7 Reasons Why Investing In A Used Car May Be Beneficial For You
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Parth Dutt
editor
Advisories
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13 mins

7 Reasons Why Investing In A Used Car May Be Beneficial For You And How To Book One

Parth Dutt
editor

The concept of basic needs has been turned on its head and constantly re-evaluated since the Covid-19 pandemic has struck us. The previously existing basic needs were shelter, clothes and food, but now the need of having a vehicle has also come into awareness among people since the coronavirus pandemic. Since the outbreak, more and more people have begun to forego all public transport and opt for a personal mode of transportation to avoid unwanted transmission and risk of infection.

Having a car in India can be looked at from various different perspectives such as, for one individual it might be a necessity and for a few it a more of a status symbol and for the others it is indeed a fantasy come to life. During the pandemic the public transportation wasn’t efficient enough and also people weren’t confident enough to travel among the crowd. The safety concerns also had an impact on the decision whether to buy a car or not.

Buying a car isn’t an impulsive decision for the majority, rather it is a huge financial decision which requires planning along with big savings. Slowly and steadily the concept of buying used cars is seeping into the Indian community rhetoric. The pre-owned cars can be as good as buying a new car, if you find the right one. Buying a pre-owned car involves a lot of research, knowledge about cars and also it comes with a big risk, therefore, many people refrain from going down this road. The concept of exploring options of used cars has been completely revamped with the online platforms like us, CARS24, where one can easily find the right one for him or her.

The condition and the reliability of a used car still is a reason to worry for the common man. With the advent of online used car dealers the trust of a common man on a used car has increased manifold. More often than not, the offline used car dealers, the checkings they do of a car are next to negligible as their sole aim is sales. Unlike the dealers, platforms such as ours CARS24, usually go deep into the checks and are very thorough with the car before approving it for sale so as to not play with the customer’s trust. Various guarantees and warranties are given after sales so as to generate and ensure the customer’s trust with the platform. The online platforms have become the go to place for buying a used car. There are a lot of questions that come into the mind of a buyer when thinking of getting a used car. Let’s look at some of those questions to bring about more clarity in decision making.

Why Used Cars Are Affordable

Buying a used car is financially easier and affordable because the cars go through depreciation as well the general wear and tear also comes into account. There remains a question of finding the right one as the worry and fear of additional cost of the used car. In order to become worry free from such questions one should go for certified used cars from the trusted vendors. At CARS24 there is a stringent 140 point quality test done on a car before procurement of it. Then these procured cars are further refurbished to become as good as new with the average cost spent on each of Rs 20000.

Looking more deeply at the reasons for the pre-owned cars being affordable, we now move on to the lower depreciating rate of these cars. 

Low Depreciation Rate 

The depreciation rate on the pre-owned cars is less and this majorly impacts the pricing of the car and makes it cost very less when compared to a new car. Depreciation can be explained as the loss of value of one’s asset. The depreciation is dependent upon a number of factors we talk about cars as our assets. The car’s value is depreciated majorly because of the wear and tear of the car and also the running mileage of it. We can expect higher depreciation for the car having higher mileage. So when we talk about new cars, their value gets depreciated by 15-30 percent within a span of a year. This is the loss of value one has to bear when buying a new car. On the other hand the used cars have already gone through vicious depreciation earlier. We can understand it as that there will not be a huge difference in value when selling a used car.

Lower Insurance Premiums 

The insurance premiums for the new car are way too big when compared to a used car. This is because the insurance premium is directly related to the age of the car, which means that the newer the car, the higher the premium one has to pay for insurance. So the insurance premium one will be paying for a used car will be significantly cheaper, making it more cost effective. 

Used Cars That Come With Warranties Are Trusted (6 Month Warranty)

The most effective way of proving one’s trust is giving the warranty against the product. Dealers like CARS24 give comprehensive warranty to win customer’s priceless trust. The customers get a sense of security and relief as he or she doesn’t have to worry about future repairs and maintenance costs.

The biggest help that CARS24 does is finding the right car for the customer. The cost effectiveness will only suffice if the car bought is great to run, else it’s a burden on the pocket. 

Great Quality Cars 

Finding a great quality car is where CARS24 is very particular. The stringent tests done before procuring a vehicle makes the customers get the best results. The cars procured are also insured that they have been non-accidental and refurbished to the best of their condition. 

Easy Returns 

Now also with all the strict checks and low cost, if the customer still feels unsatisfied with the car he or she has bought from CARS24, they have an option of returning the car within the 7 days of purchase and can have a 100 percent refund for the same. 

Certified Vs. Non Certified Used Cars 

To bring about more clarity to the difference between the certified used cars and uncertified used cars, we’ll be looking at the detailed procedure of both.

 We can divide the entire used cars segment into these two categories. The certified used cars is a very new concept for the Indian buyers which has come to limelight with the advent of online dealers. The majority offline dealers have non-certified used cars in their lineup. Now looking at the detailed difference, firstly, a non-certified seller could be anybody whereas a certified used car seller is somebody who attest of the quality by the various tests done on the car. From a neighbour to a relative, from an offline dealer to a friend could be non-certified sellers, they are called so because they have no test document with which they can attest the quality of their car.  The negatives of not having any certification means that there would not be any way to check whether the car is non-accidental or not or if there has been some type of tampering done to the car. The benefit of buying a car directly from the dealer will be eliminating the cost of the middlemen associated with the sale. Hence, buying directly is cheaper but it increases the risk manifold because of no certification. The certified used car dealer will have the tests reports, details which builds confidence among the buyer especially while purchasing the used car. These types of dealers will be more expensive than the offline dealerships.  

Buying A Used Car 

Now, the question arises of how to buy a used car? To answer this we will be looking at some steps that will make your journey of purchasing easier.

The first and foremost is selecting the car. Look for the car that is a perfect match for your pocket first and then a match for your lifestyle and needs. Look out for the basic requirements and features you need in your car. Selection of the car is very critical, for example for daily commute of a single person an SUV is not at all a good option, whereas, for a person with a family of 6 should not buy a compact sedan. A deep insight to your actual needs should be given well beforehand making the decision.

The second step should be to explore all the buying options for the car that you have selected. After doing critical thinking while selecting the car, one should go and visit the various buing options and look at the car in real. The buying options could be a direct owner, an offline used car dealer, an online used car dealer and many more. Ask multiple questions without hesitation from the person selling the car about the car’s usage, reason of selling, age etc. Getting to know the car will improve the chances of buying the right one. Now we will look at various buying options mentioned above and explore more about them.

The first option is buying directly from the owner. The major advantage of buying directly from the owner is that the cost of buying the car reduces a lot because there is no middleman involved. There are other drawbacks to this method such as that this method is time consuming as one needs to spend time looking for the right car and find an owner that is willing to sell. Also, one cannot expect the owner to tell the entire truth about the car’s condition. The customer needs to probe a lot to know a bit about the car. The owner can only show the service history of the car and it becomes difficult to know the actual condition with just looking at the service history. The owner has many ways to hide the faults within the car so the customer needs to get a mechanic during the purchase. The owner can also not provide with the after sale warranty or guarantee of any kind.

The other popular option in the past was to get a neighbourhood pre-owned car from the dealer. The benefit of buying a pre-owned car from the neighbourhood dealer is that it is one of the most convenient methods as one doesn’t have to hunt down for the cars. However, these cars come with no assurance of being tampered free. The odometers and the documents have been usually tampered with in such dealerships. There is also a risk of buying a car that is owned by the dealer as the car will become third hand and thus reducing the value drastically. These cars have a higher cost than the one’s directly bought from the owner as the broker is involved. 

One of the most trusted ways of buying a second hand car is directly from the OEM. OEM stands for original equipment manufacturer, if one buys from the OEM one should be worry free from thinking about the quality and other features. The cars from OEMs will be the best on the market. Their priority is to build and maintain customers’ trust and hence they provide warranty and guarantees on the cars that are for sale. Some of the names of the OEMs will be very familiar to you such as Maruti True Value, Mahindra First Choice, Hyundai First Advantage etc. There are many advantages to buying a car from the OEM dealership. The only drawback of going through with this option is that the cost is way too much higher than the other options of buying a used car.

The uber new format of buying a pre-owned vehicle is through online classifieds such as OLX, Quikr cars etc. They provide the ease of access to numerous cars by just a few clicks. One can view these cars but should be very particular about when going to look at the car physically as there might be false pictures and details posted. It is not advisable to completely rely on the information provided on the site before finalizing.

Now comes the most trustworthy and affordable way of purchasing a car, that is, through the online used car retailers. These online used car retailers have an end to end managed and transparent system. This means that customer involvement isn’t required. They have almost the same advantages to that of OEMs when it comes to the quality of the car. This is because just like the OEMs these platforms provide reliability through the numerous tests they do on the vehicle, and also the similar OEMs they give warranty against the car sold. If by any chance a problem arises within the car then these guarantees ensure peace of mind. One of the most popular examples of such online pre-owned car dealerships is CARS24. Not only does their platform have the best of cars, they win the trust by giving a guaranteed refund if the buyer isn’t satisfied with the purchase of the car and returns it within 5 days. There is also an additional feature to this buyback feature, there is a pre-fixed value of the car upto eighteen months, if one plans to return or exchange their car. The ease of purchasing cannot be matched anywhere else. There are even options of financing the cars, thus enhancing the customer experience by bringing all facilities under one roof. The not so big drawback of this option is the availability in some locations. 

Testing The Car

Car buying is unequivocally hinged on one most important aspect, that is testing. Buying a car is a huge decision, one that requires a thorough checking (and re-checking) of not only the exterior of the car, but also the interior. Once you land on a used car you like, you must try it out for yourself. Test drives are crucial, especially when buying a pre-owned car. The most crucial moment is testing the car. After selecting the right one, one should take a test drive of the car in order to know the feel of the engine and the drivability of the car. By taking a test drive, your senses perceive what all you need and what all the car offers. Let us guide you through the finer points of taking a test drive.

A test drive should be long enough to tell you about the working condition of a vehicle, insist on driving for at least 5 kms through various types of roads to understand the car and your comfort. It should not only start instantly without any problem but also drive smoothly with no strange noises erupting from the vehicle. Checking the gears is a must and all the parts should be in optimum condition and performance, like the steering shouldn’t vibrate or the using the clutch shouldn’t result in a bumpy ride or there shouldn’t be any oil leaks from the engine. 

The brakes should also slow down proportionally to the force applied to them and this should happen in a straight line, the car shouldn’t move sideways. Confer with the seller and bring up any issue that might cause conflict in the future. 

Do A Pre-Purchase Inspection Of The Car

Alright, so now you know you like the car, it drives well and has passed your test drive expectations. The next step would be to do a short inspection before purchasing the car. 

This pre-inspection will not only make your purchase thorough, but will help you in the long run with respect to knowing your vehicle and avoiding any mishaps. Here are some important things to keep in mind.

Check all the relevant car documents, including but not limited to the registration, insurance, pollution certificate, road tax clearance, and loan clearance. 

Check the meter reading and guage what kind of vehicle it was before this, a 5 year old car with a run of 30,000 – 40,000 kms is the best vehicle to own.

As for the physicality of the vehicle, make sure it is rust-free. Do a complete check, and in case you do find unwanted erosion, you must call off the purchase. The engine and the exhaust must also be fully checked out, make sure there aren’t any oil spouts or unwanted smoke. The tyres should be in top condition, if they aren’t then you’ve got scope for a bargain.

The wheels should be properly aligned, at speeds of 10-20 km on a vacant stretch of land, leave the steering wheel, the car should move in a straight line. If it goes sideways, the alignment is haywire.

The suspension should provide a noise-free and comfortable ride. Give an eye to the shockers, suspension springs, and bushings, there should be no leaks.

Check the battery and signs of acidic wear and tear near it. If the battery is close to expiry and is ill-maintained, you can bargain more.

Check whether the AC is working properly or not. Cooling should be gradual and upon an increase in levels, the cooling should also increase. Drive the car up on the slope to check the efficiency of the cooling system.

Check all the lights, dippers, hazards, indicators, brake lights, headlamps, and reverse lights. They all should be in top working condition. Electrical components like OVRMs, electric rearview mirrors, and the music system should function properly.

Do A Thorough Document Check

Documents are what make the car yours, make sure that you’ve laid hands on all the relevant documents listed below before you sign the deal.

Registration Certificate: This document proves that you are buying a car from a registered buyer and it is not a fake or a bogus purchase. That being said, you should always inquire about the veracity of the RC. The engine and chassis no. on the RC should match with those on the vehicle. 

Insurance: The insurance can tell a lot about the vehicle and you can check it for past accident claims. This is a very important document for transferring ownership.

Pollution Certificate: The PUC or pollution under control certificate is required for ascertaining the fitness of a car and is required in ownership transfer.

Road Tax: Although the road tax is cleared during the time of purchase, if in any case it hasn’t been cleared on the used car, you can bargain for the price.

No Objection Certificate: Issued by the finance company, this certificate states that all payments towards the loan have been cleared and the financier has no claim on the car.

Explore All Payment Options

✔Test drive taken 

✔Vehicle checked

✔Documents checked

So, you’ve checked everything and want to buy the car through a loan. Let us help you out.

With used cars you will have to consider the high-interest rates that banks and NBFCs offer, but you can compare them and choose the one that suits your budget the most. Good upfront payment can ensure lower interest rates which would be easier for you in the long run. Buying from online dealerships has perks of its own as they provide assistance in availing loans for your used car purchase.

Transfer Of Ownership Documents

Congratulations! You’ve made the payment and are looking forward to getting the documents transferred in your name which would make you the whole and sole owner of the car. There are a few documents you would require to see it through.

The original registration certificate (RC) is required to be submitted to the RTO. If the car was purchased by a loan then a NOC along with form no. 35 would be required to be submitted to the RTO to confirm that the financier has no claim on the car. NOCs are usually valid 60 days from the date of issue.

Sale transfer form nos. 29 and 30 from the RTO need to be signed by both the buyer and seller in duplicates.

Vehicle chassis number imprint.

Notarised insurance papers, along with identity and address proof of both the seller and buyer. An affidavit may be required if the seller’s address doesn’t match with the proof of identity.

Notarised copy of your PAN card or form 60.

The CARS24 Benefit

Buying a used car can appear to be daunting at first glance but it is simplified with CARS24. CARS24  is e-commerce platform for pre-owned cars that removes the middleman while delivering more value and convenience to you all at the click of a button.

cars24 mega refurbishment labs

CARS24 features more than 10000 certified used cars to choose from, which have been evaluated on 140-points to ensure that you choose from the best used cars in your city. Our cars go through a stringent check at our Mega Refurbishment Labs by our technicians. Prospective buyers can search their desired car online, review the detailed vehicle inspection report and see the images of the car like in real life with our 360 view, and get to know the car even before test driving it. Every CARS24 certified car comes with Fixed Price Assurance, which ensures you receive the best price for the car without the need for negotiation.

The test drive experience has also been made convenient as CARS24 brings it to yout doorstep. Get your dream car delivered to your home, test drive it a familiar environment, make sure it fits your requirement well. In case you’re not satisfied with the car, you can return it within 7 days of delivery and get a complete refund. 

CARS24 is present in all the major Indian cities like New Delhi, Mumbai, Kolkata,Chennai, Bangalore, Kochi, Hyderabad. Also our services are available in major Tier-1 & Tier-2 cities. In the past 5 years we’ve served more than 4 lakh happy customers and counting.