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Tags: Used Car | Roshun Povaiah | old | insurance | careful | car | buyers | Broker
How not to get cheated when buying
a used car
Prashant Mahesh, ET Bureau Aug 16, 2013, 12.40PM IST
Buying or selling used cars through advertisements in
newspapers or websites is catching on. This helps
individuals eliminate intermediaries and save costs for
both buyers and sellers by as much as 10%. However,
it could also be very risky, because you are dealing with an
unknown person.
For example, there have been cases where sellers haven't
disclosed that the car has been hit by a major accident or
the engine has been damaged in rains. Some may tamper
with the odometer reading and show far lower number of
kilometres the car has run.
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Some buyers may promise to make part-payment at a later date, but the cheque may not be honoured.
That is why you should do your due diligence before getting into a transaction , say experts. "If you are a
buyer, you should physically examine the car in broad daylight , check the original documents, including
insurance, meet the owner in person, check the no-claim bonus and odometer reading," says Rajesh Sood,
MD and CEO of ecardlr.com. "As a seller, transfer the car only after you receive the entire funds," says
Roshun Povaiah, of cartoq.com, an automobile website.
Buying a Car
"Walk away from the deal if the seller asks you to transfer a token amount before you can see the car,"
says Banwari Lal Sharma, AVP (marketing), carwale .com. Inspect the car in daylight. Check for signs of
any kind of accident or damage due to flooding.
Take a test drive to ensure that the engine is in good shape. "Look for welding signs on the doors. If there
are signs, it indicates , prior damage to the car, something you need to question the seller about," says
Uday Prabhu of Car Choice, who deals in used cars. "Open the doors, bonnet and check the hinges.
If there is a crackling sign, it indicates that the car has been poorly maintained," says Rajesh Sood. Finally,
go through the documents carefully. Look for the car registration copy (RC book/card). Check how many
owners the car has passed through and the year of manufacturing. "These details should match with what is
advertised or communicated to you," says Sharma.
All previous maintenance papers indicate how well the car has been maintained. Maintenance records also
help you verify how many kilometres the car has been driven.
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How not to get cheated when buying a used car - Economic Times http://articles.economictimes.indiatimes.com/2013-08-16/news/4141771...
1 of 3 8/21/2013 2:03 PM
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No-claim Bonus
Check insurance history of any car. Check for no-claim bonus on the car. If the car does not have a NCB, it
means the user has claimed insurance benefit, and the car has met with an accident . "If there has been an
accident, ask how much money was spent on repairs. If the bill is high, it indicates the car has been badly
damaged.
If the car has been damaged from the front, just avoid buying the car," says Sood. Depending on the extent
of damage, you can decide whether you wish to buy the car or not.
Is the Odometer Faulty?
Many sellers tamper the odometer reading to get a higher resale value for the car. So, if the car has
already run 70,000 km, the dealer may try to tamper with the odometer and can bring it down to 45,000 km;
as by doing so, he can make anywhere between Rs 20,000 and Rs 50,000 more on a resale. As a buyer,
you need to be cautious about such tricks.
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For example, tyres are changed once the car is driven around about 40,000-50 ,000 km. So, if the odometer
reading is only 30,000 km and the tyres are new, it could indicate a tampered odometer. Similarly, check the
paint for an accident . If there is a difference in the paint colour, or drops of paint spilled on it, it is possible
the car has gone through an accident and has been repainted.
Focus on Full Payment
Even the seller needs to be careful while dealing with strangers met via advertisements . "You may enter the
deal by taking some token money. Don't hand over the original car documents until you have all your money.
The transfer documents should be signed only after the entire payment has been realised," says Sharma. At
the time of delivery, have a delivery note signed by the buyer that clearly states that the buyer has taken the
possession of the car and he is responsible for the liabilities arising from that date.
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Readers' opinions (14)
Sort by: Newest | Oldest
17 Aug, 2013 12:54 PM
Visswanath Vadde (Hyderabad, Andhra Pradesh)
Good Information
17 Aug, 2013 01:33 AM
jim (NY)
I find the problemis knowing what I should pay. KBB and the rest are junk. I want to know what the "invoice" is of a
used car. Anybody try the Vinny iphone App? I amandroid right now.
16 Aug, 2013 10:41 PM
Bala Murugan (Bangalore, India)
Very informative article
16 Aug, 2013 08:48 PM
BAHAR ROY (Guwahati)
good one
16 Aug, 2013 06:53 PM
ghalib (hyderabad)
One more thing to consider, Make sure car gets transferred to buyer before handing over the keys to him. At time
guys buy the car fromyou and don't register in their name. It is quite common with dealer who wants to avoid
registration in order to avoid multiple transfer and lesser resale value. But if car meets an accident before
registration gets transferred, you are liable for that accident.
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How not to get cheated when buying a used car - Economic Times http://articles.economictimes.indiatimes.com/2013-08-16/news/4141771...
3 of 3 8/21/2013 2:03 PM