Buying a used car in India — tips and precautions

Key things to check before buying

Confirm the vehicle is loan-free. Before completing a purchase, get a Form 35 NOC directly from the lending institution. Do not rely on verbal assurances or informal letters saying the loan has been cleared.

Bring the right tools to the inspection. Carry paper and pen to note down the engine and chassis numbers so you can verify them against the ownership documents. A small flashlight helps you inspect hard-to-reach areas, and a music CD (or your phone) lets you test the audio system.

What to examine:

• Body condition — look for signs of accident damage or recent repainting
• Tyre wear patterns on all four wheels
• Oil quality as an indicator of maintenance history
• Engine behaviour at idle and under acceleration
• Steering responsiveness without excessive play
• Brake performance during a test drive at highway speeds

Avoid vehicles with a recent full repaint — this often hides underlying damage. Take a proper test drive on varied roads, not just a short loop around the neighbourhood.

Precautions when selling

When you transfer ownership, make sure the buyer completes the registration change into their name before you hand over the vehicle. If you remain the registered owner after selling, you can be held liable for accidents the new owner causes. Either complete the RTO registration transfer together at the same time, or hold on to the vehicle until the updated documents come through.