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Tata Capital > Blog > Loan for Vehicle > 4 Step Guide to Buy a Used Car in India

Loan for Vehicle

4 Step Guide to Buy a Used Car in India

4 Step Guide to Buy a Used Car in India

Looking to buy a second-hand car? Read on.

While a used car loan calculator will help you figure out your potential EMIs, know the process of buying a pre-owned four-wheeler in India with this step-by-step guide.

Conduct research

India’s used car market has various models such as hatchbacks, premium sedans, SUVs, and more to choose from. You must select a car aligning with your lifestyle and needs. If you use a used car loan, find out whether your lender finances the model of your choice.

Before selecting your lender, compare multiple loan offers, interest rates, tenures, and EMI options. Don’t forget to check how much of your car’s value the loan is worth. With Tata Capital, get loans of up to 95% on your car value.

To close the loan comfortably, decide how much you can repay monthly using a used car loan EMI calculator in advance.

Additional Read: 10 Best Used Cars to Buy Under 5 Lakhs in 2021

Explore buying options

Buying optionProsCons
Directly from the ownerSpeak directly to the seller and negotiate the priceA car owner might not be able to answer technical questions A deal made directly with the owner does not provide any service warranty.  
Certified dealerships of pre-owned carsEnsure quality and provide service warranty.Costlier than other options
Online classifiedsBrowse hundreds of listings via a website or mobile app  Information or photographs provided by users might be incorrect or forged
Online used-car retailersProvide authentic information, quality checks, guarantees, and service warrantiesSecure paymentsServices might be unavailable in some locations

Inspect the car

Insist on a test drive to assess the working condition of the car. Drive for at least 5 kilometres through different roads and inspect the car for the following issues.

  1. The engine should start immediately and shouldn’t generate strange noises.
  2. The car should move without jerks, and gears should shift smoothly.
  3. If the steering vibrates, it’s a deal-breaker as there may be a problem with brake rotors or tire alignment.
  4. The car shouldn’t halt with a jerk or swing sideways when brakes are applied.
  5. Ensure that there are no oil leaks from the engine.

Check the documents                                  

  • Registration Certificate: The RC provides information about the car’s authenticity and the state where it was registered. The engine and chassis numbers should be the same on the RC and the vehicle.
  • Insurance: Check the insurance document for past accident claims.
  • PUC (Pollution Under Control) certificate: It ascertains the fitness of a car.
  • Road Tax Receipts: If the road tax hasn't been cleared at the time of purchase, you can bargain for the price.
  • No Objection Certificate (NOC):  If the car was previously purchased with a loan, ensure that it has been repaid.  Ask the seller for a copy of the lender-issued NOC.

Additional Read: When is the Best Time to Buy a Used Car?

Over to you

Follow these steps to bring your second-hand car home.

Does your pre-owned car accommodate perfect features and deliver excellent mileage, but you’re falling short on funds? Avail of a used car loan with Tata Capital. Get amounts up to Rs. 50 lakhs.

We offer competitive used car loan interest rates, starting at15%. Connect today!

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