1. Your budget and needs

When you are looking at the different models of cars that you can purchase from, you may find yourself trying to decide between two cars priced equally. For example, one is older and a fuel-efficient model, while the other is a premium car and only a couple of years old. The choice of the car here will depend on your use of the vehicle and maintenance costs.

If you plan on driving it every day to work, a fuel-efficient model will be pocket-friendly and in the long run, the maintenance costs will also be lower than that of a premium car.

2. Condition of the car

While it is a used car, you need to make sure it is in working condition and ascertain how much you may have to spend on repair. Take the car for a test drive and to a car mechanic, who you trust, to get all the main parts and systems of the vehicle checked.

The mechanic will also give you a rough idea on how much you may have to spend on getting the unavoidable repairs done. More importantly, if you decide to make the purchase, on the day of picking up the vehicle, check if the car is in the condition that you left or if the seller has changed any parts (like replaced new tyres with old ones).

3. Documents

Before the payment, make sure to check all the documents related to the car with the seller. For example, the Registration Certificate (RC) will provide the details on how many times the car has been sold.

Other papers like those related to the tax payments made by the owner, original invoice, NOC from the car loan provider and road tax receipt will have to be verified.

The seller and buyer will have to sign the RTO forms 29 and 30 to make the transfer effective. The seller will also have to submit form 28 (it is a NOC for transfer of the car).

4. Car Insurance

In the car insurance policy papers provided to you by the seller, check for the insured value. It could help become the benchmark for you to make price negotiations.

Secondly, track the No Claim Bonuses in the last 2 to 3 years. Frequent claims of insurance could mean that the car has encountered with several accidents and will require greater repairs and maintenance.

After you decide to make the purchase, transfer the seller's insurance on the car to your name or buy a new policy with 14 days of the transfer of ownership of the car.

It is important to get the insurance transferred so that in case of an accident, claims are not rejected. Until the transfer is completed, only insurance claims related to third parties will be approved.

5. Possible modifications

Apart from the repairs, you need to check if the model is not so old that one cannot make any latest upgrades. The upgrades, especially with regard to making the car more safe and comfortable, will be needed to be taken into account.

If the cost of the upgrade is almost as much as getting a cheaper brand new car, you need to reconsider if the car is worth the amount you are paying.