Buying a car is never an easy decision but the challenge increases manifold if you are keen about buying a pre-owned or used car. The market is booming, demand is increasing but trust continues to be a key concern for many. With the presence of just a few organised players in the field, lack of transparency and pre-dominance of the unorganised dealers add to the roadblocks. But here is an easy guide to help you with the best buys with the minimum hassle.
- Decide on a budget: Deciding on a budget is the first step to any prudent buying decision. Check your financial liabilities and monthly spend, and decide the amount you can spend. Normally in the used car market, relatively older cars cost less than the comparatively new ones. However, the maintenance cost of older cars is significantly more. So factor in all these aspects in the overall budget that you decide on for your car.
- Model selection is crucial: Come well prepared with your research when you come to buy a used or pre-owned car. Deciding on the model and the make is very important. Remember that premium cars depreciate faster than entry-level ones. Also, the maintenance of older costs entails higher cost. Ideally, three- to four-year-old cars offer the best ‘value-for-money’ deal; those that are more than 10 years old are avoidable.
- Check condition of car: A thorough check of the condition of the car is important. Buying from an established and organised used car dealer is the first step in this regard. Look for the vehicle’s history. The RTOs in India now offer automated details at the click of a mouse and that has no doubt made it easier to ascertain the vehicle’s history, accident details, if any and the overall upkeep. This reduces the chances of customers getting duped.
- Pay attention to documentation: The documentation can be overwhelming. That is why it is important to maintain a checklist of the documents you must look for and verify when buying used cars. These include appropriate certifications, warranty, guarantee and a proper transfer deal. The payment terms also need to be properly documented for a hassle-free buying experience.
- Insurance is essential: Choose the insurance plan for your car wisely and include add-ons based on your requirement. The car ensures that the third-party risks are covered by your insurer. It also gives you the right protection in case of an unfortunate instance of car theft. Setting an appropriate insurance amount is crucial in this case. As a used car owner, make sure that the insurance policy is transferred to your name and confirm the claim history of the vehicle. That is why it is important to make an informed choice when it comes to opting for the right insurance deal.
So, if you are planning to bring home a car that fits your budget and expectations this Diwali, a used car could be your alternative. But make sure you are paying attention to all the details listed above for a hassle-free and a value buy.
Disclaimer: The opinions expressed in this article do not purport to reflect the views or opinions of AU Bank or its employees.