Tips for Buying Used Cars in India

Remember the time when your parents bought you your first cycle? I am sure it was a long time ago, but the element of happiness can still be felt today.

We were young and dependent at that age. Speaking of it now, we have come far across as independent individuals who can decide to buy a comfortable car.

But not every time can we buy a new car and hence we think about trying our hands on the used ones. Some of the factors that can really affect the purchase of a used car include its value, features, age, claims or repairs, and purpose. 

10 Things to check before Buying a Used Car in India

1. Know the history of the used car: Try to find out about the history of the used car like its age, a reason to sell and accidents involved. Ask the seller or the company to provide details of the claims, if any. Do your research to find out whether the car has been damaged in the past.
   
2. Check the Pacemaker- the Engine of the car: Engine is the most important part of any car. Make sure that you visually check the engine for any leaks, cracked hoses, corrosion, and belt. Also, examine the oil and transmission fluid for discolouration. In a healthy engine, the oil should be light brown and transmission fluid should be pink or red.
3. Any rust or paint damages: Consider the purchase if the car has big rusted patches. Small chip offs can be ignored if you are getting a good deal.
4. Miles of Run: In comparison to the age of the used car, you should know the miles it has run. It will help to identify or evaluate the wear and tear of the car components.
5. Condition of the Tires: Uneven tires can affect the alignment of the car. You should check that all the four wheels should match evenly. A poorly aligned car will pull either right or left. So take a test drive when you want to check the tires.
6. Review the electronic items: Music system, air conditioner, and electronic display should be working properly. Operate them to verify whether they are in working condition or not.
7. Check to cushion and covers: Car seat covers are really expensive to repair. There should not be any cracks, stains, and cuts in the leather cover.
8. Go for a Test Drive: It is essential that you take the car for a test drive. Choose a route which does not have an even road. It will help you check the brakes, suspension, and acceleration.
9. Examination with a Mechanic: If you are happy with the rest of the things in the car you are buying, the last but one of the most important things to do is a mechanic test. Ask your trusted mechanic to deeply examine the second-hand car and its important parts like a belt, engine, battery, etc. It will be another wise thing you could do before the final purchase.
10. Do not miss to check the papers of the car: Some of the very important documents you need to check are:
    • Check for the Registration Copy of the car and verify that the details mentioned over it are in sync with the car. Note the engine number and chassis number should be correct or else it will mess up things for you at the time of claim.
    • Check for Form 32 and 35, available at the RTO, to know that there should be no pending loans on the second-hand car you are buying.
    • Ask for the No-Objection-Certificate if the car was purchased on finance by the previous owner.
    • Bi-fuel Certification of the car if it has LPG/CNG fittings.
    • Valid Pollution Under Control (PUC) certificate.
    • Service Book to check whether all the road taxes have been paid or not.

After you have examined the car of your dreams, the next very important thing to check for is the insurance policy. You should ask the owner of the car whether he had an insurance policy or not? It will signify you some of the crucial aspects like:

• The owner must have taken care of the car well enough. A responsible citizen will definitely buy a car insurance policy.
• The past claim experiences. In India there is no other way to find it out.
• The need to transfer the insurance policy in your name, if the policy of the second- hand car is still in existence.

Car Insurance is a document to be bought especially if you look forward to avoiding any legal issues where your car can be an accident. The insurance policy protects you from financial liabilities which may arise after a mishap. It is the maximum protection which covers both the car and any injured third party.

In India, it is mandatory to have a Third-Party Liability policy along with the owner-driver personal accident cover. Imagine you came to know that the used car you are buying already has an insurance policy. In such a case, you will have to expedite the transfer of the insurance along with RC transfer of the car.

Don’t know how to get the insurance transferred? Wait before we get there as first, you would need to get the RC of the second-hand car in your name.

How to Transfer the Registration Certificate in your name?

To get the RC transferred in your name, visit the nearest RTO and follow these steps.

• Ask for Form 29 and Form 30. These forms should be filled and duly signed by you as well as the previous owner. 
• Arrange for a NOC from RTO if the second-hand car you are buying is in a separate jurisdiction than yours.
• Submit the forms enabling the local RTO to begin the transfer.

Once the procedure is complete, the RTO will give you a receipt within 15 to 18 days. You will receive a final copy of transferred RC in just 40-45 days.

Coming back to insurance, let us know ways in which we can get the insurance transferred in our name. If you have got the RC in your name but the insurance is still in the name of the previous owner, then it will be of no good use to you. In order to save time and get going with your second-hand car on road, it will be wise if you process the transfer of insurance in parallel. But how to get it done any clues?

How to Transfer the Insurance of Used Car?

The only thing you can do when the insurance policy continues to exist for the second-hand car is to ask for a name change. This change of the details should be made in the insurance copy. Just submit with the insurer receipts of Form 29 and Form 30.

You can either walk in the office of the insurer or contact any insurance agent or a broker. The process will be completed in a few days and cheers!! You have your second-hand car insured.

One should be aware that for a claim-free year, you earn a No Claim Bonus. Now a RC of the used car can be transferred, but the NCB cannot. So, for the remaining period of the policy, the buyer of the second-hand car will have to pay the required difference amount.

What to do when there is no Insurance policy of the Used Car?

There can be a stance when the used car you are planning to buy does not have any insurance cover. So what would you do next? Buy a car insurance policy yourself!

Which insurance cover is best - Comprehensive or Third-Party Liability?

Choosing an insurance coverage for your car, be it private or commercial, completely depends on the owner. As per the Motor Vehicle Act, 1988 the Third-Party Liability cover is mandatory but the Own damage is optional. But it is advisable to choose a Comprehensive Cover as it gives a wider coverage.

You can choose only Third-Party Liability cover of the car when:

• The age of the used car is 10 years or more.
• The use of the car is less hence, less wear and tear. Like you live outside India and use car monthly when you visit.
• You think that you can afford any kind of expenses for the damage to the car.

When everything is done and the car is transferred in your name along with the insurance policy, you are set with lots of excitement and confidence. Now that you own a car, drive it safe and rule the world.