Things to do When You Purchase a Second-Hand Car
- Author :
- TATA AIG Team
- Published on :
Buying a car is a milestone in one’s life. With a brand-new car, everyone is utterly careful with the paperwork that follows, especially since you have the car agency guiding you in the right direction.
Inspect the car and its papers
*However, in case *you are buying a second-hand car, the onus of getting all the paperwork falls on you, especially if you are purchasing the car directly from the seller. The paperwork is also not restricted to getting insurance for the car and can include many other things.
Read ahead to go through the checklist of things to do when you purchase a second-hand car.
A second-hand car usually comes with its shortcomings. Have a mechanic you trust accompany you to inspect the vehicle thoroughly so that he may point out any glaring issues that might cause an issue in the future. Apart from the car’s smooth functioning, it is also advised that you check the paperwork for the car thoroughly, such as:
✔ Check the insurance papers of the car to gauge the history of any accidents or claims raised to fix the body of the car. Pro tip: The No Claim Bonus (NCB) percentage applied to the policy is a clear indicator for the same. A higher NCB discount points towards no claims. ✔ Match the engine number and the chassis number to that mentioned in the registration papers. ✔ Check and replace all the air, fuel, and oil filters in the car, as they need regular cleaning. ✔ The brakes need a special inspection while test driving the car. Keep a lookout for any noise or vibration from the brakes. If you feel that the brakes are pulsating, do have the rotors looked at as well.
Transfer the registration certificate in your name
Getting the registration certificate transferred to your name is the next step towards gaining ownership of the car. You should submit Form 29 and Form 30 at the RTO office closest to your residence. This RC needs to be signed on by you as well as the previous owner.
You can additionally ask the owner to submit a No Objection Certificate from the car finance company to double-check the status of the finances of the car.
Transference of the No Claim Bonus
The No Claim Bonus is a reward bestowed on the insurance holder for not raising any claims during a policy year. The discount via the NCB can range between 20% and 50%. The discount percentage varies depending on the number of years the insurance holder hasn’t raised a claim. Since the NCB is linked to the insured and not the insured vehicle, it cannot be transferred to your name, unlike the insurance policy.
*Clean and fix the car before using it *
A second-hand car may have lost some of its brilliance, but since it is now almost your vehicle, you should buff it up a bit. A thorough cleanup of the interior and exterior can bring back most of its lost shine. A deep cleanse of the interiors will ensure that the car is sanitized as per your standards. Next up is a change of fluids and oils. Changing the fluids in your car periodically increases its life span. Finally, it is best to get all the minor quick fixes on the vehicle before you begin using it regularly to avoid any issues later. Have your mechanic fix any faulty lights or signs of rust.
Car insurance for used cars
One of the most important things to do when buying a used car is getting car insurance in your name. The insurance for the car safeguards you, as well as your vehicle, from any financial burdens in case of an accident. There are two ways of going about getting car insurance for a used car.
✔ Getting the existing insurance policy transferred in your name: You can choose to transfer the second-hand car insurance in your name and apply for car policy renewal. ✔ Buying a new insurance policy: You can buy online car insurance in your name for the used car. This option allows you to go through your options of car insurance policy online and select a new plan that fits your requirements.
*TATA AIG Car Insurance *
The TATA AIG car insurance is one of the best insurance policy providers for your vehicle in the market. A part of the TATA family, the company’s legacy of trust is well established. The TATA AIG car insurance claim process is unparalleled, as it is easy, quick and hassle-free for its customers. Their motor insurance provides cover under own damage, loss caused to a third party, and personal accident. With a network of over 7500 cashless garages, you can simply reach out to their 24X7 customer helpdesk in case of any issues across India.
Buying car insurance in India is mandatory under the Motor Vehicle Act, 1988. For this very reason, even if you are buying a used car, getting an insurance policy for it is as important as getting the RC transferred in your name.
Here are some frequently asked queries by our customers:
What to do after you buy a used car?
The working condition of the car should be checked by a trustworthy mechanic. Additionally, go through all the documents of the vehicle to ensure the deal is legitimate.
What documents do I need when buying a second-hand car?
You would need the following documents:
● Registration certificate ● Valid insurance policy for the car ● Pollution certificate ● NOC from the finance company ● Car service book ● Road tax receipts ● Original purchase invoice ● Owner’s manual and warranty papers
What should you not pay for when buying a used car?
The final deal depends on your negotiation skills. However, you are not expected to pay for any modifications made to the vehicle. You are also not required to pay for the pre-requisite documents that should come with the car.
How long do I have to put insurance on a used car?
You will have about two weeks to transfer the insurance policy in your name.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.