A Really Helpful Checklist for Buying a Budget Second Hand Car

As the pandemic continues to rage and change the way people all over the world live their lives, it does not come as a surprise that most Indians are considering buying second hand cars to make commute easy and safe in the coming days. A pre-owned car, especially a budget one, can not only ensure enhanced freedom of movement, but it will also cost less than a new one. Plus, with most financial institutions offering attractive second hand car loans, financing your dream make and model is now a piece of cake.

However, you need to keep this comprehensive checklist handy before making the down payment for the car you have in mind or before you apply for a loan. So, read on.

1. Check the Car’s Condition

   First things first, you need to take a close look at the used car’s condition. Keep in mind that the second-hand vehicle should not only be in running condition, but should also give sufficient value for the money you are investing.

   When you plan to make a visit and inspect the car, make sure you are accompanied by a trusted mechanic so that he can inspect all the major elements such as, engine, wheels, transmission, cooling system, exhaust, and more, in front of you and indicate any fixes or replacements that might be necessary in future.

   Also, a common concern with most second-hand car dealerships is the fact that they might replace original parts of the vehicle from the time you inspect it to the final delivery. Thus, to avoid this, make sure you are well-informed.

Also Read: 7 Money-Saving Tips For Buying A Pre-Owned Car

2. Vehicle Registration

   The next thing you need to do is go through the registration documents of the vehicle carefully. Check with the seller or dealership about how many times the vehicle has been sold previously, and match the findings with the vehicle RC book, which gives a clear indication of the number of times the vehicle has been sold and repurchased. Make sure that all the previous owners of the vehicle have paid their dues to the government, such as road tax, vehicle tax, etc.

   Once you have completed the inspection of the vehicle, ask the seller or the dealership to provide the documents that need to be verified, such as NOC (no objection certificate) from the vehicle loan company, original invoice or purchase receipt, vehicle registration certificate, road tax invoice etc.

    

3. Check Your Vehicle Insurance

   According to Indian laws, in order to drive on Indian roads,you need to have proper vehicle insurance. Now, since, in this case, you are purchasing a used vehicle, it will already have an insurance policy present, and thus, all you have to do is transfer it to your name.

   Before you do so, check these aspects:
    

   • The total amount of insurance cover that is currently available on the vehicle
   • The number of claims that have been made in the past 2 to 3 years
   • The last premium amount paid, and whether all previous dues and claims have been cleared

   
   Once you have checked and fulfilled all these criteria, you need to transfer the insurance documents to your name, and for the same, keep the following handy:
    

   • Proof of delivery of the second-hand vehicle
   • Proof of sale of the second-hand vehicle
   • Request from the seller for transfer of policy
   • New RC book issued in your name
   • Your application to the insurer for transfer of the policy

    

Make sure you keep all these documents ready and submit them to the insurance company within 14 days of purchasing the vehicle. Otherwise, you might attract heavy penalties and fines while driving.

Also Read:A Handy Checklist Of Documents For Used Car Loan Application

4. Check Potential Fixes and Replacements

   As mentioned earlier, one of the most concerning issues with purchasing a used vehicle is meeting the list of all the fixes and replacements which might be needed in the future. Now while it is true that this can be done at a later stage as well, remember that the sooner you create this list, the earlier you will be able to keep aside funds for the said repairs and replacements.

    

   Additionally, you should also check if there is any room for modifications in the future. For example, can you convert the vehicle into a dual-fuel automobile in the future, and thus, extract the most value out of it?

    

5. Check Maintenance Records

   Last but not the least; make sure that you check the maintenance records of the vehicle. This will include a list of instances where the vehicle has undergone timely servicing and maintenance, along with a list of occurrences wherein the vehicle needed repairs due to an accident or malfunction.

    

   Taking a note of all the maintenance functions that have been conducted on the vehicle can help you forecast the charges you will need to incur in the future.This will prepare you mentally and help you to keep aside funds for the same.

    

Also Read: Checklist For Your Pre-owned Car Loan Application

To Conclude

Once you have checked all of the above, compare different lenders to zero in on the best second hand car finance option. The best part about buying a used car is that you can gift a whole new world of comfort to your loved ones without burning a massive hole in your pocket. And as long as you follow this checklist, you will be able to land a good deal without worrying