The second-hand or used cars market in India is growing exponentially. The primary reason most people opt to buy a used car is that it saves them a fortune. Additionally, there’s a wide range of car models to choose from at affordable rates when buying a used car in India. Moreover, the process is quick and it is easy to secure a loan for second-hand cars as well. Furthermore, retailers offer certain warranties on used cars, which makes the entire process convenient, secure and reliable for the buyer.
In this section, we have enlisted a few quick tips that can come in handy if you are planning to buy a second-hand car any time soon. Here, take a look!
Before you browse several used cars online or in person, make sure that you have a budget in mind. It is pretty much like buying a new car. However, people tend to overspend when buying a second-hand vehicle. So, it is best to have answers to the following questions beforehand:
How long do you plan to use the car before buying a new one?
How often do you plan to drive the car?
How much amount are you ready to spend on maintenance and repair expenses?
Not only do you have to consider the cost of the second-hand car, but also the expenses that will follow after the purchase. Answers to the above question will allow you to set a budget in place before browsing the used car options available in the market.
Once the budget is set, you might want to list down the type of car you need. For instance, if you live in an area with terrible road conditions, you might have to consider buying a car that has a higher ground clearance. If you travel often and carry a lot of luggage, consider buying a multi-purpose vehicle (MPV) or a sedan.
In short, make a list of things you expect from the purchase and then shortlist different models that fall within your set budget. You can read about the top-selling cars in India to choose from on Finserv MARKETS.
After you find a desirable car in your budget, proceed to get the car inspected by a trusted mechanic. Doing so allows you to understand if there are any faults in the car and whether or not the problem is fixable. Further, you can ask the owner to get the issues fixed before finalising the deal. If they refuse, you can negotiate the price of the second-hand car and reduce it even further.
You can also request the car owner to give you a test drive to inspect the functioning of car components. Check whether the headlight, steering wheel, gears, and brakes are highly functional. Also, look for weird noises that the car might make during turns or potholes and otherwise. Understand whether you are comfortable driving the vehicle or not. Doing these small inspections will allow you to make an informed decision.
A car’s history is not limited to knowing the odometer number. You also need to have a complete understanding of different factors that contribute to the car’s current condition. Check the previous servicing and maintenance records of the car. Research on the car model and manufacturing year and understand any recurring issues raised by these car owners.
Check the existing vehicle registration document and insurance papers (if any). Before you transfer the vehicle ownership in your name, ask the owner to settle any pending traffic challan(s) before finalising the deal.
You can read more about how to transfer vehicle ownership at Finserv MARKETS.
Usually, the second-hand car you wish to purchase might have an active insurance policy. If that’s the case, you can simply get it transferred to your name after transferring the vehicle RC. However, if the existing car insurance plan has expired, you will have to buy a new second-hand car insurance plan.
The steps to buy a new second hand car insurance are as follows:
Begin by entering the used car’s registration number and mobile number
Complete the application form and enter the details of the second-hand car
Pick the car insurance plan that best suits your needs
Make an instant and secure online payment
Your new car insurance policy for the second-hand car will be sent to your email address.
Additionally, verify the claim history of the car you intend to buy and penalties raised against it over the last few years. You can read more about second-hand car insurance at Finserv MARKETS.
Once the deal is finalised and you have the vehicle RC and insurance transferred to your name, get the car fixed and deep cleaned before taking it out for your first drive. If your budget permits, you can even give your new car a makeover. Additionally, also get the fluids and oils changed before the first drive.
Here are a few benefits of buying a second-hand car in India:
Affordability is the primary objective of buying a second-hand car. You can buy a pre-owned car of your desired brand and model at a much lesser price as compared to a new car.
The value of any new car depreciates the moment it hits the road. So, a pre-owned car will lose about 50% of its value after 2-3 years. Thus, you can get the second-hand vehicle for a reasonable rate and well within your budget.
If you proceed to buy a second-hand car from an authorised dealer or reseller, be assured that you will find a well-certified and thoroughly inspected vehicle within your budget. Certified, pre-owned vehicles often come with extended warranty and special financing, among other benefits.
Since you might have to buy a second-hand car insurance plan, the premium of the policy is most likely to be lower compared to buying a policy for a new car. You can use the car insurance calculator available on Finserv MARKETS to determine the policy cost for your desired coverage and add-on benefits.
Some of the best second-hand cars in India based on reliability, cost of maintenance, comfort level, and brand value are as follows:
With the above tips in mind, we believe that you will be able to secure the best deals when buying a second-hand car in India. Know that the process is equally exhilarating as that of buying a new car. However, there are a few additional things to check off the list before finalising the deal, such as checking the vehicle documents and inspecting the car condition. Know that buying a used car in India is safe, reliable, and will save you a fortune.
For additional security, cover your second-hand car with a comprehensive car insurance plan. You can browse car insurance plans available on Finserv MARKETS and benefit from features such as cashless claim settlements, 24x7 assistance, hassle-free renewals, and more.
The top five, second-hand cars in the market are as follows:
Maruti Suzuki Swift
Maruti Suzuki Dzire
Maruti Suzuki Wagon R
Maruti Suzuki Alto
Yes. You can buy second-hand car insurance at Finserv MARKETS. The process is similar to buying a new car insurance policy on our platform. You can refer to the steps to buy used car insurance explained in the article above.
You need the following set of documents to transfer the ownership of a car to your name:
Original purchase invoice
Registration certificate (RC)
Pollution under control (PUC) certificate
Car insurance policy papers
Road Tax receipt
No-objection certificate (NOC)
Yes. Used car insurance attracts lower premium rates as compared to buying car insurance for a new vehicle. It is because second-hand cars in India have a lower Insured Declared Value (IDV). This further reduces the overall cost of the car insurance policy, even if the scope of coverage remains the same.