Buying A Secondhand Car? Follow These Tips Before Your Purchase

Published On 13 Nov 2019 By InsuranceDekho

Here is your complete guide for buying a secondhand car.

The first vehicle is a big venture in anyone's life, and no one bothers much, whether it is a new or used car. The market demand for a used car is catching the eyeballs in the slowing progressing automobile industry in the country. So what has lured the customers to purchase the second-hand vehicle? As per the reports suggested by IndianBlueBook, people are getting a fair value for money and this is the prime reason why they prefer a preowned car over a new car. Though this deal can go wrong if buyers are not sagacious enough to look at certain factors like transfers, registrations, insurance woes, and a stack of paperwork. This can be a real struggle, and you end up buying a liability instead.

Factors To Do Before Buying A Secondhand Car

Whenever someone prefers to buy a used car, the apparent reason turns out to be the financial constraints, and we appreciate the move of the buyer for making an effort to save that extra money. A preowned car does not always mean it will have poor functioning features. Some cars provide durable engine services even after years of purchase. Hence, if a purchaser takes a small initiative to remain cautious about certain parameters than a used car can be a blessing as well.

Make an in-depth inspection of both the car and its papers

It is indeed a hectic task to carry out, but if you are buying a second-hand car, consider doing an in-depth inspection of the car. For this purpose, you can get the help of your trusted mechanic so that the hitches are fixed before the purchase. To determine the performance of the car, check the filters and engines. Some of them require regular oiling and cleaning, and this can be a quick judge to examine how well the car has been maintained. Get these changed if there is a requirement. Check under the hood to detect the dents, damage or rust as these indicate poor maintenance of the car.

Besides, some paperwork needs to be probed like vehicle insurance, No Claim Bonus and registration certificates. The insurance documents will instantly indicate the occurrence of any accidents along with no claim bonus percentage applied. Higher the NCB, better it is for the user. You can check and match the engine number and chassis number with that mentioned in the registration certificate.

Request for Test Drive

In order to get the vehicle as per your choice and preferences, you must spend some time with the wheels of the car. Initially, start with the brakes and clutch of the used car. Request for a test drive and see whether these are appropriately functioning or not. At the time of driving notice whether there is any vibration or unwanted squealing sound coming from the brake pedal. If the brakes are pulsating, it means the rotors need a replacement. You need to see the conditions of the tyres as well, and they should be worn evenly, and the surface for feathering should also be perfect. Additionally, it is wise to research thoroughly on the used car and know about the availability of its motor parts and accessories. This can help you to make a safe purchase.

Transfer the Registration Certificate (RC) of the used car in your name

Registration Certificate (RC) is an official document that states that a vehicle is registered with the Indian Government. Transferring the RC is a vital step, so the purchaser needs to start this with filling and submitting Form 29 & Form 30, issued by the RTO in the jurisdiction of your locality. It has to be signed by both the previous owner and the one intending to purchase. If the jurisdiction happens to be different from yours, then a No Objection Certificate (NOC) from that jurisdiction will help to catalyse the process further. The local RTO start the transfer, and the receipt copy will be obtained after 10-15 days and the changed name RC copy after 40th-45th day. These copies or the receipts work as evidence of the transaction in the interim period.

Moreover, other details that should be inspected along with RC are Form 32 & 35 to ensure whether any pre-existing pending loans are there on the vehicle or not. Try to secure the original invoice copy of the used car accompanied by the NOC of the car finance company. Other documents entail the service book for checking the road tax receipts with the latest payment dates, proper Pollution Under Control (PUC) certificate and Bi-fuel certification in case the car is LPG/CNG fitted.

Change the used car insurance in your name

The new owner must have a valid insurance policy under his name to get the registration transferred. It can be worked in three ways and have used car insurance in your name.

Sellers, along with buyers, often have this misconception that the previous policy is valid even if the car is sold. However, this can be transferred in the name of the current owner using a photocopy of the receipts of Form 29/30. Contacting the insurance company, an agent or broker will aid you in the process.

In case you want to start a new journey, then it is better to apply for new car insurance. This makes it more transparent without carrying additional baggage from the previous owner. Sometimes, the previous car owner has an invalid insurance policy, and in such circumstances, the new owner has to apply for a valid car insurance policy.

Transfer the No Claim Bonus (NCB)

No claim bonus (NCB) is the reward offered in terms of discount in the next premium if the owner hasn't made a single claim during the tenure of the car insurance policy. So, in the context of a car insurance policy, the insurance can be transferred, but NCB is not applicable to the new owner. The difference in amount for NCB has to be bored by the new owner for the balance policy period. This NCB can be used by the existing owner if he purchases a new car. So, if we look at the aspect of NCB, it is better to buy a fresh car insurance policy in your name.

We hope that the above-mentioned points have given you a clear insight regarding the purchase of a used car, and you will consider them subsequently.

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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