Advantages:
- Potential for negotiation and securing a better deal.
- Direct communication with the seller allows for a clearer understanding of the car's history.
Challenges:
- A time-consuming process as it involves individual negotiations.
- Requires the involvement of a trusted mechanic for thorough inspection.
Neighbourhood Pre-owned car Dealers:
Advantages:
- Convenience of inspecting multiple cars in one location.
- Dealers often provide warranty and after-sales service, offering peace of mind to buyers.
Risks:
- Possibility of odometer tampering or document forgery.
- Prices may be slightly higher compared to private sellers due to dealer markup.
Online Classifieds:
Advantages:
- Wide variety of options available for browsing.
- Convenient search and filter features streamline the selection process.
Caution:
- Verify information provided by sellers and arrange meetings in safe locations to avoid scams.
Online Used Car Dealers:
Advantages:
- Reliability and transparency in transactions.
- Detailed vehicle history and inspection reports provide comprehensive information to buyers.
Benefits Over Traditional Dealerships:
- Avoidance of pushy sales tactics commonly associated with traditional dealers.
- Access to financing options and additional services for a hassle-free buying experience.
- 4.Testing The Second-hand Car:-
Importance of Thorough Test Drive:
- Assess comfort, handling, and noise levels to ensure suitability for your needs.
- Evaluate acceleration, braking, and suspension for overall performance of the pre-owned car for sale.
Key Aspects to Evaluate During Test Drive:
- Engine performance, including responsiveness and smoothness.
- Steering responsiveness and stability.
- Brake effectiveness and consistency.
- Suspension comfort and noise levels over various road conditions.
Check for Oil Leaks and Mechanical Issues:
- Inspect under the hood of the pre-owned car for any signs of leaks, unusual sounds, or visible damage indicating potential mechanical issues.
- 5. Pre-Purchase Inspection:-
Verification of Relevant Car Documents:
- Ensure all documents are genuine and match the seller’s details to avoid legal complications.
Inspection Checklist:
- Meter Reading Accuracy: Confirm odometer reading matches the advertised mileage.
- Body Condition: Check for rust, dents, scratches, or any signs of damage.
- Exhaust Emission: Ensure there are no unusual emissions or smoke from the exhaust.
- Tire Condition and Wheel Alignment: Inspect tire tread depth and ensure wheels are properly aligned.
- Suspension Health: Look for signs of leaks or damage to suspension components.
- Battery Functionality: Check battery condition and connections for signs of wear or corrosion.
- Air Conditioning Operation: Test the air conditioning system for proper functionality and cooling efficiency.
- Lights and Electrical Components: Verify all lights, indicators, and electrical features are in working order.
- 6. Document Check
Before finalizing the purchase of a second-hand car, it’s crucial to verify all relevant documents to avoid any legal complications and ensure a smooth ownership transfer process. Here’s why document verification is essential:
- Importance of Verifying Ownership and Other Documents: Verifying the authenticity of ownership and other essential documents is vital for several reasons:
- Avoid legal complications: Ensures that the car is not involved in any legal disputes or pending issues.
- Confirm ownership details: Verifying ownership documents like the Registration Certificate (RC) ensures that you are dealing with the rightful owner of the car.
- Essential Documents to Check: Make sure you have the following documents in order before finalizing the purchase:
- Registration Certificate (RC): This document serves as proof of ownership and vehicle registration with the Regional Transport Office (RTO).
- Insurance papers: Check the validity and coverage details of the vehicle's insurance policy.
- Pollution Certificate: Ensure that the car meets the necessary emissions standards and has a valid Pollution Under Control (PUC) certificate.
- Road Tax payment receipt: Verify that the road tax has been paid up to date to avoid any legal issues.
- No Objection Certificate (NOC) if applicable: If the second-hand car was purchased with a loan, ensure that the lender has no objection to the ownership transfer.
- 7. Explore All Payment Options
When it comes to financing the purchase of a used car, exploring different payment options can help you make an informed decision. Here’s what you need to consider:
- Financing Options:
- Compare interest rates from various banks and financial institutions to find the most favorable terms.
- Evaluate upfront payment benefits: Some lenders offer lower interest rates or other incentives for larger upfront payments.
- Online Dealerships for Loan Assistance: Many online platforms like Bir Credit Solutions offer seamless used car loan processing services, making it convenient to finance your second-hand car purchase. These platforms assist with loan applications and approval processes, saving you time and effort.
- 8. Transfer of Ownership Documents
Once you’ve finalized the purchase, it’s time to transfer ownership of the car officially. Here’s what you need to do:
- Procedures at the Regional Transport Office (RTO):
- Complete the necessary forms for ownership transfer as per the RTO's requirements.
- Pay any applicable transfer fees to initiate the ownership transfer process.
- Required Documents: Ensure you have all the necessary documents ready for the ownership transfer of the used car:
- Original RC: Submit the original Registration Certificate for the transfer process.
- NOC: If the car was purchased with a loan, obtain a No Objection Certificate from the lender.
- Sale transfer form: Both the buyer and seller need to sign the sale transfer form provided by the RTO.
- Vehicle chassis number imprint: Provide the chassis number imprint as part of the transfer process.
- Insurance papers: Submit the insurance documents for verification.
- Identity proofs: Carry valid identity proofs of both the buyer and seller as required by the RTO.
Remember to follow all legal procedures and ensure that all documents are in order to complete the ownership transfer successfully. With these steps completed, you can enjoy your new ride with peace of mind.
- Additional Tips:
- Research: Read reviews, compare prices, and gather information about the specific model you’re interested in.
- Vehicle History Report: Obtain a vehicle history report to check for accidents, thefts, or outstanding loans.
- Trustworthy Dealers: Buy from reputable dealers or certified pre-owned car dealers.
- Test All Features: Test lights, air conditioning, audio system, and other features during the test drive.
- Warranty and Service: Inquire about any remaining warranty and available service packages.
With the right approach, you can find a reliable and cost-effective vehicle that suits your needs.
- Conclusion
Buying a used car requires diligence and research. Consider your needs, budget, and preferences to find the perfect second-hand vehicle. Remember, a well-maintained second-hand car can offer excellent value for money and serve you well on Indian roads .
- Ready to find your perfect match? Buy pre-owned cars at Bir Credit Solutions.