The trend of buying used cars has caught up in most urban and semi urban areas of the country. Used cars are less expensive than new cars and if you are look carefully enough, you can find cars in almost mint condition for Rs 1 lakh or more less. The used car industry has an inventory of 3.2 million cars and is growing at a pace of 15 percent or so. The growth of the used cars in India industry was around 19 percent in 2013 and 17 percent in 2012. For every new car sold, 1.2 used cars are sold across the country.
The used car segment was always there in the country but it took shape in the form of an industry only in the past decade. Used car dealerships sprung up in cities, once Maruti Suzuki started its line of certified used car dealerships, True Value. Following suit, many car brands such as Hyundai, Honda, Ford and Toyota have started their used car dealerships in the country. Despite the presence of so many dealerships, the used car market is largely unorganized and trade happens mostly among friends, family and a circle of trust.
If you are thinking of buying a used cars in India, you can go two ways- either approach a dealer or inform your friends about your wish to buy a used car and they would find something for you. Of the two, opting for the former method is a better deal.
Dealers have mechanics working for them who inspect the cars that come in. You can look up the official website of certified used car dealers and you would see that most of these dealers do a check on multiple points. For example, H Promise by Hyundai checks a car that comes in on 147 different points while True Value checks it on 120 points. Therefore, you can be assured about the quality of the car. Moreover, dealers usually have a large stock of used cars that you can choose from. For example, if you want a Maruti Wagon R used cars in India, then you may find 3-4 cars to choose in different colours and trims. Private sellers usually have only one car on offer and you do not have the choice of picking.
When you buy an old car, you need to get the ownership titled in your name which can take several weeks and lots of trips to your local RTO. If you buy the car from a dealer, usually he would get the transfer done without you having to visit the RTO at all. It is not only time saving but also less harassing. A lot of people opt to buy cars from dealers for this same reason.
Dealers also have on offer certain other facilities which are not offered by private sellers. Dealers usually have tie ups with finance companies who are willing to lend you the money to buy your used cars in India. By taking out a loan, you will be eligible for the lowest possible down payment and EMI. Usually financiers of used cars lend you money at 12 to 15 percent for cars which cost less than Rs 10 lakhs and at 11 percent for luxury used cars like those from BMW or Audi. Moreover, they offer free service sessions within the first year of purchase of the car. For example, Maruti Suzuki used car dealerships offer 2 free service sessions within 6 months of the car being sold. Also, used car dealers offer warranty on their cars. The warranty offered by Maruti Suzuki is for 1 year or 20,000kms whichever is lesser. Toyota UTrust offers a warranty of 2 years or 30,000kms, whichever is lesser.
If you are looking to buy luxury used cars, then there are special dealerships which would allow you to do so. Mercedes Benz started the first used car dealership in 2010, Proven Exclusivity. Soon enough, Audi and BMW followed suit. Mercedes Benz offers a warranty of 24 months or 100,000kms, whichever is lesser. Audi has gone ahead to offer a 5 year warranty or unlimited kilometres, whichever is less and this is the most unique offer of its kind.
Even though there are many benefits to buying a car from a dealer, there are some downsides as well. For example, a dealer always tries to oversell his cars by faffing and employing marketing tactics. If you have not researched enough, then you may be duped into paying a lot more. Also, since dealers know more about cars than you, they may sell you an inferior quality car.
Before visiting a dealership, check out the prices of the cars that you are thinking of buying and also the reviews about the dealership that you are thinking of visiting. Do not buy into the words of the dealer that a particular car is much in demand and you should buy it before anyone else does. Be prepared to walk away if you think the dealer is asking too much for a particular car. If he is interested in negotiations, he would give you a call to discuss the prospect. Always test drive a car before deciding to buy it. Choose a route which has a bit of the highway and city roads so that you know what it feels like driving the car on both routes. Also, check the papers of the car and make sure they are in order. If there are slight defects with the car, you can bargain with the dealer for a reduction in price because you would have to spend some money getting it repaired. However, if you have to spend an amount which is more than what the car is worth, then it is better you avoid such a purchase.
You can locate a dealership close to your residence or work place on a car selling website by entering your location and city. You can obtain their contact information also from the website.
Though a small business owner, Avinash Bhosale is an auto engineer and does part time auto modification. He writes about new and used cars; give updates on offers for used cars in India .