How to Buy Used Car - Tips for Used Car Buyers

So you’ve decided to buy a used or pre-owned car. It’s a very good decision! But, it can turn into a bad decision as well. Read this full blog to learn why.

When you buy a used car, you need to keep a lot of things in mind, and I’ll tell you more about them.

But before that, listen to these facts! Firstly, when you buy a brand-new car, its price depreciates by 20–30% after leaving the showroom. It depreciates in the first 6 months and depreciates up to 60% in the first 3 years. But imagine that 3 out of 4 new cars get exchanged for old cars.

The used car market is huge! And it’s booming every day. So what are the things to keep in mind while buying a used car?

First, fix and stick to your budget before buying!

Whatever your budget (Rs 4L/8L), fix it first; that’s important! And it’s possible that you’re planning on taking a loan. Remember, the interest rates on new cars are lower than those on used cars. So if you’re taking a loan, then plan it for a shorter tenure so that the interest rate is low too.

You have three options when you buy a used car

1. A known person (friend or family member)—which is the best option. As there is no broker, which saves you money! And buying a car from known people means you somewhat know about the car’s history too. So that’s the ideal scenario.
2. Car Brokers – You’ll find used car showrooms and dealers from which you can buy used cars. I’ll tell you more about it.
3. Certified Pre-Owned Cars – There are many outlets from Mahindra (First Choice), Maruti (True Value) etc. If you buy from them, it’ll be expensive, but you’ll have peace of mind as they inspect the car properly.

So these are the three options from where you’ll buy used cars. But which car should you buy, and how old should it be? As mentioned at the beginning, if the car is 3 years old or less, it’s the best time to buy it! Because the price is the most depreciated at that time, & it’ll be more value for money for you!

And talking about distance, it’ll be nice if you’re buying a car that has run for 50–60K Kms. It should be around 60K kms, if it’s more, keep in mind that it’ll cost you more money in maintenance.

Let’s say you’ve decided on the car and the source from which you’re buying it

Inspection

It’s the most important point, no matter from where you’re buying the car (broker/friend/dealer). But inspection is very important. And if you know a mechanic or have a friend, take him along with you to inspect. It’s important, as we don’t know everything, especially about an engine! So if you take a mechanic along, he’ll tell you exactly what’s good/bad.

Check Engine

It’s important to check if the engine is clean or if there’s rust. Many cars from coastal cities have rusty engines, and rusting starts after 2–3 years. And that’s very bad for an engine! So specifically, keep an eye out for this!

Check Tyres

They’re important and expensive, so properly check the treads.

Check Electricals

This creates many problems and costs more money. Check all nobs, switches, buttons, etc.

Check the headlights, tail lights, fog lamps, etc. to see if they’re running properly or not. It’ll only take you 5 minutes, but it’ll save you a lot of money.

Check Exterior

Properly check whether the car has dents. There are many, so check for them. Also, check if the car is modified from the inside. Many times, the owners like to have very different things in a car. And the original OEM equipment is replaced, which affects its drive quality. There are 2-3 things more that I’d like to mention.

Check Owner History

A single-owner used car is better! If someone buys and sells it after a year to someone, and then you’re buying it after the 2nd person, then you become the 3rd owner. Generally, be the 2nd owner. Don’t buy cars that have already been with 2 people. Also, check if the car has been in an accident where the engine had to be changed because they’ll be cheap and will also give you more problems.

Test Ride

Take a test ride along with your friend because a 2nd opinion is always good. And when you take a test drive, do keep in mind why you’re buying the car (office commute). Because it doesn’t make sense to buy a big car for that, so look for a car according to your needs.

Check the drive quality, engine problems, suspensions, etc. And you’ll know all these only after a test drive!

Brand Record

Check the track record of the brand of car you’re buying. E.g., a Toyota Innova can run for up to 2L kms without problems. But even an old Chevrolet running for 30-40K kms can have problems. So keep the brand in mind. Generally, Toyota and Honda cars have more life. Remember, you should be able to use the pre-owned car for another 3-4 years! So try to know how well the car would run for another 50-70K kms and keep that in mind before buying.

Secondly, if you’re a new driver or have just learned how to drive, A new driver with a new car has a lot of chances of causing an accident or scratches to the car. So for them, the second-hand car is good as a test. So use it for 1-2 years, as it’s cheap, and then think about a new car! So you’ll have to keep these 2-3 things in mind as well.

Service History

Finally, you’ve liked and decided on the car; ask about its service history. And all related documents, about all servicing times, changes made in the car, etc. It’s important to know the service or maintenance history.

Documentation

All documents should be in order! The RC, etc., whether any bank claims it or not, etc. You should keep all these things in mind.

Another important document, check whether the insurance is included or not. If any insurance lapses, you’ll have to spend more money! So when you’re buying a car, make sure it’s insured!

Negotiation

This depends on how good you are at negotiating. Some are really amazing at it. And can buy a car worth Rs 4.5–5 lakh for just Rs 3.5–4 lakh, or even less than that. So that’s up to you. Develop your negotiation skills to get an even lower price and save your own money!

So I just wanted to tell you this in a quick blog, there are many things people know but don’t do. These things are not implemented. If you enjoyed this blog, then do comment. We keep bringing such informative blogs.

That’s all for this blog. Thank you!