Pre-owned Car Buying Mistakes That Will Dig A Deep Grave (and How To Dodge Them)

By Author: Kamdhenu Cars
Total Articles: 22
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We have all seen it happen. A friend buys a used car that looks perfect. Ideally, they should be happy.
Two months later, the car is sitting in a garage with a seized engine, or worse, the police are knocking on their door because of an unpaid challan from three years ago.
Buying a used car in India is not like buying a toaster. It is a complex legal and mechanical transaction. The difference between a “Steal Deal” and a “Money Pit” is often just one missing document or one overlooked noise during the test drive.
At Kamdhenu Cars, we hate seeing good people get stuck with bad cars. We have compiled the top 7 mistakes that Indian buyers make—specifically in our markets of Ahmedabad and Kochi—so you don’t have to learn these lessons the hard way.
1. The “Open Delivery Note” Trap (Legal Suicide)
This is the most dangerous mistake you can make.
You buy a car from a broker or a friend. They say, “Don’t worry about the RC transfer right now. Just sign this Delivery Note. You keep the car, I’ll handle the papers later.”
STOP.
A “Delivery Note” is just a piece ...
... of paper. It does not legally transfer ownership.
The Risk: If the previous owner has a loan on the car you didn’t know about, the bank can seize your car tomorrow.
The Reverse Risk: If you sell your car and don’t transfer the RC, and the new owner hits someone, YOU go to jail. The Supreme Court of India has ruled that the person named on the RC is liable for accidents.
The Kamdhenu Fix: We never do “Open Delivery.” We process Form 29 and Form 30 immediately. Until the RTO acknowledges the file, the deal isn’t done.
2. Ignoring the “Hypothecation” on the RC
Grab the RC (Smart Card) of the car you want to buy. Look at the bottom. Does it say “Hypothecation: [Bank Name]”?
If it does, that car does not belong to the seller. It belongs to the bank.
Many buyers pay the seller cash, thinking the seller will close the loan. Instead, the seller disappears, and the bank recovery agents come for the car.
The Fix:
Never buy a hypothecated car unless the seller shows you:
Bank NOC (No Objection Certificate).
Form 35 (signed by the bank).
Without these, the RTO will never transfer the car to your name.
3. The “Odometer Scam” (And How to Spot It)
“Low Mileage” sells cars. Sellers know this. That is why odometer tampering is rampant in the unorganized market.
You might see a 7-year-old Toyota Innova with only 45,000 km on the clock. Suspicious.
How to catch them:
Check the Pedals: Look at the brake and clutch rubber. If the car has only done 40k km, they should look fresh. If they are worn down to the metal, that car has done 1,00,000+ km.
The Steering Wheel: Is the texture smooth and shiny? That takes years of friction to happen.
Service Record Gap: If the service history stops abruptly in 2021 and resumes in 2024, run away. They likely serviced it at a local garage to hide the high mileage usage.
4. Kochi Special: The “Spare Wheel” Rust Check
In Kerala, flood cars are a reality. Sellers are smart; they clean the seats and change the carpets. But they often forget one place.
The Fix:
Open the boot. Lift the carpet. Lift the spare wheel.
Look at the metal floor under the spare wheel.
Is there rust?
is there fine silt or dried mud?
Does it smell like a damp basement?
If yes, that car was swimming. Do not buy it, no matter how cheap it is.
5. Ahmedabad Special: The “AC Compressor” Gamble
In Gujarat, the AC is the most overworked part of the car. A failing AC compressor is a ₹25,000 to ₹40,000 expense.
The Mistake:
Buyers turn on the AC during a 5-minute test drive. It blows cold air. They think it’s fine.
The Real Test:
Drive the car for 20 minutes in city traffic.
Does the cooling cut off when the car stops at a signal?
Is there a loud “clicking” or “grinding” noise from the engine bay when you switch the AC on?
Does the engine RPM drop significantly and struggle when the compressor kicks in?
If yes, the compressor is on its deathbed.
6. Forgetting the “Challan History”
You buy a car. A month later, you go to renew the insurance, and you find out there are ₹15,000 worth of unpaid speed camera fines pending on the vehicle.
Guess who has to pay them now? You.
The Fix:
Before you shake hands, pull out your phone.
Gujarat: Visit the official E-Challan Gujarat portal.
Kerala: Check the Kerala Police or MVD website.
Universal: Use the mParivahan app. Enter the car number. It will show you every pending fine. Deduct this amount from the final price.
7. The “Insurance Transfer” Blunder (NCB Trap)
You buy a car that has “Valid Insurance.” You think you are covered.
But did you know that if you don’t transfer the policy to your name within 14 days, the claim can be rejected?
Also, the No Claim Bonus (NCB) does not transfer to you. It belongs to the previous owner.
Example: The seller was paying a low premium because he had a 50% NCB discount. When you transfer the policy, you have to pay that 50% difference to the insurance company to make the policy valid. Many buyers get shocked by this “hidden” cost.
Conclusion: Don’t Let Fear Stop You, Let Knowledge Guide You
Reading this might make you feel like every used car is a trap. It’s not. 90% of cars are genuine, and 90% of sellers are honest. But it only takes one bad apple to ruin your finances.
The easiest way to avoid all 7 of these mistakes?
Buy Certified.
When you buy from Kamdhenu Cars, we have already:
Checked the Challans.
cleared the Hypothecation.
Verified the Odometer.
Inspected for Flood/Rust.
We do the worrying so you can do the driving.
Want to sleep easy?
See our fully verified inventory here
Related Articles
What Does “Certified” Actually Mean for a Used Car?
Used Car Loans: Interest Rates and How to Get Approved
Selling a Car in Kochi? Why Online Quotes Often Change
Not Just a Car, It’s an Asset: Why Our “Buyback” & “Permagard” Are Game Changers
FAQs
1. What is the biggest mistake people make when buying a used car?
The most common mistake is accepting an open delivery note instead of doing a proper RC transfer. Without Form 29, Form 30, and RTO acknowledgment, you’re not the legal owner—even if you’ve paid for the car.
2. How do I check if a used car has a bank loan (hypothecation)?
Look at the RC. If it mentions a bank name under “Hypothecation,” the loan is still active. You should only proceed after the seller provides the Bank NOC and Form 35.
3. How can I detect odometer tampering in a used car?
Check pedal wear, steering wheel shine, and gaps in service records. A 7-year-old car showing only 40,000 km is often a red flag.
4. How do I avoid buying a flood-damaged car in Kochi?
Lift the spare wheel in the boot and check for rust, fine silt, or a damp smell. Flood cars are often cleaned superficially but the spare-wheel well always reveals the truth.
5. Why do AC compressors fail more often in Ahmedabad?
The extreme heat forces the AC to run harder. If cooling drops at signals or you hear clicking/grinding when the compressor kicks in, it may need a ₹25,000–₹40,000 replacement.
6. How do I check pending challans before buying a used car?
Use the Gujarat/ Kerala e-challan portals or the mParivahan app. Enter the vehicle number and review all unpaid fines before finalising the deal.