How to Avoid Serious Scams While Buying a Used Car in India

Buying a used (second-hand) car can save you a lot of money compared to buying a new car. A new car loses 15-20% of its value in the first year and about 50% in 5 years. This means that a 4-5 year old car can give you excellent value, if you buy it wisely.

But many people avoid buying a used car due to the fear of fraud and scams by dealers. If you fall into this category, this guide will help you buy a used car in India scam-free and stress-free.

Step 1: (Pre-inspection) Do your research before meeting the car seller.

Know the common problems of the car model.
Some cars have minor “non-issues” (e.g., Hyundai Santro headlight leaks, Maruti Dzire tail lights).
Other cars have serious problems (e.g., Renault Kwid oil sump cracks). Avoid cars with known engine-related defects. 🔴
Research the internet or owner forums to know what problems to expect.

Find the right market price (Realistic Price Range)

Check 5-10 listings on online marketplaces for the same model/year.
Average the prices and deduct ₹50,000–₹1 lakh (dealers usually inflate).
Knowing the actual price prevents overpaying.

Step 2: Check vehicle documents

Service history

Take the car to an Authorised Service Centre (ASC) – Check if the car was regularly serviced at an Authorised Service Centre (ASC).
It helps to check if the odometer is correct. Gaps in service history = possible odometer tampering 🔴.
You can use online services like Car24, Car Info, CarDekho (paid) to get the service history.

Registration Certificate (RC).

Check the owner’s name – The owner’s name should match.
The RC should be clear (no hypothecation mentioned).
If a loan has been taken, make sure that NOC is available and no insurance is pending.

Insurance and claim history

Check past claims to find accidents.
Check pending challans and legal issues.
Check challans on your state RTO websites (parivahan.gov.in). Check
Avoid cars with large fines or legal court cases.

Step 3: Inspect the engine and parts

Basic engine check.

Even if you are not a mechanic, you can do a simple check.

Use the dipstick: Check the oil

Gasoline car oil should be golden/brown (not black 🔴).
Diesel car oil is usually black – this is normal 🟢.

Check for leaks.

Park on a clean floor, drive for 10 minutes, check for oil/coolant leaks.
Check for noise and smoke.
Start the engine, listen carefully.
Strange hissing, knocking, or colored smoke : (don’t buy)🔴.

Parts and replacements

Make sure the replacement parts are OEM or from a reputable brand (not cheap aftermarket).

Use an OBD2 scanner.

You can also do the online purchase yourself, plug in to check the error code.
You can also get it done with the help of an expert.

Check the battery age, if it is more than 2 years old? You can reduce the price.

Step 4: Inspect the body and exterior

Paint and panels

Minor scratches/dents are fine.
Mismatched paint = accident repair 🔴.
Cracks filled with putty or bulging paint, which could be the cause of a major accident. Avoid 🔴.

Check for rust

Use a selfie stick + phone camera to inspect the underbody.
Heavy rust : Avoid 🔴.
Check for accident marks.

Check for factory spot-welding marks (must be original).
All glass panels should be the same code/year, check.

Check tires

Negotiate the price if there are high-wear tires.

Step 5: Inspect the interior and electronics

Check the condition of the seats, dashboard, buttons, and switches.
Make sure the AC, lights, wipers, and infotainment work.
Minor wear and tear is normal, but major electronic failures : Don’t buy 🔴.

Step 6: Take a long test drive (20-30 minutes)

Check the engine and gearbox

Check that there are no unusual noises.

Hard clutch or loose gear shift :🟠 (Repairable).

Brakes : The car should stop straight, no jerking.

Suspension : No loud bangs or thumps.

Steering : The car should not turn left/right on a straight road.

Step 7: Decide on the Red/Orange/Green Flags to Use

🟢Green Flag : Totally Fine (Minor issues (scratches, worn tires)).

🟠Orange Flag : Fixable issues (clutch, alignment).

🔴Red Flag : Don’t Buy (Engine noise, oil leaks, accident damage, legal disputes: Avoid buying).

Step 8: Final Considerations.

Don’t worry too much about E20 fuel compatibility for older cars.
A well-maintained car that is 5-7 years old will still last another 6-7 years.
Focus on document clarity, accident-free condition, and proper maintenance.

Quick Red Flag 🔴(Avoid this car)

🔴 Accident-prone (repainted doors/roof, replaced glass, welding marks)
🔴 Odometer tampering (irregular service history, sudden mileage drop)
🔴 Engine leaks, strange noises, or colored smoke
🔴 Fake or unclear documents (loan hypothecation, no NOC, outstanding bills)
🔴 Underbody rust