The demand for used cars has risen exponentially in the past few years. Purchasing a second-hand car is a lucrative option for first-time buyers who want low-cost options with more features.
The second-hand car market in India has shown a steady surge and is expected to grow to a staggering 6.6 million units in India.
As a result, various non-banking financial institutions have come up with numerous car loans for used cars and bike finance in the market to meet this increasing demand for vehicles.
Buying a used car in India is a big deal as there is a lot to deal with, such as incorrect prices, fraud sellers, missing parts, mechanical problems, warranty, and more.
Five tips to consider while buying a used car
Let us look at a few tips to help you quickly buy a used car.
1. Inspect the car carefully
Some dealers might not tell you about the hidden mechanical defaults in the second-hand car. So, inspect the vehicle and take a look at the exterior and interior of the vehicle.
Check for any external damage, dent, or rust. Under the hood, make sure the engine is original. You can even insist on getting the car checked by the mechanic of your choice.
Furthermore, see the insurance papers, as they can show if the vehicle has had any accidents or claims.
2. Always ask for a test drive.
When buying a new or used car, always ask for a test drive from the dealer to know what you’re buying. If you purchase a second-hand car for its looks and the dealer does not allow you to take a test drive, avoid purchasing it.
This is because only by experiencing how smoothly or roughly the car works will you be able to make an informed decision.
3. Second-hand car finance
If you don’t have the total budget to purchase a used car of your choice, you can always avail yourself of second-hand car finance. Multiple lending institutions provide car loans for used cars with different options.
The interest on such loans is slightly higher than that of a new car. It usually varies from 15 to 18 percent. You should conduct thorough research and choose a loan provider that suits your requirements.
4. Check all documents correctly.
Another crucial tip is to check all the essential documents related to the used car for any discrepancies. Some of the necessary documents you should verify include – the car’s original invoice, RC, finance NOC, and insurance.
5. Avoid buying cars older than 3-4 years.
Lastly, make sure the car you’re buying is not older than 3-4 years. This is because the Indian Government is eliminating vehicles older than ten years.
As a result, many dealers will try to sell such cars at low prices. Besides, it is always a risk of not finding the spare parts for such vehicles, even if the dealer assures their availability.
Buying a car is a dream for many people. So, to make your buying experience excellent and free of regrets, thoroughly follow the tips mentioned above.