Download Mutual Fund Application Forms
Pre-owned car can make sense in these inflationary times. But buying one can be trickier than getting a new vehicle
If you are thinking of buying a car but are worried about the rising inflation and higher EMIs eating into your budget, you should consider buying a used car. For those learning to drive, the general advice is that they should hone their driving skills in a used car. However, buying a used car is not an easy task. Though a used car costs less, there are a lot of aspects to be considered while buying one. You should do your due diligence before buying such a car. For example, two cars of the same model would carry two different prices. The difference in price could be on account of the age of the car, how many people have driven, etc.
First Fix Your Budget
Since used cars are available in a wide variety of models and prices, the starting point would be to determine your budget before scouting for a car. The price of a car will depend on how old the car is, how many kilometres it has already been driven and the condition it is in. So, if the cost for a new model of a car is Rs 5 lakh, then you could get older versions of the model for anywhere between . 1 lakh and . 4 lakh.
Hence, it is very important that you have a budget in mind. It will make selecting a car model easier. Once you have a budget in mind, the next thing you could do is check out which models fit in that budget.
Choosing A Model
Experts advise against getting carried away while deciding the car model you wish to buy. Your choice should be governed by what kind of use you plan to put the car to and how much you can afford on maintenance. "It is important that you are not aspirational but practical when you are planning to buy a car," Sharma of Carwale.com.
Buy a relatively newer used car than an older one. If your budget is . 3 lakh, you could get a one-year-old Santro or a Wagon R. For the same . 3 lakh, you can also get a bigger car, namely a Ford Fiesta or even Honda City, but these cars could be 5-8 years old or may not be in the best of conditions.
Also, one must keep in mind that smaller cars are easy to maintain than larger ones. Servicing of a smaller car would cost anything between . 3,000 and . 5,000, while a bigger car would require as much as . 8,000 at least. Similarly, spare parts would be costly for a bigger car.
Many of us want to merely sharpen our driving skills by buying a used car, planning to graduate to a new car soon. So if you plan to use the car only for a year or so, before graduating to another car, it would be better to buy a car with a good resale value. Typically, cars in the mid-level range have good resale value, as compared with bigger cars. So, once you have decided on the model, you are ready to take a look at the available options in the market.
Checking It On The Road
When looking for a car, ask for the car's history. Most owners will tell you whether the car has been serviced at authorised showrooms or not. Go for cars that have been driven by single owners and have clocked lower number of kilometres. Different people maintain their cars in different ways. Generally doctors and Parsis are known to maintain their cars well.
Then there are people who are moving overseas and tend to sell their cars in good condition. Such cars command a higher premium than cars that have passed through multiple owners.
When checking the mechanical condition of a car, insist on a test drive. It would be better to take along a mechanic to check the condition of the car. When examining a used car, understand how much more work needs to be done in the car, or the additional cost you may incur if you were to buy it.
For this, you need to look at three important things: the insurance cost, tyres, and the dents and painting. Say you are buying a . 3-lakh car in October and the insurance expires in November. In such a case, you have to spend further . 7,000 to . 8,000 on getting the car insured immediately.
Secondly, it is advisable to replace tyres when the vehicle has run 40,000 km. So if the car has already run say 35,000 km, you would need to replace the tyres very soon. A single tyre of a midsized car like a Santro or a WagonR costs . 3,000. Replacing four tyres could cost you as much as . 12,000. These are all immediate expenses you will have to incur, so consider these costs while budgeting to buy a used car. Besides, look for things like dents in the car that require painting. It could cost as much as . 4,000 to get a dent repaired.
Things To Be Careful About
While examining a car you need to be careful about some tricks sellers might use to make a quick buck. There are many cases of the odometer being tampered with to show lower mileage to get a higher resale value for the car.
Since mileage and the age of the car are important determinants of its price, unethical dealers try tampering with these two to make a quick buck. For example, if the car has run 80,000 km, the dealer could make as much as . 30,000 more if the mileage is brought down to 40,000 km by tampering with the equipment. As a buyer, you need to be careful about these tricks, and try to see that the car condition reflects the odometer figure. For example, tyres are changed once the car has run about 40,000 km.
However, if you find a car with new tyres, and the odometer shows it has run only 35,000 km, it should ring an alarm in your mind and you should question the owner. Another thing you could check for is the paint. Is there a difference in the paint's colour visible in the car? If that is visible, chances are that the car has gone through an accident and has been repainted.
It is better to avoid cars that have met with accidents.
If you are buying a car for the first time, buy a car through a reputed dealer who has been in the trade for some time and is someone you are comfortable with. You could also consider buying from Maruti's True Value or Mahindra First Choice, which specialise in selling used cars The cars selected by them go through stringent quality tests. Hence, you are assured of a reliable product. These car dealers also give you a year's warranty, which gives you comfort as a buyer.
Just Learned Driving? Buy a Used Car
For Peace of Mind, Buy From a Reputed Dealer
1 Buying a used car is more difficult than buying a new one because used cars could differ in age, kilometers run and the way they have been maintained.
2 Buy a car based on how much you plan to use it, what its utility will be for you and how it will fit into your budget
3 If you are learning to drive for the first time, you could consider buying a used car;
4 you can buy a new car once you are confident about your driving skills
5 While examining a used car, check for odometer tampering, conditions of tyres, and dents, if any
6 It would be wise to go through a reputed used car dealer to ensure peace of mind
What You Should Pay Attention To
Odometer: Odometers may be tampered with to show that the car has run less kilo metres than it actually has. This is done to fetch higher price for the car
Exterior: Look for signs of accident or dents. Look at the tyres for signs of uneven wear and tear
Interiors: Check the condition of the battery, belt and hoses. Look for signs of fuel leakage, if any
Outstanding loans: If the previous owner has taken a loan, ensure that is settled or paid
Owned or stolen car: Check the serial number on the vehicle registration card. Make sure it corresponds to the number on the car
Past record of the car: Ask for the car's maintenance record from the owner, dealer, or repair shop. This will give you an idea about the maintenance incurred on a car
Test drive: Test drive the car in different traffic conditions. Drive it on the highway and in stop-and-go traffic
--------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Fund Application Forms
Some of the Top performing Mutual Funds are
- HDFC Top 200 Fund
- ICICI Prudential Dynamic Plan
- DSP BlackRock Top 100 Fund
- Birla Sun Life Front Line Equity Fund
- Reliance Equity Opportunities Fund
- IDFC Premier Equity Fund
- SBI Magnum Contra Fund
- Sundaram Select Midcap
- UTI Dividend Yield Fund
