Outlook Money
A second-hand car may cost less upfront, but unpaid dues, insurance gaps and undisclosed damage can increase your expenses. Check these financial risks before finalising the purchase.
Third-party insurance protection may continue after the sale, but the policy must be transferred to your name. Apply to the insurer within 14 days and check the coverage.
No Claim Bonus (NCB) belongs to the policyholder, not the vehicle. Ask how the transfer affects your premium, and review previous policy records for clues about past claims.
Outstanding car loans can delay ownership transfer, while pending challans may create additional costs. Check the registration certificate, verify dues and obtain the lender’s clearance if a loan remains.
Flood exposure, accident repairs and worn-out components can lead to costly problems later. Get an independent inspection, verify authorised service records and compare the odometer reading with available history.
Insured Declared Value (IDV) determines the maximum payout for theft or total loss. Compare the quoted IDV with the car’s market value and review depreciation, policy exclusions and add-ons.
Match the RC with the seller’s ID and vehicle numbers, check Vahan records and e-challans, obtain Form 29 and Form 30, and arrange insurance and ownership transfers.