Used Car Buying Guide: Must-Know Tips Before You Seal the Deal

Thinking of buying a used car? Here are 6 key things you need to know about price, loans, warranty, and paperwork.

Looking for a used car? Here's what you need to know

Car demand in India is rising. Despite new model launches, budget buyers prefer used cars, especially post-pandemic.

Lower prices, more variety, and less financial burden drive this trend. India's used car market is expanding rapidly, with further growth predicted.

Buying used can be a good decision, but precautions are crucial. Remember these six points before finalizing a deal:

1. Car Price and Market Entry Time

A new car depreciates upon leaving the showroom, losing 20% of its value in the first year. Buying a one-year-old car saves you 20%. New cars aren't driven much initially, so you might find a lightly used one. Don't buy based on price alone; check the car's technical condition and market entry time.

2. Top Model at a Lower Price

Top-spec new cars are pricey. But the used car market offers the same model much cheaper. With some searching, you can find a lightly used, top-spec variant at a new base model's price.

3. Lower Loan, Lower Insurance

A used car's lower price requires a smaller loan and lower EMIs. Used car loan interest is slightly higher, but insurance is significantly lower due to the car's reduced IDV. Some offer lower EMIs.

4. Easier Paperwork

Dealerships handle paperwork. Buying directly means you manage registration, insurance, and ownership transfer. Get help if needed, and watch out for fraud.

5. Warranty Limits

Dealership purchases during the warranty get you the original plus an extended warranty. Private purchases don't transfer warranties.

6. Limited Choices

New car markets offer variety. Used car markets have fewer options. You might not find your exact match, but patience helps. Plan your purchase.