How to buy the right used/ second-hand car: Gone are the days when used cars were taboo in India. Today, statistics show that for every three new cars sold in India, four used cars find themselves a new home. With the used car market becoming more and more organised every year, and more banks offering good pre-owned car loans with reasonable interest rates it's no surprise that the market keeps growing. The problem is that while used cars make more financial sense in the long term than buying a brand new car, it also presents a larger risk. What if the car you’ve bought has issues that you can’t detect right off the bat? what if the paperwork isn’t as copacetic as you would like them to be? Over the years we’ve learnt a few tricks that can help you choose the right used car right off the bat.
1.How to buy the right used/ second-hand car: Read up on it!
Once you have decided on a car, it's important to read up on it. Know exactly what it’s like to own in the long term, whether it suits you perfectly. Read reviews and check forums with ownership experiences. It is also important to find out how much the car costs overtime, how expensive spares are and how often they need to be changed. Then decide on a trial and be well versed in what that model trim has to offer, rebadged models with some carryover parts exist too, subject knowledge is priceless when it comes to avoiding this.
2.How to buy the right used/ second-hand car: Framing a Budget!
Always have your budget decided before you enter a dealership, decide a base price and leave a little leeway for stretch. Salespeople have made a career out of breaking your bank so no when to say no and where to draw the line before you walk into a dealership. If your looking to finance then look into the interest rates and ensure that you are getting the best rate on the market. Most banks would have you believe that they are your best bet. They usually aren’t. So check around before picking one.
3.How to buy the right used/ second-hand car: Choosing the right Place to buy from
Now primarily there are three place channels for buying used cars in India. An individual direct sale used car broker and franchise dealer. While the customer-to-customer model would be the easiest, it could also mean not having a professional that can be held responsible for inadequacies in the car. The elimination of the middle-man can mean a better price too. However, it is always advisable to get the car checked by a trusted mechanic or at an authorised dealer before you put your money down. A quick internet check on pending cases on the registration number is also always advisable. Authorised used car dealers can often be held accountable but come with a serious price premium.
The second option is a small scale dealer, these can often be the most convenient option when you are looking to buy a specific car and fast. The important thing to remember here is that one should get everything checked before you put your money down considering that these brokers usually just collect their fee for brokering the deal and aren’t liable for the actual quality of the car. Regardless of what they tell you right before you buy it.
The third option, which is through the organised used car sector, is usually the safest albeit the most expensive. The price premium is paid for peace of mind, and usually, only good cars come through this route. Although these dealers are notoriously capable of shining up a lemon so nice that it will look more than appealing on the showroom floor and only start to show its true signs of ageing as the days go by. So don’t take it at face value, and get the car checked properly before you roll out of the showroom.