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Status of Used Cars in India
There’s growing acceptance of buying used cars in India rather than brand-new ones. In fact, a CRISIL Ratings report highlights that over 6 million used cars might be sold in FY 2025-2026. The value of these vehicles is estimated at ₹4 lakh crore, which is almost equal to the estimated value of new car sales.
Analysts believe that used-car vehicle sales will grow by up to 10% in the FY 2025- 2026, which is higher than the 8% growth reported in the preceding fiscal year.
These data points and car market trends in India clearly validate the gradual shift towards used-car purchases, primarily driven by their cost-effectiveness and value. Hence, if you’re planning to purchase the best used car in India, this might be the best period.
10 Important Things to Check Before Buying a Used Car
Buying a used car is a practical, value-driven choice. However, you can only benefit from a used car deal in India if you select a dependable car. If you’re planning to purchase your first used car, ensure you choose one after checking the following things.
Registration Certificate (RC) Details
The RC is the most important document for a car, as it verifies vehicle ownership. You must check it to ensure that you’re buying a legally purchased car from its rightful owner. Everyone should verify that the details on the RC match the vehicle exactly.
You must verify the owner’s name, registration date, fuel type, chassis number and engine number. Another crucial piece of information to check is the hypothecation (loan) status. If the car is still hypothecated to the bank, the seller must close the loan and remove the bank’s name from the RC before transferring ownership.
Vehicle Service History
To strike a profitable used car deal in India, you must check the car’s complete service history before purchasing it. You should ask the seller to show you full service records from authorised service centres, service invoices, and maintenance schedules.
A car with a complete service history is usually a safer option because it indicates proper maintenance. If the car was serviced at authorised centres, you can visit the dealer and ask them to retrieve service records using the car’s chassis number. It will help you cross-verify the car’s mileage and repair history.
Accident and Structural Damage
Even if a car appears fine on the surface, you cannot rule out the probability of past road accidents. Since accidents can affect the safety and longevity of a vehicle, you must inspect the car against probable structural damage.
You can look for signs, such as uneven gaps between panels, welding marks in the engine bay, misaligned doors or boot, etc. It will help you become confident of any structural damage (if any). Although fresh car paint is normal in many cases, you should still inspect fresh paint on certain parts to ensure the safety of the second-hand car.
Engine Condition
The engine directly affects the car’s performance, so it must be thoroughly checked before finalising any car. A few things you can inspect include –
- Oil leaks around the engine block
- Strange knocking or tapping sounds
- Vibrations when idling
- Excessive smoke from the exhaust
You should also observe whether the engine starts easily and runs smoothly. If you notice any irregular sound or vibration, treat it as a sign indicating internal engine wear.
Odometer Authenticity
A car’s odometer highlights the total distance travelled by a vehicle. Since lower mileage cars usually sell for higher prices, some sellers try to manipulate the odometer reading to show lower mileage.
If you suspect any such manipulation, you can confirm your doubt by checking the car’s full service records and current tyre condition. You should also look for visible wear on the steering wheel, pedals, and seats. If a car claims low mileage, but the pedals look heavily worn, this mismatch may indicate tampering.
Test Drive Performance
Almost all expert-led used car buying guides in India will advise you to test drive a second-hand car before making any decision, and rightly so. You can truly understand the car’s condition by test-driving it for 5 to 10 km on different road conditions.
Taking a car test drive in India is the easiest way to detect any hidden mechanical issues the seller might not disclose. During a test drive, you should observe the following:
- Engine pick and acceleration
- Gear shifting smoothness
- Suspension noise over bumps
- Steering alignment
- Brake response
These are some of the things that you must check. If you have other suspicions, you add them to this list.
Insurance and Claim History
It’s the most crucial thing every buyer should check, yet it doesn’t cross most people’s minds. Before you finalise any second-hand car, always check the vehicle’s insurance policy.
You must verify the insurance validity, type of insurance, and past claim history. If the car has multiple insurance claims, it indicates the vehicle has been involved in numerous accidents and has undergone repeated repairs. It’s a valid reason not to purchase such cars.
Pending Challans and Legal Issues
Before closing any used-car deal in India, you must double-check whether the selected car has any pending traffic challans or legal issues in its registration number.
In India, unpaid challans remain linked to the vehicle’s registration number and can become the new owner’s responsibility after purchase. Hence, visit the state-specific traffic police website to check for any pending challans or other legal issues.
The Interior and Exterior Condition
We’ve included this on our used-car checklist for India because it helps you determine whether you’re getting a good deal. Regardless of the car you choose, ensure it has a spotless exterior and pleasing visual appearance.
The car’s interiors must also be well-maintained, and every feature should be functioning perfectly. Consider taking enough time to inspect the exterior and interiors, as they’ll influence your driving experience.
Rust and Body Condition
Most buyers prioritise surface-level inspections, which creates challenges in the future. To avoid any challenges later, check the car thoroughly for visible rust. If you’re unsure, get a reliable mechanic to check rust in areas such as door edges, under the car, wheel arches, and boot floor.
You should avoid investing in any used cars with rust present anywhere in the car’s body because rust can weaken the vehicle’s structure, leading to expensive repairs. While you can address minor surface rust, deep rust on structural parts is a major warning sign.
How the Detailing Mafia Improves the Experience of Purchasing a Car
How to Determine the Right Time to Sell Your Car
People trying to sell their existing car to buy a relatively new second-hand model should choose the right time to sell. Although you can sell your car year-round, the best time is usually around major Indian festivals. People are more willing to make big purchases around this time because it’s considered auspicious.
Seasonal Trends for Selling Your Used Car
If you explore the seasonal car market trends in India, you’ll notice that the most favourable time is the festive season. The period between March and April is another good time to sell a used car, as people often receive bonuses or salary increases during this time. It significantly increases their financial capacity to make big purchases.
Conclusion
Purchasing a second-hand car in India is a cost-effective way to upgrade your travel experience and lifestyle, but it’s also risky if you don’t exercise due diligence during the purchase.
Hence, we’ve created this ultimate used car buying guide for Indians to help them find the best used car in India. Although inspecting a second-hand car against all 10 listed points is time-consuming, it’s worth the safety and peace of mind it provides.
If you’ve finalised the used car you want to purchase but don’t want to continue with the existing Car Insurance policy, you can find better policies at Shriram General Insurance. Our Comprehensive Car Insurance can provide wide-ranging financial coverage at affordable premiums, so do explore them today.
FAQs
1. How do I check if a used car has any pending traffic challans?
You can visit the state-specific traffic police website to check if a second-hand car has unpaid traffic challans.
2. Which document holds the prime importance during a used car purchase?
We refer to the car’s Registration Certificate (RC) because it verifies the vehicle’s legal ownership.
3. Should I check a secondhand car’s mileage before purchase?
Yes, you should, as it indicates the extent of vehicle usage. Stick to cars with low mileage, as low mileage indicates the car still has enough engine capacity to run efficiently over the years.
4. Is it safe to purchase a car with no service history?
No, it’s a risky purchase. If the car you’re buying was originally purchased years ago, a lack of service history suggests it’s poorly maintained.
5. How should I inspect the car’s engine?
You can inspect the engine by looking for signs such as oil leaks, unusual vibrations/sounds, and excessive exhaust smoke.
