Used Car Market Is Gaining During Pandemic

COVID-19 is not only a global pandemic and public health crisis; it has also severely affected the global economy and financial markets. The significant economic impact has already occurred across the globe due to reduced productivity, business closures, loss of life, trade disruption, and decimation of the tourism industry.

Job losses impacting the income of millions of working personnel have left them with lesser purchasing power. People are now limiting their budget for high-priced purchases. They are also planning to spend their hard-earned money more wisely. So, they are interested in purchasing a pre-owned car instead of a new one.

Importance of private car during a post-pandemic situation

Covid-19 Pandemic is altering several habits of people across nations, including the way they used to travel. People are now looking forward to using a private car during corona crisis to maintain social distancing. Contemplating the economic state of the nation and growing concern for the safety of their family member, several people are rationing their budgets for high-ticket assets. The consumers who were planning to buy a new car last year would now prefer to buy a pre-owned car due to their limited budget. All this has resulted in surge in demand for used cars.

Choose the used car wisely

There are several things to check when you are buying a used car. Some of these things are as follows.

Check the car and its paper thoroughly: You should inspect the car by a mechanic you trust. It is important to check the existing insurance paper of the car that you are going to buy. It will help you to understand whether the vehicle has had any accidents or claims related to those. A quick way to see this on the policy is to note the no claim bonus (NCB) percentage applied. Check all the filters of the used car as they need regular cleaning and oiling. It helps to understand how well the car has been maintained.

Check the engine number and chassis number match the number in the registration paper before purchasing a used car. Check the brakes and ensure for any vibration or any strange or squealing sound from the brake pedal. Check the condition of all tires. Check under the hood for signs of damage, dents, or rust.

Transfer registration certificate (RC) of the used car in your name: You have to fill out and submit Form 29 and Form 30 issued by the RTO in the jurisdiction you live in. The form should be signed by both the previous owner and you. If the car is registered in a different jurisdiction from yours, a NOC from the jurisdiction’s RTO will help speed the process. Then, you will receive the name-changed RC copy. Check that there is no pre-existing pending loan on the used car that you are buying. Check the history of service records and road tax receipts with the last updated payment before purchasing the used car. Check the valid Pollution Under Control (PUC) certificate.

Transfer of No Claim Bonus: NCB is given to the insured and not the insured vehicle. The insurance policy can be transferred to the new owner but not the NCB. The new owner has to pay the difference on account of the NCB for the balance policy period.

Clean and fix your car before the first drive: It is necessary to clean the car thoroughly. It will be best to change all the fluids before using the car.

The mentioned above information will help you to understand why the used car market is gaining during the post-pandemic situation. You will also get the proper guideline for purchasing a used car.