Tips To Note Before Planning To Buy A Second-Hand Car


The market for second-hand cars in India is huge. Cars are an integral part of the modern lifestyle and everyone wants to own one. Cars have transcended the boundary of being just a luxury item and today they find utility in various aspects of daily life. People prefer to buy a second-hand car as it comes at a cheaper price. Most first-time buyers prefer to go for a second-hand car as they first want to get acquainted with the driving skills of a second-hand car before going for a brand new one.  You can get second-hand car finance through a lot of financial institutions that offer attractive rates of interest. The market for a car loan and scooter loan has gone through a lot of changes lately and today, you can apply for a car or scooter loan online right from the comfort of your homes.

Getting a second-hand car is comes with its challenges. You have to check the vehicle first on various parameters to assess if it is priced fairly. Then there are documents that you need to procure to get that vehicle financed through a financial institution. In this article, we will discuss some tips that will be helpful the next time you are planning to buy a second-hand car with finance.

Tips for Buying a Second Hand Car on Finance

1. Thorough Inspection of the car and its papers

The first thing you should do is to get the car thoroughly inspected by a trusted mechanic. This is necessary to know the exact running condition of the car. You can then either get the faults fixed by the owner of the vehicle or at least renegotiate the prices based on the result of the inspection.

A few other things that you should get checked are:

  • Check the insurance papers of the car to see if the car has been through an accident.
  • Ensure that the engine number and chassis no. are the same as in the registration papers.
  • Inspect all the filters of the vehicle, and get them changed if possible. All filters (air, fuel, transmission, oil) need regular cleaning and oiling.
  • Brakes are something that you must check before buying a car. Take the car for a small drive and check the brakes at different speeds.
  • Check the conditions of the tires. Make sure that you are not buying a car with worn-out tires.

2. Transfer the Registration Certificate (RC) in your name

This is something that you must do before buying a car. You have to fill out forms 29 and 30 and submit them to your regional RTO. The form has to be signed by both the previous owner of the car and you. If the car is not registered in your RTO, then you will have to get a NOC from the other RTO.

Once the local RTO initiates the transfer, the entire change in the RC can get implemented within 45 days. You can use the copies of these forms as proof in the interim.

3. Get second-hand car insurance in your name

Getting the insurance policy in your name is as important as getting the registration transferred in your name. If the name on the registration does not match with the name on the insurance policy, then the insurance stands nullified.

You can do this by getting the name changed in the previous owner’s insurance policy. This has to be done parallel to transferring ownership.

If the previous owner doesn’t have an insurance policy, then you can get a new policy in your name once the registration is transferred in your name.

4. Transfer of No Claim Bonus (NCB)

Transfer of NCM is a complex issue that should be dealt with at the time of transfer of ownership. The insurance policy can be transferred from the previous owner to your name but you will not be able to avail of the NCB. No Claim Bonus (NCB) is given to the customers who have not claimed insurance for a certain amount of time.

However, if you have owned a car in the past and an NCB discount is applicable, then you can get that transferred to your new policy. The previous insurance company must have issued an NCB reserving letter in your name. This is valid for 3 years from the time of the last policy expiry

5. Get the Car in Shape

Following is a checklist that you should follow before taking your new second-hand car on its first drive.

1. Clean it thoroughly

2. Change of fluids

3. Quick fixes in the engine (e.g. spark plug)

These checks will help in keeping the car in a healthy condition.


Second hand car finance is available at all financial institutions. You can use this to finance the car of your choice and repay the amount in small and easy installments.