Many people believe that buying a second-hand car is more sensible than getting an all-new one from the neighbourhood showroom. This is because the biggest sufferer of depreciation is the first owner of a new car. Depending upon what brand and model you have chosen, a car’s value can depreciate by as much as 50 percent within the first 2-3 years of ownership. Along with a sense of pride, you also drive out a lot of markdown with you the first time you take it home! Since this is absorbed by the first owner of the car the loss to the subsequent buyer is minimised.
Now that you have bought a good conditioned used car from the market, the first thing that you need to do is – get it transferred to your name.
For that you will need to inform the RTO about your new possession and ask for the transfer of ownership by submitting the current registration card (which will be under the old owner’s name). Once that is done you will have to get it insured under your name.
There are two ways in which you can do this:
Transfer Existing Policy – Let us say the car has about 5 months of insurance left when you buy it. This policy will, obviously, be under the name of the original owner of the car but you can transfer this very policy in your name. This is a simpler and convenient way and saves you money since the original owner has already paid for the insurance value of the car. To make the transfer process seamless, submit the new RC card which has now been transferred in your name.
Get a New Policy – The other alternate you have is to get an all-new policy from the provider of your choice. This way you can also add any new components/features you want and discard the ones you don’t require. Once you have the RC registered in your name, you can also buy insurance online.
Always choose a policy provider which has good reviews, whose car insurance claim process is quicker and rejection ratio is lower.
More often than not, people just focus on getting a car that is in a good condition, at favourable prices and they do not pay attention to the important basics such as insurance. Apart from insurance being mandatory by law, it is the best gift you can give to yourself and your family. It saves you from any financial implication as well.