6 Questions To Ask Before Buying A Used Car With A Pre-Owned Car Loan

Before buying a second-hand car, you should tackle a few important questions regarding your vehicle requirements, usage, budget, income, creditworthiness, alongside vehicle purchase details and features. The answers will help you understand what choices to make for your new pre-owned car. Keep reading to know more!

6 Essential Questions When Buying A Used Car

1. Why Do I Need a Car?

Identifying your objective for buying a car helps you finalise the broader model and features you'd like. Different people have different utilities for a car; for some, it's the ease of the daily commute; for others, it's a matter of luxury, and for some, it's a business requirement.

Used cars in India can be found in various models, including hatchbacks, sedans, SUVs, and luxury vehicles, each of which helps you fulfil different purposes. Listing out and prioritising your reasons helps you pick a direction, filter the price range, and further zoom in on the model of the car that you wish to buy.

2. Which Car is Suitable for My Income?

Once you've identified the objective and priorities, the next step is to have a rough estimate of how much you are willing to spend. The affordability depends on your income stability, other liabilities and accrued savings available. Also consider things that could impact costs in the longer run, like mileage and fuel efficiency; prioritise fuel-efficient models or hybrids due to rising fuel costs.

The starting price of a used car in India can vary greatly, with some available for as little as INR 25,000; having a broader budget helps you sift through options faster as you explore popular used cars for sale. Also, keep in mind that if you're considering used car financing options, your car's cost will have a bearing on the affordability of the EMI.

Also Read: Leasing vs Buying a Used Car – Which is Better?

3. What Are the Main Features I Want?

Every car comes with some basic features; however, now you can have advanced and customised features like blind-spot warning, AI integration, and more with top variants. While these features are available, they all add to the cost of your vehicle.

Depending on the utility of your new car, you can decide the features that you would like your pre-owned car to have. Based on this, you may then want to look for a car that fits your requirements. Knowing what features are a must is better to know beforehand, as this will make the car shortlisting process simplified, targeted and convenient.

4. Do I Have the Basics in Place?

Purchasing a pre-owned car means performing due diligence to ensure you're getting your money's worth and are legally compliant with all requirements. Before you choose an old car, you need to ensure that the car’s registration papers, warranty, car insurance and other documents are in perfect order. You should also ask a professional car expert to check the condition of the car, ensuring it is certified to evaluate quality.

When conducting your checks, use the VIN to obtain a vehicle history report to check for past accidents or title issues. Look for discrepancies between the odometer and service records to check for odometer tampering. Finally, in 2026, ensure the used vehicle is BS-VI compliant to avoid bans on older diesel or petrol engines.

Also Read: All You Want to Know About Pre-Owned Car Loans

5. Is my Credit Score Sufficient?

Your Credit Score plays an important role in deciding your eligibility for the loan offer. Lending institutions verify your score from the Credit Institution Companies (CIC) like Transunion CIBIL, CRIF, Experian or Equifax.

A bureau score of 750 and above is generally considered a good score and ensures that you get an affordable interest rate on the loan alongside other favourable loan terms and conditions. A lower score usually results in a higher interest rate being charged or, at times, even rejection of the application.

6. How Do I Plan to Finance My Used Car?

Buying a car is a big decision and also involves a substantial cost. Most people opt for a used car loan rather than dipping into their savings to benefit from competitive rates and an easy repayment tenure. Plan well for your purchase; budget beyond the purchase price to include insurance and registration transfer fees.

Choose your purchase time well; strategic timing at the end of the month or year can yield better deals on used cars. Set a firm maximum budget and be prepared to leave if the seller cannot meet it during negotiations. Finally, include potential costs for immediate repairs or upkeep in your budget when buying a used car.

Also Read: 7 Factors to Consider Before Applying for a Used Car Loan

To Conclude

These are some of the main questions to ask before buying a pre-owned car if you want to ensure your decision is well-informed. Check Poonawalla Fincorp's Pre-Owned Car Loan offering a high loan-to-value ratio at an attractive interest rate with a hassle-free application process. Avail now!

FAQs

What are some popular brands to consider when buying a pre-owned car?

Popular car brands in India known for their reliability and resale value include Maruti Suzuki, Hyundai, Honda, and Toyota.

What to keep in mind when test-driving a second-hand car?

Drive on both city streets and highways to test a used car's acceleration, braking, and steering. Look for unusual noises, oil leaks, or excessive smoke from the exhaust when checking engine health.

What is crucial when buying a second-hand electric vehicle?

The state of the EV battery is the most critical factor when buying a used electric vehicle. It is the car's most expensive component and directly impacts your costs and depreciation value.

What car body type is ideal for daily city driving?

The hatchback and SUVs are the most ideal body types for cities, since they're compact enough to manoeuvre easily and offer good fuel efficiency.

Is it important to certify a pre-owned car?

Yes, certifying a pre-owned vehicle before you purchase it is a must-do. The certification process for used cars typically includes a detailed evaluation of the vehicle's condition and history. Plus, many platforms offer warranties on certified used cars, providing peace of mind to buyers.

Is it safe to explore online used car buying platforms?

Yes, in fact, many online used car platforms ensure that cars are thoroughly inspected before being listed for sale. Plus, some online used car buying platforms offer home delivery services for purchased vehicles.