Buying a Used Car? Here's What to Look Out For

The used car market in India is still largely unorganised. Although most major auto companies now offer certified used cars, most of the transactions still take place in the open market.

Maruti, Hyundai, General Motors, Toyota, Tata Motors, Mahindra & Mahindra etc. all sell certified used cars complete with warranty, not just from their own stable but across brands.

There are different stages of checking and testing that these cars undergo, before being certified by the companies.

However, because the companies say these cars go through rigorous testing, they charge much more than what the neighbourhood used-car dealer would.  

There are also cars sold by auto companies, without the certifications and the warranty, which cost substantially less, but they would still be more expensive than the dealer operating in the unorganised sector.

There's no reason to be too wary about the unorganised sector, as many a time you can pick up a great deal from there.

Buying a second-hand car is not a bad idea, but if you have the means, most people would suggest you go for a new car- simply because of the fact that there are less hassles involved. A new car is unlikely to give any trouble in the first three odd years at least.

Even if a car is in mint-condition, and has only run a few months or a few miles, it will attract a price much less that its original price, while being sold, because it is a depreciating asset. It is a good idea to keep a lookout for such deals while buying a used car.

"If you buy a new car for around Rs 10 lakh and want to to sell it off immediately, you can easily shave off a lakh (Rs 1 lakh)," says auto expert Tutu Dhawan.

The more premium and high-end the car, the better a deal the new buyer stands to get, opines Mr Dhawan.

For cars within the Rs 5 lakh bracket, Rs 50,000 can easily be discounted if it is being sold off in a month or two, he says.

My first car was a second hand 'certified' automobile from one of India's major auto companies. Although there were some minor issues with the clutch and brake of the car, which I found out in the course of driving it for the first few days- they were quickly addressed and fixed by the company.  I drove it for a year, and got a good price while selling it off. What worked in my favour was it was one of the more popular cars from one of India's most trusted car makers, it was silver in colour (silver and white have the best re-sale value), it was fuel-efficient, and well-maintained.

While buying a used car, keep re-sale in mind. White and silver, as mentioned earlier attract better prices; a popular car whose spare-parts are readily available and are not very expensive should also be part of the checklist.

When you go to check or test-drive a used car, take somebody along with you, who understands cars well. It is always a good idea to take a seasoned driver or a mechanic along, they would be looking at it sans the rose-tinted glasses which you may have put on- simply because you love the way the car looks.

Even if it is a certified company car, make a checklist about the gears, clutch, brake, accelerator, steering, tyres, headlamps, doors, windows, horn, wiper- check if everything is functioning properly, if anything seems amiss raise it with the dealer or the company immediately.

And once you have zeroed in on the car you want, make sure all the paper work is in order.