First Time Buyer’s Checklist
Before it comes to the process of buying a used car, the biggest challenge is selecting the car you need to buy.
When you are buying a used car, it is possible to get swayed very easily. For example, when you go to a dealership you might see a 7-year-old Hyundai Verna for 7 Lakhs and standing next to it you’ll see a 4-year-old Honda Accord (which is a far more premium car) for 9 lakhs. You might convince yourself to spend that extra 2 lakh and pick up an Accord but the cost of running and maintaining an Honda Accord is far higher than that of Hyundai Verna. In the long run, you’ll end up spending a lot more money on used car’s maintenance.
Check the used car’s condition
Despite being a used car, the vehicle you are considering should be in good running condition, and must be good value for money. Take the vehicle for a test drive and get all major systems such as engine, cooling, transmission, wheels, etc by an expert or checked by a trusted mechanic. These checks will help you ascertain whether the car is as well-maintained as the seller claims. Further, you can plan (10% of value of used car) for unavoidable repairs and maintenance and include the same in your budget.
Tip: Ensure that you carry out a thorough check when you go to take the delivery of your vehicle as well. This is important because a dealer might replace some of the components from your seeing of the vehicle to the delivery of the vehicle- for example – he might replace new brake pads with old ones.
Registration documents
Is the seller the real owner of the car? Is this the first or the second time it is being resold? The Owner Serial Number in the RC book or smart card indicates the number of times the car has been sold. Has the owner paid all dues, including road tax? Ensure the seller provides you with other papers that need to be verified, including the original invoice, NOC from the car loan provider, and road tax receipt.
The car’s transfer is effected when you and the seller sign on RTO Forms 29 and 30. Further, the seller must submit Form 28, which is the NOC for transfer of the car.
Car insurance
Tip 1: Check the car’s insured value in the policy, It will be a useful benchmark during price negotiations.
Tip 2: Track the No Claim Bonuses over the past 2-3 years. Frequent claims may imply frequent accidents requiring repair and maintenance to the vehicle.
Tip 3: Get the seller’s car insurance policy transferred in your name or buy a new policy within 2 weeks of the date of transfer of the car.
Not doing above may lead to your insurance claim being rejected in case of any accident or mishap. Only claims related to third parties will be approved under the deemed insurance policy transfer of the law.
Documents required
- Proof of sale of the car
- Proof of delivery of car to your possession
- New RC book issued in your name
- Request from the seller for cancellation of policy
- Your application for transfer of the policy
Potential modifications
Can you convert the car into a dual-fuel automobile for example CNG? Can you opt for upgrades for greater comfort, safety, and value? Older vehicles may come cheap but may be impossible to upgrade. A relatively new model is preferable, especially if it comes at an affordable price as compared to the used one.
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