Is It a Good Idea to Buy a Third-Hand Car?

Why are used cars popular these days?

There are many car models and brands in the market today. The used cars and vehicles market is booming, with many varieties and variants available. However, there are several factors to consider before buying a pre-owned car.

Buying a second-hand car is something many people do these days. However, buying a third-hand vehicle might need more intricate care and attention.

What are the Factors to Consider When Buying a Used Car?

Depreciation Rate

The depreciation rate is one of the foremost factors affecting a vehicle's value. The depreciation rate depends on factors like wear and tear, mileage, etc. The more mileage there is, the higher the depreciation rate.

Considering this factor, the depreciation rate for a new car is much higher than a used one. Since a used car is already through the depreciation period, the percentage will be smaller than a new car.

Lesser Insurance Premiums

The IDV of a car, also known as the Insured Declared Value, is inversely proportional to the age of the vehicle. This means that a new car will have a higher premium in insurance than an old car. Once the vehicle is out of the showroom and running its miles, its value, along with the insurance premium, comes down.

Warranties

When bought from trusted used vehicle dealers, used cars come with warranties. This could give the buyer a sense of security.

Quality Vehicles

Today, many people buy used cars that are of good quality. Certified dealers handpick used vehicles in good condition for people to choose from. These days, used cars have looks, performance, durability, and mechanical quality similar to a new car.

What is the Difference Between Certified vs. Non-certified Used Cars?

Several dealers are dealing with used vehicles in the market. It is up to the buyer to identify a trusted source to buy a pre-owned car. Anyone can sell uncertified vehicles, whereas only an established dealer sells certified, good-quality cars.

In uncertified cars, you cannot determine what the vehicle has been through, who the first owner was and why the car is being sold. In the case of a certified vehicle, you will have all these details with you.

If you are buying the car from the owner himself, and there is no need for certification based on trust, you do not have to go through a mediator and its charges. If not, buying pre-owned cars from declared dealers with certified cars is always best. Such dealers have a criterion before selling the cars to anyone. Everything from the car's service history to the physical quality of the vehicle will be rigorously checked.

Certified cars might cost you extra money but will give you peace of mind after the purchase. You will be provided a warranty and guarantee for the certified used cars.

If you plan to buy a third-hand car, you are advised to buy a certified one.

What are the Important Steps to Follow While Buying a Third-hand Car?

Knowing What Car to Buy

The foremost step in buying a car is knowing what car you are looking for. For this, you need to know the kind of cars available in the market and keep a list of vehicles you would like to test drive. Also, choosing the right car for your needs is crucial. For daily city commutes, it is best to opt for a hatchback. A big family of 6 to 7 members will require a bigger SUV. The same goes for buying a used car as well. Looking for the right car when purchasing a used one is essential.

Knowing What Location to Buy From

Once you decide what car to buy, selecting the dealer or location of purchase is the next step. There are many ways you can buy a used car today. From offline dealers to online platforms, buying a used car is now hassle-free. You could also buy used cars directly from the owners; however, you must know the car and the owner well to do so without being surprised by the vehicle's condition later.

Also, always remember that asking questions makes the process easier. The more questions you ask about the car and its history, the more likely you will get your hands on a good car.

Pre-purchase Inspection is a Must!

You must conduct a pre-purchase inspection before buying a used car. Taking a learned mechanic with you is always advisable to find potential faults in the vehicle.

This is where test driving comes in handy while examining the car's condition. You can take the car for a spin and check for any unwanted noises and screeching.

You must also check all necessary car documents before making the final decision. Ensure the car has all its services met and its maintenance is fair. Check the mileage of the vehicle and the kilometres driven to date.

Then, examine the body of the vehicle for any rust or dent. Check the engine and the exhaust for any noise to see if they function correctly.

Also, the emissions from the exhaust must be checked. There must not be any black or blue smoke when accelerating the pedals.

If the tyres are not in good condition, there is scope for bargaining. Check for the alignment of the wheels as well.

It would help if you also examined the suspension. It must be noise-free and must provide a comfortable ride. Consider checking the shockers, springs of the suspension and bushings for leaks.

Now comes the vehicle's battery, which must be given much attention. If the battery is not maintained well, you have scope to bargain.

Examine if the air conditioner is working fine. You can check the efficiency of the AC by driving the car up a slope.

All the lighting in the car must be checked next. All the bulbs and lights must be checked, from the hazard and brake light to the dippers and indicators.

Electrical features such as the OVRMs, electric rear-view mirror and the music system must function correctly.

Why Must You Check the Car Documents Before Buying a Third-hand Car?

You can only make your car if you transfer the necessary paperwork in your name. This is why and where car documents become crucial in a car purchase.

Here are the essential car documents you must know of.

• RC – The registration certificate

It is one of the most critical documents in a car. It is proof that the vehicle is registered with the government. It is more like an identity card for your car. Driving a vehicle without a valid RC is a punishable offence in India.

Details like the colour of the vehicle, chassis number, engine number and owner information are provided in the RC book.

• Insurance policy

The following important document of a vehicle is the insurance policy. It is helpful to check for past accident claims of the vehicle. It is also mandatory to transfer ownership of the car.

• PUC certificate

The pollution under control certificate is necessary to check and know the car's health. This document is also required to transfer car ownership.

• Road tax certificate

Usually, the road tax is cleared upon purchase of the vehicle. If the same is not cleared for a used car, there is scope for a bargain.

• NOC certificate

The No Objection Certificate is issued by the financier, which states that all the instalments for the loan on the car have been cleared and that the vehicle is entirely the owner's property.

Wrapping Up

Buying a used car needs much attention to be paid in the process. If you plan to buy a third-hand vehicle, the attention must be two-fold. You must look at minor to significant details before making a choice.