4 Things to Check Before Buying a Second Hand Car

Posted on Saturday, December 30th, 2023 | By IndusInd Bank

In recent times, several well-established car brands have entered the second-hand car market, leading to a significant growth in India’s organized used-car industry. With the vast number of options available today, purchasing a second-hand car has become a financially smart decision. With many banks now offering second-hand car loans online at low rates, financing your purchase is more convenient than ever before. Keep reading to discover the four essential things you should consider before you purchase a second-hand car.

1. Age and Model of the Vehicle

The first thing you should examine when considering a second-hand car is its age and model.

• It is best to avoid models that are older than 5 or 6 years as these cars tend to have more mechanical issues as they age, often resulting in higher maintenance expenses.
• It is better to avoid models that have been discontinued, as locating spare parts for such cars can be challenging and may result in additional costs.

2. The Overall Condition of the Car

It is imperative to assess the overall condition of the car by taking it for a test drive and examining it in detail. During the inspection, pay close attention to the following aspects:

• Exterior condition: Check for any signs of rust, dents, or repair work on the body. Inspect the tyres for wear and tear, and verify the condition of the headlights, taillights, and indicators
• Interior condition: Carefully examine the interiors and test all electrical components such as the air conditioning, and the sound system.
• Mechanical components: It is essential to have a trusted mechanic inspect the engine, brakes, suspension, and other mechanical parts of the car. They may be able to identify any potential problems that may not be visible to the untrained eye.
• Additionally, scrutinise the mileage, as a higher mileage could indicate more wear and tear on the car.

3. Paperwork Related to the Car

Before finalising your decision, review all the paperwork meticulously.

• Verify the registration certificate (RC), as it serves as proof of the car’s ownership and has the registration details. It will have the owner’s name and details like the engine number and the chassis number.
• Verify the car’s insurance status and ensure that it is up-to-date.
• Other documents like the pollution certificate, original purchase invoice, road tax receipt, and servicing records, need to be reviewed as well.

4. Transfer of Ownership

• The last critical step before sealing the deal is to ensure that all vehicle-related documents, from the RC to the pollution certificate and car insurance, are legally transferred to your name. This is crucial to prevent potential issues if the car is sold again in the future.
• To facilitate the smooth transfer of ownership, you may need to visit the local Regional Transport Office (RTO).

Opting For a Second-hand Car Loan Online

Many financial institutions offer pre-approved car loans for used cars. Let us examine the advantages of applying for a second-hand car loan:

• Streamlined process: Top banks offer quick approval and end-to-end services – starting from research on the preowned car to title transfer and deal closure, eliminating the hassle of extensive paperwork, and reducing the time taken to avail financing.
• Competitive interest rates: Banks offer attractive interest rates for pre-approved car loans, making it a cost-effective financing option.

Buying a second-hand car can be a rewarding experience provided you carry out what is required with due diligence. Furthermore, opting for a pre-approved car loan with a leading bank like IndusInd Bank can make your dream car purchase convenient and hassle-free. Higher loan amount, best-in-class interest rates, wide-ranging repayment tenures, quick approval, minimal paperwork, and assistance in research set apart IndusInd Bank as an excellent option.

Bring home your pride & joy. Apply for a second hand car loan online today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.