Everyone wants a car of their choice, which ultimately depends on their budget, type of car and purpose for which they wish to purchase the car. If the deal is good it does not matter if you buy a brand new car or a pre-owned car. So if you plan to go ahead and purchase a pre-owned car let us see the aspects you should look into before calling it a deal:
1. Evaluate your Car:
- You need to necessarily evaluate the car you wish to purchase to ensure that it is not an accidental case or in poor shape before you purchase your car.
- You can also visit a registered agency that sells pre-owned cars. Such agencies offer a good deal at affordable prices and have pre-evaluated cars for selling.
- Tag along a friend who owns a car when you go to purchase a car for yourself that helps as an experienced friend can guide better with his experience.
- Take a test drive, you will know a lot about a vehicle by the way it moves
- If you are borrowing a loan then the bank will get the vehicle evaluated through an expert.
2. Check Loan Agreement if any
You need to ensure that vehicle you wish to purchase is transferable. When a person borrows car loan for purchase of car, the vehicle remains in the name of loan assigning bank and vehicle itself acts as guarantee towards the loan till such time the borrowers pays the loan. Non-payment of the car loan by the borrower can lead to the loss of asset. So you need to check the documents to ascertain that the previous owner selling you the car is authorized to sell the car or not. If you do not find a clause in loan agreement of the bank pertaining to loan transfer you need to get in touch with the bank.
3. Check Insurance documents:
You should check that the car has been previously insured and get the insurance policy transferred in your name. If the car has not been covered under insurance policy you need apply for insurance. Remember having a previous insurance document can fetch you a better and cheaper insurance deal.
4. Check RC and transfer the vehicle in your name
You need to also check registration document of the vehicle – the vehicles are registered at the RTO – Regional transportation office. It is important for you get the vehicle registered in your name by visiting the RTO – Regional Transportation office. Once your application for transfer of the vehicle is submitted and the fees has been deposited the process takes around 2 weeks for registration of vehicle in your name.
5. Send the car for service before you drive it home
If you are buying your car from a pre-owned car outlet you will get a car that has been serviced before you ride it home. However, if you are buying a car from a pre-owned car owner directly you should definitely get the car serviced before you finally bring home the car.Main Category: Loans