1. An overview of the Indian auto market
Being the fourth largest auto market in the world, the Indian auto industry is among India’s biggest industries which employs millions of people and contribute over 7% to the nation’s GDP. Nevertheless, the industry has been facing a slump with a number of auto manufacturers reporting a considerable reduction in sales number for the past months. As a result, generous discounts are being offered across various models by many automakers. The decline in the Indian new car market can be explained by numerous reasons including an overall consumption decline in the economy and a cyclical slowdown in auto sales in election years.
A decline in new car sales would mean that the second-hand market is attracting more attention. Despite the slump in the whole industry, the used car market has still been thriving over the past year and is now even larger than the new car market. As revealed by a recent report about Indian second-hand market by IndianBlueBook, a preowned car pricing guide by Mahindra First Choice Wheels. In 2018-19, while only about 3.6 million units of new cars were sold in India, the figure for preowned cars was 4 million. The used car market is expected to witness an increasing demand in the foreseeable future.
2. Pros and cons of buying a used car in comparison with a new car
So, buying used cars must have some benefits over new cars so that the used car market has attracted such a large number of buyers and has grown at such a fast space. However, every coin has two sides, buying a used car is not an exception.
Pros of Second hand Cars
For the same vehicle, the same model and the same variant, a used unit would cost much less than a new unit. Similarly, with the same amount of money, you can get a well-maintained second-hand car in a higher segment compared with a new car.
Now, used cars no longer require regular maintenance with most cars in the market including long-term reliability as part of the package. Japanese auto manufacturers have been well-known for this by offering vehicles which come with reliable performance for at least 200,000 km if it is in good maintenance.
This advantage occurs only when you have decided to sell your car. As the depreciation usually occurs in the first two or three years after the car starts to operate on the road, a used car usually experiences less depreciation than a new car.
Certified second-hand cars
Certified used cars are offered by some authorized dealerships in India now. While these cars are often priced at a higher range, they have undergone a thorough examination and even alterations in terms of components and design.
If the used car is only one or two years old, you can be entitled to an extended warranty, which is available in two types in India: one that covers almost all elements (like that for a new car) and one that covers only the motor and transmission.
Cons of Second hand Cars
Not the newest generation
The used cars available in the market are often not in their latest generation; therefore, not equipped with the latest gadgets. Of course, there are still examples of latest models in the second-hand car market, but they are in a very limited number.
Second-hand cars may undergo damage by floods, accidents, etc. but only superficially repaired. This requires careful car verification, which is quite time consuming
The maintenance cost of a second-hand car will usually be higher than that of a new car, given the fact that the two cars have the same price.
Overall, buying a used car is an ideal choice for any auto buyers who are on a limited budget but still prefer a car from a higher segment, do not mind the absence of the first owner\s feeling, the most cutting-edge technologies and are willing to check the used car’s history thoroughly.
Used Honda City for sale in India
II. How to Evaluate a Used Car?
Maybe the steps to evaluate a used car might vary from car to car and also depends on the habits of each auto buyers; however the general process of evaluating a used car consists of six steps as follows.
1. Requesting vehicle history
Check the distance covered by the car on the odometer and review the maintenance records to see whether the car has been rebuilt or flooded.
2. Examining body damage
Carefully check the car to see whether there is any dents, dings or scratches on the car body.
3. Test drive
This step will help you answer the following questions.
How are the car’s riding and handling quality?
Are the brakes operating well?
Does the car emit any strange noises?
And there are also many other questions which you should pay attention to when buying a used car.
4. Having a professional mechanic inspect the car
An independent mechanical examination by a professional mechanic might be of great use.
5. Reviewing the fine print
Make sure that you are aware of what and how long the warranty covers. The repair for the parts which are covered in the warranty is free of charge so it is worth the effort.
6. Evaluate the car
After all the five above steps have been covered, the last step is, of course, is to evaluate the used car and then decide whether to buy it or not.
III. Which is the Best Car to Buy in the Second-hand Market?
1. Top popular brands and models in the second-hand market
Not surprisingly, the most popular brands in the second-hand car market are also the largest auto manufacturers in the country. However, the first and second positions in the new car market which are secured by Maruti and Hyundai, respectively, have experienced a swap in the used car market. The list of nine most popular brands in the Indian preowned car market consists of Hyundai, Maruti Suzuki, Honda, Toyota, Mahindra, Tata, Ford, Renault, Volkswagen. The top popular models in second-hand car market include Maruti Swift, Maruti Dzire, Honda City, Mahindra Bolero, Mahindra Thar, Tata Nexon, Tata Tiago, etc.
2. Which are the Most Popular Price Ranges for Used Car Search?
IV. Where to Find the Cheapest Used Cars in India?
1. Introduction about Indianauto.com
You are looking for a used car, look no further than IndianAuto.com, a website which provides users with the latest news, guides, trending stories and thorough comparisons on automobiles. But most importantly, it also offers an ultimate online solution for buying and selling second-hand vehicles with the Used cars for sale section where you can easily purchase and sell second-hand cars in India.
You can get access to the most attractive used-car-for-sale offers not only in your localities but also in other states. Furthermore, thorough car descriptions and specifications are also available to you.
Thanks to our user-friendly optimized searching tool, you can easily search for your favourite cars by filtering the vehicles by their locations, brands, models, prices, kilometer covered, model years, fuel types, body types, transmission options and also colours. Moreover, the related links to vehicles also appear on the page in case you are interested in any of them. Also, do not hesitate to register to enjoy even more benefits with us.
2. Used cars selling on Indianauto.com by city
V. What to Bear in Mind When Purchasing a Used Car?
1. Mileage & production year
Each type of car has a different ideal mileage and production year for its used units; however, a car which has travelled from around 14,000 to 18,000 kilometres and is about three to five years old is the perfect one. Accordingly, if you are currently looking for a used car, one which was produced between 2014 and 2016 is the best to go for. Therefore, always remember to check the odometer and also the car’s production year. However, odometers can be tampered, so check it carefully.
2. Related documents
Bluebook: Actually, it is a registration certificate. Check with the RTO if it is genuine.
History report: This document, which shows the services that the car has received, is also very necessary when you buy a used car.
Insurance certificate: The insurance certificate is a must for the ownership transfer. Remember to check this in case an accident claim arises.
Pollution under control (PUC) certificate: This is also a must to transfer a car.
Road tax papers: All the road tax papers should be handed over to the new owner.
Car purchase invoice: A printed bill will be provided for you with the used car if you purchase it from a dealer or a company but if it is bought from an individual, you can demand it from the seller.
After checking all the relevant documents, you should implement a thorough inspection to ensure that all the below components properly work.
Engine: A good engine should not emit any blue or black smoke when the car accelerates.
Exhaust pipe: Make sure that the exhaust pipe works properly.
Tyres: Carefully check for tyre leaks
Wheels: The wheels should be well aligned.
Battery: Check for acid wear and tear around the battery.
Electrical parts: Lighting system and dippers, etc. should also work properly.
Audio and air conditioning system: Check whether the audio system is still in good condition
4. Ownership transfer
After the car has been sold, it is necessary for the seller to intimate the RTO and apply for the ownership transfer within 14 days. Some documents are required, i.e. the original registration certificate, Form 29, From 30, Form 28 (mandatory for inter-state transfers but not necessarily compulsory for within-state ones), residential proof, report of N.C.R.B, insurance and pollution-under-control certificate (PUC). The expenses for transfer of a used car’s ownership vary from state to state, but generally, it includes the transfer fee and service charge. They are around INR 300 for each car. Doing all the work by yourself is highly recommended since if it is done by an agent, you will be charged a large amount of money.
VI. What are the RTO rules for scrapping a car?
It has been recently declared by the Indian government that all the vehicles older than 15 years need to be scrapped. This means that however well-maintained your car is, if it is older than 15 years old, it needs to be got rid of.
The transport department in cities around the world is in charge of ensuring smooth public traffic flow on road, keeping vehicle registration insurance reports, controlling pollution, issuing permits and collecting tax. It publishes RTO regulations and implements them so as to monitor and regulate the city transport’s operation.
There are some RTO rules for scrapping a car which can slightly vary, depending on the state; however, generally, the process includes the following steps.
1. Informing the RTO
The owner declares his car scrapped by submitting an application to the RTO.
2. Handing over the RC and chassis plate to the RTO
If the RC is damaged or lost, you are required to submit two copies of Form 26 and a copy of FIR.
If your car is financed, no NOC from the bank has to be handed over. A NOC duplicate, which can be easily taken from the bank with some fee, is required if the NOC is lost.
3. De-registering the car
After all the certificates are checked and other requirements are satisfied, the car will be declared as a scrap car and removed from the RTO registers. Now, the car can be cut down into pieces or melted down to extract the metal.
If you want to sell a scrap vehicle, you are required to provide the buyer with a copy of the RC and the bank NOC. Remember to get the chassis number plate back, and follow the above procedure to de-register the car.
Overall, nowadays, many auto buyers go for second-hand options as a way to save money and buying cars online is also a good option, which can save you plenty of effort. However, going to buy a car in person is always highly recommended since this can give you the most genuine look at the car. Therefore, if you have no choice but to buy a used car online, remember to check all the information available beforehand so that you can find the perfect used car for yourself.
Frequently asked question
- What are the most affordable used cars for sale in India?
IndianAuto offers the visitors with a wide range of affordable second-hand cars, some of the most affordable ones include the Toyota Innova, Tata Nano, Chevrolet Spark and Hyundai i10, etc. The used Toyota Innova is the cheapest one with a price of INR 298.
- Which used cars have the lowest maintenance cost?
The cars which require the minimum amount of money to maintain are the Maruti Alto, Maruti Celerio, Maruti Wagon R, Maruti Swift, Maruti Dzire and Hyundai Grand i10. Maruti Suzuki is well-known for its cars' good maintenance cost, which is no surprise up to 5/6 cars in the list are from the automaker.
- Where can you buy the cheapest cars in India?
Nowadays, there are numerous used cars dealerships in India which offer second-hand cars at good prices. You can even bargain more at these dealerships to get the best price for your used cars.