The demand for cars in India is steadily increasing every year. Both demands for brands new cars along with used cars are on the rise. In fact, the sale of used cars is rising faster than that of brand new ones, as stated by officials from Mahindra and Mahindra and Maruti Suzuki, two of the leading car brands in the country. The growth of the used car market in the country was around 17 percent in 2012-13, 19 percent in 2013-14 and 15 percent in 2014-15 so far. Officials believe that the growth would be sustained in the double digit figures in both Tier I and Tier II cities.
There are several reasons for which many people are opting to buy used car in Mumbai. Most families in Mumbai have working spouses who need to go in different directions to reach work. Having two cars in the family can be a lot of help in terms of cost and time savings. Also, jumping segments in used car in Mumbai market is easier than new car markets. For example, with a budget of Rs 3 lakhs, you would be able to settle for an entry level hatchback in the new cars market. However, in the old cars market, you can opt for a sedan or an SUV even. This is also one of the reasons why first time buyers are opting for used cars instead of brand new ones- they can simply skip the entry level segments and buy a premier model for the same amount.
The second hand car market in Mumbai has participants from all quarters- individual or private sellers, used car dealerships and certified used cars stores such as Mahindra’s First Choice, Maruti Suzuki’s True Value and much more. No matter which corner of the city you live in, you would be able to locate a car of your choice from a dealer of your choice as well. The range of prices in which the car is available is also quite high. You can opt for entry level hatchbacks such as Hyundai Eon, Maruti Alto 800, Datsun Go and others and also luxury cars such as Audi, Mercedes Benz and BMW models. The used luxury cars market may form only 5 percent of the whole used car market, but its growth is around 35 percent which shows that in the coming years, it would become an important segment.
Financing options for used cars are also available for those who would like them. The interest rate charged is comparable to that of new cars, at around 9 to 10 percent. However, the interest rate on luxury cars is around 15 percent which is comparable to the interest charged on a new car of the same price range (Rs 15 lakhs to Rs 20 lakhs). Therefore, when it comes to affordability, it would be best to opt for a used car rather than a brand new model.
There are a lot of salient features of buying used cars. However, some caution must be exercised as you are never too sure about the quality of the car. The true quality of a used car is known only to the seller or the dealer. Therefore, you should complete as many inspections as possible before buying the car. Some of the common points on used car in Mumbai that you should check up have been discussed here.
- Checking the background of a car
You should always conduct a background check into the model that you are thinking about buying. Certain makes of cars are outdated now or have been withdrawn from the market because of certain problems in them which is why you should not buy them at all. You can look up the reviews of certain cars online and also read up discussions on various forums to find out whether you should opt for a particular model or not.
It also helps to do a background check on the dealer from whom you are thinking of buying the car- the customer friendliness, fairness in dealings and other aspects.
- Check up the price of a particular car
Go online to determine the true price of a car that you intend to buy. Knowing the price beforehand would help you negotiate well with the seller. There are several online calculators that you can use to find out the price of a car. All you have to do is enter the brand name, the make of the car, year of manufacture, type of engine (petrol or diesel) and the name of the city in which you are looking to buy the car. You will be shown complete information about the car. You can use these facilities for free.
- Test Driving the Car
Take the car out that you want to drive for a spin in order to see whether it is worth buying. Go on a long drive so that you can determine whether it would be a good buy or not. Check for noise in the engine when you start up the car, speed it on the highway and are driving the car over speed breakers. If you do hear an unfamiliar sound, then you should get it inspected by a trusted mechanic. If you do not know how to drive, then you can take along a friend who knows how to drive in order to find out whether the car is suitable for you or not.
- Checking the papers of the car
Not only does the quality of the car matter but also the order of its papers. If a particular car’s papers are not available, it would be best to avoid buying it because getting the ownership title transferred would be difficult. Check if the car’s Blue Book, Pollution Control Certificate, Form No. 35 and NOC (in case the car was bought using finance from a company), insurance papers and also the road tax clearance papers are in order otherwise you would have to struggle a lot to get ownership of the car.