Used Car Buying Tips

So you consider yourself a novice at cars and have just learnt driving? How about refining your driving skills to gain the necessary confidence. Or you might belong to the tribe that craves for a luxury car but can’t afford to buy a new one. In either scenario a “Used Car” could be an ideal choice. The used car segment in the country had been largely unorganised before Car Manufacturers entered it to offer the necessary choice, convenience and transparency to make an informed buy or sale. Now, of course it has emerged as a big market with Certified Used Cars including warranties and with attractive finance options being available on them.

Still with me and ready for a Used Car! Let me also tell you about a few disadvantages of buying a used car:

Used cars will definitely cost you more to maintain if you compare maintainance costs with a new car. You may have to go for replacement of old tyres, battery, clutch plate etc. Used cars have low reliability and they are susceptible to frequent breakdowns. New cars tend to have advanced and more safety features as compared to old cars.

Well, the advantages outnumber the limitations by a huge margin and if you follow a few tips you can get the best bargain for the Used Car you’re buying.

Set a Budget, Shop for right Match

You may already have a budget in mind so it would be better to have a general idea of the price at which vehicles of the same age and type are available second hand. There are a few websites where sellers list their cars as well as photographs and detailed descriptions and its the easiest and fastest way to find the car of your dreams (or at least its price!). Also keep in mind that the cost of repairing the model, the safety aspects of this particular model and how much the car will cost to insure. You would also need to be flexible. If you’re set on one model, in a specific color, with a certain mileage or specification you may find it hard to get a bargain as you’re focusing on a narrow market.

Communicate with Seller

Once you have found the right car for yourself, you could communicate with the seller to find more about that car. It is essential that you get to see all documents related to the history of cars. You need to be sure about two things: First and foremost that its not a stolen car. The car’s Engine No. and the Chassis No. should be verified with that shown in the RC Book. If the car has met with an accident which involved changing the cars chassis, then the RC Book would have a noting of the new chassis no. You should also make sure that the person who is selling the car actually owns it, and is not trying to sell a leased vehicle.

Get Down to DetailsNext up ensure there are no outstanding liens against the car (for example: an unpaid loan). If there is still an outstanding lien, the car could be repossessed - even if you paid full price to the seller. If it was bought on finance by the seller the following documents would be required for you:

1. NOC (No Objection Certificate): NOC issued by the finance company. This document ensures that the finance company has no claim on the car anymore.
2. Form 35: A copy of this form duly signed by the financier is also needed.

Get Car Inspected

Try also to have an idea of how the car has been used (single hand, daily commuting etc.). Get the car inspected by a car mechanic. In case you are buying it from a dealer, you might not be able to do that. In any case, you can still do some inspection on your own. The following things ought to be kept in mind while inspecting the car.

• The engine should idle smoothly without surging or sputtering, and accelerate from standstill without bucking or hesitating.
• Inspect the chassis of the car. The bodyline will give you an indication whether the car has met an accident or not.
• Look for signs of repainting. Check whether all the body parts are of same colour. Open the trunk, hood and doors. Look for paint specs or over spray-a telltale sign that all or part of the vehicle has been repainted.
• Check the wheel alignment of cars. Uneven wear and tear of tyres-balding on the sides or in the middle-indicate poor alignment.
• Check the condition of battery
• Check whether all the headlights and indicators are working properly
• Check air conditioning for proper operation. Sufficiently heat up the engine to test the efficiency of air conditioner. Check the operations of defroster, heater and fan.

Go for a Test Drive

• Go for a thorough test drive and observe your comfort levels during the ride.
• Does the steering wheel vibrate?
• The engine should idle smoothly without clattering or metallic sounds, or sharp hissing, in the engine compartment. Normal sound is smooth whirring of belts and fan.
• Check the condition of clutch plates
• Study the responsiveness of the Brakes

Negotiate Price

Now you can negotiate the price. It would obviously depend upon the condition of the vehicle. You would also need to ensure that other paperwork of the vehicle is in order before finalizing the deal as it could affect the actual cost of the vehicle.

1. Taxation Book (Tax Certificate / TC Book): This document shows the status of tax paid. The RTO tax is a once in a lifetime tax and should have been paid by the original owner of the car. If the owner of the car has not paid it, it can add up to double digits in thousands, which you will have to ultimately bear.
2. Insurance: Insist on the insurance papers, as these papers are mandatory for any transfer by the RTO. Premium for Insurance is paid on a regular basis and it is advisable to check the due date. Also, ensure transfer of the insurance papers to your name.
3. Invoice: Do not forget to get the original invoice of the car from the original owner. You can know details like engine no., chassis no., date of delivery, delivery dealer and whether the car was financed or not.
4. PUC Certificate: Every car needs a valid PUC certificate. PUC Certificate is valid for a period of 1 year for all new cars and subsequently a certificate has to obtained every six months.

Transfer Ownership

Transferring ownership of the Used Car that you’ve bought comes next. The original owner (Transferer) who is selling the car, must inform the RTO with which the car was registered about this transfer, by sending a letter with information about the new owner (Transferee) within a period of 14 days. In case the new owner falls in jurisdiction of another RTO, then the owner has to inform this RTO by sending a similar letter. The following documents have to be submitted to the RTO to effect the transfer of ownership of the car:

1. Form “TCA” - Intimation of transfer by Transferee (Buyer)
2. Form “TCR” - Intimation of transfer by Transferor (Seller)
3. Form No.29 - Notice of transfer of ownership of vehicle. This form is used to notify the RTO ‘transfer of ownership’ of the car and to obtain confirmation from the RTO.
4. Form No.30 - Report of transfer of ownership of vehicle.
5. Valid Insurance policy
6. PUC Certificate
7. Address proof of the Transferee (Buyer)
8. Evidence of payment of all taxes up-to-date.
9. Form No.28 - Application for N.O.C. and grant of certificate. This form is used to apply for NOC from the RTO for transfer of the vehicle to another RTO’s jurisdiction. This is required when you shift the registration of the car from the jurisdiction of one RTO to another RTO.

Phew! buying a used car is cheaper however you need to be much more careful about checking the car condition, finalizing the deal, and most importantly making sure that all paperwork is squarly done and that the car ownership is tranferred to you. While you want to save, you don't want to get other headaches.

Resources:

• Car Comparison India
• Compare Car Prices, Models and Ratings
• Read Car Reviews

By: Moderator1342 days ago