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Amid rising inflationary pressures, people are increasingly taking a liking to second hand things. Since new products are extremely expensive, the market for second hand products is expanding rapidly. In the second hand market, cars have emerged as the most sought after products. Currently, India is one of the largest markets of second hand cars globally. As per a report by Mordor Intelligence, by 2028, the market for second hand cars in India will inch up to 55.49 billion dollars.

However, there are some challenges underlying this rapidly expanding market. If you are also looking to buy a second hand car, there are a few things you should keep in mind. Let’s understand them :

Seen from a price perspective, second hand cars certainly guarantee significant savings. But how much can you save? Lets understand with an example. A brand new Maruti Suzuki Celerio starts at Rs 5.5 lakh. But you can buy its old variant between Rs 3.5-4 lakhs. Similarly, a new Hyundai Creta costs Rs 10.87 lakhs, but its older version can be yours at just Rs 5-6 lakh. Remember, the value of the old car can rise or dip, depending on its model or design.

The Ministry of Road Transport & Highways introduced major changes pertaining to the sale and purchase of second hand cars, which will be effective starting 1st April, 2023.

There has been a steep rise in the number of car thefts in recent times. Thieves are easily able to sell off the cars they’ve stolen from one part of the country in another. The new rules have been introduced in order to curb this. Under the new rules, it will be easier to identify registered car dealers, and also provide protections against frauds that take place during the buying and selling of cars.

Despite all this, you should be extra cautious while buying a second hand car. First off, thoroughly inspect the car. Check its exteriors carefully for any damages like scratches, dents, rusting or windscreen damage. Also take note of the condition of tyres, battery, seat belt, AC, music system etc.

Check and verify all documents carefully. Double-check the registration certificate, or RC, and see that it corresponds to the details of the car and its owner. See the car’s insurance certificate to know whether or not the car has an active insurance, and if there have been any accidental damage claims made under the policy.

Authenticate the road tax payment receipt to make sure that the car has no pending tax payables. If the car has been purchased on loan, check for the bank’s No Objection Certificate to understand the status of loan clearance.

While purchasing a second hand car, the insurance policy has to be transferred to the new owner. If the seller fails to do so, the buyer should ensure that the policy transfer is done at the earliest. Going ahead, not transferring the policy could entail legal complications in case of an accident. Check the policy’s coverage, and whether the insurance policy covering your car is a third-party liability policy or a comprehensive one.

In the same, maintain caution with all other second hand products you buy. But what are some things you should keep in mind while buying such products? We will tell you all this and much more. Keep watching Money9.