Want to Buy a Second Hand Car During Lockdown? A Few Points You Need to Know About

In 2019, the used car market in India was valued at $24.24 billion. Further, experts predicted that the market would witness a CAGR of over 15% between 2020 and 2025.

Given the recent developments, the lockdown has hampered the growth pace to a significant aspect. Nonetheless, with continuous relaxations, the market may regain its anticipated growth. As a result, more individuals are applying for a second hand car loan online to purchase a used car.

Nevertheless, to benefit through the said credit option, individuals are required to be aware of a few things and follow them accordingly. 

Things to Know Before Buying a Used Car

Here's a checklist that individuals should refer to while purchasing a second hand car.  

• Inspect the car's condition

Intending buyers should make sure that their choice of a used car is still in good shape and is worth their time and money. They should pay special attention to parts like the engine, transmission, wheels among others and if possible and get them checked by a professional if the current situation permits it. 

• Check the registration documents

Individuals should also ask for the registration documents to find out if the particular is being sold for the first time by its actual owner or not. They should avail of documents like the original invoice, road tax receipt, etc. 

Buyers should also ask for documents like Form 28 (NOC for transfer) and have RTO Form 29 and 30 duly signed by the seller to initiate the pre-owned car's transfer. 

• Check the car's insurance policy

Car's insured value serves as a benchmark for price negotiation as it helps to gauge its price and thus helps to make an informed decision. Similarly, buyers should attempt to check the record of no claim bonus against the used car's insurance policy. 

A used car with a track of frequent insurance claims indicates that it has been under repairs on multiple occasions and requires routine maintenance. Such information will help buyers significantly. 

• Transfer the car's insurance policy

Once the insurance papers have been checked, the car's insurance policy must be transferred within 2 weeks of its purchase. Buyers may opt for a new car policy instead of getting the old one transferred. Notably, car insurance policy is vital for meeting financial obligations arising due to an accident or damage. 

• Find a trusted car loan lender

One can fund the purchase of a second hand car by availing a personal loan for used cars from a leading financial institution like Bajaj Finserv. A second hand car loan extended such financial institutions are easy to apply, quick to avail and convenient to repay.

Furthermore, they also offer pre-approved offers to customers to make the process hassle-free. Such offers can be availed on financial products like business loans and personal loans. You can check your pre-approved offer by just entering your name and contact details.

Other than the above, intending buyers should also make a note of modifications that need to be made to the pre-owned car and the cost involved before purchasing it. Individuals should inspect the pre-owned vehicle’s condition; check the registration documents and insurance policy before purchasing it. 

Additionally, they should check the car's ownership and insurance policy and look for a leading second hand car loan provider before initiating the buying and selling process. 

One should also check out the features and benefits of availing such a credit. Similarly, they must find out how to apply for personal loan for used cars to complete the application formalities related to a personal loan in 2 clicks.