Monday, 21 May 2018

5 Things You Must Consider Before Buying a Pre-Owned Car

Posted by RaviKumar Nama

(Published on 22-May-2018)

As the average age of the Indian car owner decreases, there is an increase in the demand for used cars. This demand is so huge that a Frost and Sullivan report actually considers the sale of new and used cars to be almost equal. If you are looking to purchase a pre-owned car, here are five things you must consider.

5 Things You Must Consider Before Buying a Pre-Owned Car

1. Thorough inspection

You must get a trusted mechanic to thoroughly inspect the car for any damages or trouble. Additionally, you must check the registration and insurance documents to ensure everything is in order.

2. Transfer of Registration Certificate

Once, you complete the deal, it is important to get the Registration Certificate (RC) transferred to your name. After completing this transfer, check forms 32 and 35 to ensure there are no outstanding used car loans.

3. Transfer motor insurance

A valid motor insurance policy is mandatory in India. You may transfer the policy to your name using any one of the following three methods.
  • Change the name in the previous owner’s policy
  • In case the previous owner did not have a valid policy, you need to immediately purchase one
  • Buy a fresh policy in your name

4. Assign the No Claim Bonus (NCB)

If you owned another car with a valid NCB, you may transfer the same to your new vehicle's insurance. The insurance company provides an NCB reserving letter that has a validity of three years.

5. Clean and fix the car

Thoroughly clean the interiors and exteriors of the car. Furthermore, if any fixes like spark plugs or lights need to be done, you must do this before your first drive. The life of any vehicle depends on how it has been maintained. Changing the fluids right after you buy a used car will keep it running smoothly for a longer period.

3 Factors to Consider Before Planning to Avail of a Second-hand Car Loan

1. Age of the vehicle

This is an important factor that lenders consider while approving your loan application. In addition, the model is important because if it is no longer available, securing a used car loan for it may be difficult.

2. Loan amount

Lenders may fund up to 90% of the car’s value as the loan amount. This means the balance will need to be paid by you out of your personal resources. You need to know the loan amount to ensure you have the balance money needed to complete the purchase.

3. Interest rate

Although the used car loan interest rateis slightly higher than the interest rate in case of a brand new car, it is affordable when compared to other options like a personal loan. Moreover, repayment tenure of up to seven years ensures you will have no trouble in making timely payments of the Equated Monthly Installments (EMIs).

Whether old or new, a first car is a matter of pride. Lenders make it easier for you to drive your own car with affordable used car loan interest rates and higher loan amount. Apply now and drive in your own car today.

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