The COVID-19 pandemic has suddenly shifted the daily commuter preference from public transport to a personal vehicle, especially the small budget cars. Given their massive demand in the market, any prospective buyer may be in a rush to grab his/her pick fast. So, it is important to tread cautiously, and here is a quick guide to those who wish to buy a secondhand car in India:

1. Pick a Car of your choice:

• The first and foremost step would be to research and list down a few car brands/models within your stipulated budget.
• Evaluate your commutation frequency and prepare a checklist of specifications that you would want these shortlisted cars to possess such as mileage, engine capacity, safety features, etc. Several reliable online portals provide detailed information about the car brands, specifications, and their pricing.

2. Choosing a Point of Sale

• Once you have listed down a few prospective car models, keep an eye out for their used variants being offered through various points of sale to avail exclusive offers and strike the right deal.
• Possible points of sale comprise of lots of branded dealers in the local markets, pre-owned car sellers and pre-owned car companies .
• Shortlist the car models that you wish to physically see and test drive.
• A key point to ensure while shortlisting the cars is that their registration must be in the state where you also reside with proof of residence. For tenants, proof of residence must be certified in writing by your employer as well as a lease agreement from the owner.

3. Perform a Quick Quality check

• Inspect the shortlisted cars in person, accompanied by a professional expert or professional mechanic.
• Use your hawkeye and spot those dents, corrosive surfaces, and any tire damage. Evaluate if the car has been recently painted to cover up any of these flaws.
• Check the engine thoroughly for any possible leaks.

4. Verify the Car’s Functioning and Features

• Take a test drive of shortlisted car models for a minimum of 15 minutes each to ensure that its parts such as brakes, gearbox, clutch, accelerator, odometer, headlights are all in proper condition and can give you a smooth ride.
• Keep a watch on the engine revving by shifting different speeds, especially on uneven roads and sharp turns.
• Ensure that the electronic features such as auto-locking, power windows, Bluetooth connectivity, navigation camera, reverse parking sensors, air conditioner, and sound system are in working condition.

5. Perform a thorough inspection of the Car documents and the Car itself

• Upon zeroing on a car, request for important documents of the car from its original owner. Key documents include
  • Registration Papers (RC Book)
  • Half-yearly Service and Maintenance history to check for any major repairs done earlier
  • Valid Insurance papers and claims, if any. A car with an adequate no-claim bonus reflects that the car is in good condition
  • A valid Pollution Under Control (PUC) Certificate and tax documents
• Ask the used car dealer for a certified warranty of the car after a thorough inspection of the car. If the dealer is unable to provide it, get the car checked at an authorized workshop to assess any impending major repairs or hidden loopholes.

6. Seal the Deal and Commence the Paperwork

• Strive hard to negotiate the final price of the pre-owned car with a dealer or the owner as no standard prices exist and there is ample room for a bargain. Make a simple mental note of the market prices of similar cars beforehand.
• Once the price gets fixed, the final paperwork may be carried out as follows:
  • Transfer of Registration to your name from the original owner with Forms-28, 29, and 30 along with a sale affidavit
  • ID Proof, address proof, and a couple of passport-sized photographs
  • Transaction documentation that includes a delivery note, booking invoice, sale invoice, and payment receipt.
  • Transfer of insurance to your name by the insurance company after RC transfer
  • Renewal of PUC, if need be

Conclusion: Purchasing a car- new or secondhand is a huge decision in itself, requiring meticulous spadework. With most consumers feeling the financial pinch due to the pandemic, and yet a compulsion to commute through personal transport, auto loans come across as a viable financial alternative to purchase a secondhand car. Availing an auto loan for buying a secondhand car entitles you to a loan amount of upto 90 percent of the used car’s value repayable through convenient EMIs within a flexible tenure of 1 to 4 years at low-interest rates without burdening your pocket.

Applying for an auto loan through a trusted and reliable financial institution is as important as selecting a suitable secondhand car to meet your travel needs. For this, you can rely on auto loans offered by HDB Financial Services available online or by visiting their nearest physical branch to avail the best deals for your financial profile.