For many individuals, a pre-owned car is not just a more affordable alternative to a new vehicle but also an opportunity to own a model that they might not afford when new. However, there are multiple factors to consider before buying a second-hand car.
This is because, unlike new cars that come straight from the showroom with warranties and the assurance of untampered quality, second-hand cars carry a history. If not inspected thoroughly, it can lead to unforeseen expenses and frustrations later.
To help you make an informed decision, we've created this list of essential things to check when buying a used car.
Things to check before buying a second-hand car
#1 The car's condition
The first thing to check when buying a used car is its condition. Start by carefully examining the car's exterior. Look for signs of rust, dents, scratches, alignment of doors and windows, etc. Then, check the interior upholstery for tears, stains, or excessive wear. Inspect the dashboard for any cracks and ensure all switches and features are operational.
Once you're satisfied, move to the engine to check for any leaks, rust, or corrosion. A car’s engine and related components are its heart and soul. So, carefully look for any makeshift repairs or modifications that could affect the car's performance. Don't forget to examine the tire condition and test all electricals.
#2 Registration and maintenance documents
The car's registration and maintenance documents are some of the most important things to check when buying a second-hand car. These documents provide essential information about the car's history, ownership, and legal status.
-Registration Certificate (RC): The RC is the primary document that proves the car’s registration with the Regional Transport Office (RTO). Verify that the car's registration number, engine number, and chassis number on the RC match those on the vehicle. The RC also includes information on the car's make, model, and year of manufacture.
-Service records: These records give insight into how well the car has been maintained. These records should detail the car's service history, including dates of services, types of services performed, and any major repairs or parts replacements.
#3 Other relevant documents
Besides the registration and service records, you must also check other documents like:
-Insurance policy: Verify that the car has a valid insurance policy. Check the policy’s expiry date and make sure there are no lapses in coverage. You can also review the insurance history for any past claims, which can indicate previous accidents or damages.
-Pollution Under Control (PUC) certificate: This certificate ensures that the car meets emission standards. A valid PUC certificate is mandatory for all vehicles on the road.
-No Objection Certificate (NOC): If the car is from a different state or RTO jurisdiction, make sure the seller provides an NOC. This document is crucial for re-registration in a new state.
-Loan clearance certificate: If the car was purchased on a loan, ask for a loan clearance certificate or no-due certificate from the financier. This indicates that all dues have been cleared.
-Road tax receipts: Verify that all road taxes have been duly paid. Non-payment of road taxes can lead to penalties and legal issues.
-Original purchase invoice: While not always available, the original purchase invoice can be valuable, especially for verifying the car’s age and model.
#4 Transfer documents
When purchasing a second-hand car, handling the transfer documents correctly is crucial. These documents are necessary to legally transfer the vehicle's ownership from the seller to you. Here are some important things to know before buying a used car:
-Forms for transfer of ownership: In India, you typically need to fill out and submit Form 29 and Form 30 to the Regional Transport Office (RTO) when buying a pre-owned car. Form 29 is a notice of transfer of ownership, which needs to be signed by both the seller and the buyer. Form 30 is a report of transfer, which also requires both parties' signatures. These forms officially record the transaction and initiate the process of transferring the car's registration.
-Sale agreement: This is a written agreement between you and the seller, detailing the sale terms. It should include the car's make, model, registration number, engine and chassis numbers, sale price, and both parties' names and addresses. This agreement acts as legal proof of the sale and purchase.
-Insurance transfer: You must also ensure that the car's insurance policy is transferred to your name. For this, you need to contact the insurance company with a copy of the ownership transfer documents and the insurance transfer form.
-Duplicate keys and warranty documents: If applicable, make sure to collect any duplicate keys and warranty documents for the vehicle or its parts.
Secure your second-hand purchase confidently with Tata Capital
Buying a second-hand car can be a wise and economical decision when done with thorough inspection and attention to detail. Making sure the car is in good condition, verifying all relevant documents, and understanding the legalities of ownership transfer can help you make an informed and secure decision.
However, financing a used car can sometimes be challenging. This is where Tata Capital steps in, offering tailor-made used car loans that cater to your specific needs. With competitive car loan interest rates and flexible repayment options, Tata Capital makes it easier for you to own your dream car without financial strain.
Whether you're buying your first car or upgrading to a better model, Tata Capital’s used car loans offer the perfect blend of affordability and convenience, making your car ownership dreams a reality. Apply now and take the first step towards driving home in your chosen second-hand car with confidence and peace of mind.
16 February 2024
5 mins read
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