ARTICLE: How to buy a *USED* Car in India

[meetgds]

Guys, I'm planning to buy a used Verna AT. I'm getting a 2014 SX AT diesel and a 2016 S Petrol AT, both at around 8 Lakhs. Any suggestions on which I should chose from?

• I'm a little skeptic about the latter as it is only 9 month old and has run only 3700 kms. The seller says he's selling because he needs money for some property purchase. Somehow I think there could be something fishy here.
• I also think that this still is better buy than the 2014 model, given that its still under warranty and newer face lifted variant too.
• On the other hand, 2014 model (with 21k on the odo) is the SX diesel model with better features.

Advise please.

Fun Fact: 2014 SX AT diesel has a Team BHP sticker on it

[RS_DEL]

I am a Delhi resident . I am looking at a XUV that is HR-Gurugram registered . I have no intention of going through the convoluted inter-state movement of registration of the vehicle .
The dealer selling the vehicle has assured me of a transfer in my name in HR-Gurugram RTO by using the via media of a rent agreement .
Questions :
[] Is this LEGALLY doable and if so, is it advisable ?
[] Are there any downsides to this?
Will appreciate if someone who has gone through a similar process can share their opinion/experience . Am supposed to inspect the vehicle tomorrow & would appreciate if someone can guide me prior to my going through the exercise of inspection . Thanks in advance .

[akshaymahajan]

Originally Posted by RS_DEL

I am a Delhi resident . I am looking at a XUV that is HR-Gurugram registered . I have no intention of going through the convoluted inter-state movement of registration of the vehicle .
The dealer selling the vehicle has assured me of a transfer in my name in HR-Gurugram RTO by using the via media of a rent agreement .
Questions :
[] Is this LEGALLY doable and if so, is it advisable ?
[] Are there any downsides to this?
Will appreciate if someone who has gone through a similar process can share their opinion/experience . Am supposed to inspect the vehicle tomorrow & would appreciate if someone can guide me prior to my going through the exercise of inspection . Thanks in advance .

From what I know, this is what will happen

1. A fake rent agreement will be drafted to show that you live in HR.
2. Based on that agreement, the RTO will do the transfer
3. In all RTO records, that will be your address. So challans, etc go there.

Its a common practice. Not entirely legal though because at Step 1, you already signed a fake document.

[treadmark]

We have made a deal for 2016 VW Vento Highline 1.5D AT with 20K on its odometer for 9.7 Lakhs in Bangalore.

Have few questions here. The vehicle insurance is expired and I will be spending another 30K for it. Since the vehicle is hypothecated to VW finance even if I pay for the pre-closure amount tomorrow, what we may get is an acknowledgment and need to wait for another two weeks for NOC from VW finance. The RC name transfer happens after that.

Now the question is what if we get an insurance tomorrow on the current owners name and what will it take to transfer the insurance to my wife name after RC ownership transfer.
Also is it safe to drive the vehicle until then?

Appreciate your valuable feedback.

Cheers!

[vincyf1]

Found this "Used Cars Checklist" from the Popular Mechanics website.
Hope it comes of some use to everyone buying Used Cars in some way.

Source: Popular Mechanics Article

[cogWheel]

One of the additional expenses in buying a pre-owned car with bank financing is the Valuers' fee. The banks have nominated Valuers whose report is an essential requirement for loan processing. What has been your experience with them? Here in Mangaluru, some of them charge a minimum of Rs.2500/- which I found to be high for small hatchbacks - sometimes amounting to 1% or more of the vehicle value!
Would like to hear your experiences.

[hserus]

You pay your money and you get your money's worth. A good valuer will check the car for quite a few things that you might not notice, unless you pay a decent sum to a trusted mechanic.

As it is a used car try to buy it with your own cash (eg sell shares / close FD etc, and that will still be cheaper than a loan). Banks charge a higher interest rate than new cars for used cars, and they will also refuse to loan money for cars older than 2..3 years.

Originally Posted by cogWheel

One of the additional expenses in buying a pre-owned car with bank financing is the Valuers' fee. The banks have nominated Valuers whose report is an essential requirement for loan processing. What has been your experience with them? Here in Mangaluru, some of them charge a minimum of Rs.2500/- which I found to be high for small hatchbacks - sometimes amounting to 1% or more of the vehicle value!
Would like to hear your experiences.

[cogWheel]

Originally Posted by hserus

You pay your money and you get your money's worth...

Agree with you on that about getting valuations done for making a buying decision.
What I am referring to here was the fees that Bank's valuers charge for the report made for the bank on the "value" of the car for deciding the proportion of financing. They do not provide any insights into the mechanical state of the car, they just put a overall value on the car. Most of the times based on a cursory examination and largely lead by the IDV on the insurance.

[hserus]

Originally Posted by cogWheel

Agree with you on that about getting valuations done for making a buying decision.
What I am referring to here was the fees that Bank's valuers charge for the report made for the bank on the "value" of the car for deciding the proportion of financing. They do not provide any insights into the mechanical state of the car, they just put a overall value on the car. Most of the times based on a cursory examination and largely lead by the IDV on the insurance.

So please ask your bank to find a valuer who gives you your money's worth by fully inspecting the car instead of looking at the IDV and producing a proforma report.

They are technically supposed to do all this but will fill in any rubbish whatsoever because of a hurry to close the loan and move on to other customers.

[rajathv8]

Originally Posted by treadmark

Now the question is what if we get an insurance tomorrow on the current owners name and what will it take to transfer the insurance to my wife name after RC ownership transfer.
Also is it safe to drive the vehicle until then?

Taking insurance in current owners name and transferring to new owners name is possible but the process of transfer may vary from one company to another so you need to check with them.
I was unable to transfer the insurance when I bought my pre-worshipped car. The insurance was from United India Insurance and was taken in Kochi. They wanted me to visit the Kochi office and get the car inspected there to get the transfer!

It should be ok to drive the car since you will have a delivery note and have an acknowledgement from the RTO that the ownership transfer is in progress. It is legal. However the insurance company can act cranky in the unfortunate case that a claim needs to be made. It is best to not use the car till you have both the RC and insurance transferred. It is not worth the headache in case lady luck decides to take a holiday.

Originally Posted by meetgds

I'm getting a 2014 SX AT diesel and a 2016 S Petrol AT
Advise please.

Well its really a personal choice. What do you value more? Lower risk with extended warranty or more features? Does your running justify a diesel?

About the petrol, the condition of the car takes precedence over the reason for sale. Are all the documents in order? Can the service bills be produced? Was there any insurance claim made? Can Hyundai service center confirm the number of services done? If these questions can be answered positively then you can consider that car as an option safely.

[WorkingGuru]

I'm buying a used car for my business, it's a partnership firm, so I need to know in whose name would the car be registered in ? It'll be paid for thru the partnership bank account.

Whom should I state as the buyer in Form 29 & 30 ?
Same with the Insurance, who's name ?

Thanks in advance!

[hserus]

The firm's registered name of course. and GST comes into play as well so you are stuck with buying from a dealer.

Originally Posted by WorkingGuru

I'm buying a used car for my business, it's a partnership firm, so I need to know in whose name would the car be registered in ? It'll be paid for thru the partnership bank account.

Whom should I state as the buyer in Form 29 & 30 ?
Same with the Insurance, who's name ?

Thanks in advance!

[WorkingGuru]

Thanks for the quick response!

Originally Posted by hserus

... and GST comes into play as well so you are stuck with buying from a dealer.

Oops! This part I didn't get.

I've almost closed the negotiations. Will I be liable to pay 28% + cess again ? My firm opted composition scheme, so we can't claim ITC!

I don't mind not getting ITC as I'll anyway claim depreciation, but will the firm have to pay any additional tax if we buy the car?

[hserus]

Originally Posted by WorkingGuru

Thanks for the quick response!

Oops! This part I didn't get.

I've almost closed the negotiations. Will I be liable to pay 28% + cess again ? My firm opted composition scheme, so we can't claim ITC!

I don't mind not getting ITC as I'll anyway claim depreciation, but will the firm have to pay any additional tax if we buy the car?

Please read this and check with your CA for clarification. https://taxguru.in/goods-and-service...-vehicles.html

[Chetan_Rao]

Does it make any sense to consider this nearly decade old Fiesta S? If yes, what's a suitable price to quote?