The market for used cars is increasing. The reasons to buy pre-owned cars are not restricted to the financials. New cars lose a lot of value when they come out of their showrooms. There is no harm in owning a used car working perfectly. This way you can save money even if you buy a car that is a few months or years old. The decision to buy used cars opens the door to several options mainly for people who have a limited budget. The market for second-hand cars is becoming organized which is a good sign for the industry itself as more buyers will show interest in second-hand cars. Market analysts are more optimistic about the used car market since more than 40 lakh units of second-hand cars were sold in FY19 alone. The same figure was around 36 lakhs in FY17. Contrary to the projection, the inquiry and bookings for used Maruti Suzuki have increased 115% during the lockdown period. The semi-organized market has surged from 20% in FY11 to 32% in FY19 while the organized market has surged from 10% to 18% in the same period.
You can buy used cars with a lot of confidence. Here is a complete guide:
- From whom you should buy a used car?
There are three main places to buy used cars-car broker, an individual, and a pre-owned dealer. Used car classified, and online websites are a quick way to get in touch with car sellers. Do not buy a car mainly on the face value. Do all the necessary checks. You can search for car brokers. Though these dealers might have the car readily available and might want to close the deal quickly, ensure to check thoroughly all details before you check papers. Bargain the price because the quoted price can be negotiated. The organized sector of used cars is the most expensive option. However, the premium price shall give you peace of mind. The cars are inspected professionally before put on sale.
- Do your homework regarding used car price
Read the reviews of the car so that you get a trouble-free car ownership experience. After you have finalized the car, do homework about the price of the car. Find out the market rates of the car you are interested in. Prices shall differ according to the manufacturing year, vehicle condition, car variant, and colour. Make yourself familiar with the car features. This will help you command the best price for a used car. You can estimate the price using the second-hand car valuation tool.
- Set a budget
Set a budget for the money you want to spend on your car. You might get tempted by the salesperson to buy something. Remain grounded and vigilant. If you need financing from banks, you choose short-term loans that have lower interest rates. You can check with your bank for various loan options.
- The condition of the car
It can be a little tricky because you are buying a used car rather than a brand-new car. The outer surface might look clean but what is underneath should be looked into thoroughly. Make the second-hand car valuation yourself. A good idea is to take along a mechanic or a friend who knows about cars. Get a service history report. Do an inspection of the car’s exterior for checking the signs scratches, repaint, and dents, if any. Check for suspension and underbody damage. Check the condition of the tyres because replacing them is expensive. For car interiors, check the roof liner, the seat, all lights, signs of rust, signs of airbags, air conditioning, etc.
- The paperwork
Ensure that the paperwork of the car is in order. Important documentation includes registration certificate, purchase invoice, pollution certificate, road tax receipt, car insurance papers along with a NOC. Ensure whether there is any accident history linked with the car. If these documents are accurate, you might run into trouble with the authority during the time of ownership transfer. Besides this, the warranty and owners’ manual are important documents
Buying a used car might seem to be very tedious. However, if the follow these steps diligently, then you will be rewarded with a good car that suits your budget and needs. However, check used car value before you buy a used vehicle.