Things to Check When Buying a Used Car
The Indian pre-owned car market is huge. Whether you are buying a used or a new car, your first four-wheeler is special. However, the procedure to purchase a pre-owned vehicle may be complex and overwhelming.
Here are five things you must check before you opt for a used car:
- Do a thorough inspection of the vehicle and papers
Even if you are buying a certified pre-owned car, it is recommended to have it inspected by a trusted mechanic. Checking the filters, brakes, and tires will allow you to make an accurate decision. Additionally, check the insurance papers to see if there were any accidents or claims.
- Ensure the transfer of the registration certificate (RC) book
Make sure that the previous owner and you sign Forms 29 and 30, which are needed for the transfer of the RC book. Also, you need to find out if there is an existing new or second-hand car loan. If the owner had purchased the car with a loan, ensure you collect the original invoice and procure the no-objection certificate (NOC) from the lender.
- Buy insurance
You will need an auto insurance policy to transfer the RC book to your name. You may change the name on the existing car insurance policy. Alternatively, you may buy a new policy in your name, which may be negotiated as per your requirements.
- Transfer the no claim bonus (NCB)
The NCB is available for the owner and not the vehicle. Therefore, you can transfer the existing insurance policyto your name but not the accumulated NCB of the previous owner. In case you have accrued NCB on your previous vehicle, the insurer will provide an NCB reserving letter, which is valid for three years. You may use this to avail of a lower premium on the insurance policy.
- Clean and fix the car
You need to get the car’s interiors and exteriors cleaned. A well-maintained vehicle gives longer life and it is advisable to change the oils and fluids regularly. Any defective sparks or plugs, rusting, and wear of the trunk needs to be fixed.
Today, dealers provide certified cars and have tie-ups with financial institutions for affordable used car loan interest rates that make it easy to buy a pre-owned vehicle. Choosing a loan from a reliable and reputed lender like Mahindra Finance offers several benefits. Some of these include a higher loan amount of up to 90% of the price, longer and flexible repayment duration, minimal documentation, and competitive used car loan rates.
When you apply for a used car loan, in addition to the interest rate and processing fees, you need to inquire about the other applicable charges, likethe prepayment penalty, which increases the used car loan fees.