The used car market in India is bigger than the new car segment. The affordability of second-hand cars makes these a popular option. Furthermore, you may buy a used car to hone your skills if you have just started driving. There are a large number of options when you look for a second-hand car. Here are five things you should consider while buying a pre-owned vehicle.
- Car quality
Although a used car may not be in good condition as a new vehicle, it must be in decent condition. You must check the car’s condition in person by taking it for a test drive and seek assistance from an experienced mechanic.
2. Insurance papers
The insurance papers will help you understand if the car has undergone any repairs or has been involved in an accident. It will also allow you to understand the no claim bonus (NCB) benefits, if available. When you look at the insurance papers, ensure the chassis and engine number match. Once you finalize the deal, it is important to transfer the insurance to your name. However, remember that you need to transfer the insurance before the registration certificate (RC) is transferred to your name.
3. Registration certificate
The RC is the document that proves the ownership of the car. When you buy a pre-owned car, you must change the RC to ensure the ownership is transferred in your favor. You will have to submit forms 29 and 30 to the road transport office (RTO) to change the RC.
4. Car loan
The previous owner may have taken a loan on the car. This information is available from the insurance policy. If there is a loan, you need to procure the original invoice and a no-objection certificate (NOC) from the lender. This is important, especially if you are also planning to avail of a .
5. Other documents
An important but often overlooked factor is the service records. The service book will show if the services have been done on time. Additionally, you must check if the road taxes have been paid. The car must also have the pollution under control (PUC) certificate. All these are important when you buy a pre-owned car, especially through a second-hand car loan.
Financial institutions offer such loans both online and offline. The entire procedure is quick and hassle-free, and completed in a short period of time. The documents needed for the loan are minimal, thus ensuring you have no difficulty arranging for these. Contrary to popular belief, the used car loan interest rates are affordable with a flexible repayment schedule, thereby ensuring you have no financial difficulty servicing the same.