Guidelines to junk the old car you no longer want or can't use anymore

If you're looking for the best price, try and sell it directly. But if you want fewer hassles, enlist the service of an entity that deals in pre-owned cars

With the air quality in the National Capital Region (NCR) plummeting to new lows, the Supreme Court on October 29 ordered the impounding of diesel vehicles that are more than 10 years old and petrol-driven ones more than 15 years old. If you have an old car that you have hung on to, whose life span exceeds these limits, give some thought to the modus operandi you will adopt for selling it, so that you are able to get the best possible price. Here is a roadmap for doing so.

Price impact: Since the issue of polluting vehicles has been brewing for a while, prices of older cars have been falling for some time. Diesel cars have been hit harder than the petrol variants, since their supply is higher. “Ever since the ruling came at the end of October, we have witnessed about 10 per cent decline in the prices of diesel vehicles, and around five per cent in petrol cars,” says Gajendra Jangid, co-founder and vice president, Cars24. Prices may plummet further in the coming days. According to Rush Parekh of Team-BHP.com, “Resale values of even those vehicles that are within two years of the age limit set by the Supreme Court have been hit.”

But if you have a diesel car that is seven or eight-year-old, it’s best to wait for six months to a year before selling. “The dealers may now tell you that the prices are falling. But prices will stabilise in some months. Seven- to eight-year-old cars are usually in good condition. Sellers don’t need to get rid of them in panic,” says Shubh Bansal, co-founder, Truebil.

If you own an old car that has been affected by the Supreme Court directive, your best bet may be to sell it outside Delhi-NCR. “India is a vast country with extremely low car penetration -- just 40 cars for every 1,000 citizens. Hence there is a massive market for cheap cars in the neighbouring states and beyond,” says Parekh. Also, small cars and multi utility vehicles are usually in more demand in the used car markets than other segments.

Scrap older cars: If your car is already older than the age specified in the Supreme Court order, it’s best to scrap it as it will be difficult to find buyers willing to pay a better price. A few online platforms like CarDekho are planning to launch this service for the retail market. “When scrapping a car, ensure that you get a scrap certificate from the dealer. Also, get the parts which carry the engine and chassis numbers and submit them to the Regional Transport Office to ensure that your car is not misused,” says Rajat Sahni, CEO-used cars, CarDekho.

Get a valuation estimate: Before you make any further moves to sell your car, do your homework and get an estimate of the price it is likely to command. Online research will help. “Nearly all automotive websites have a used-car price checking tool. They will help you get an estimate of the value of your car. Also, check the asking prices for models similar to yours in online classifieds,” says Parekh.

According to some experts, classifieds may not offer an accurate picture. “On a classifieds site, the stated price is what the seller desires for his vehicle. This is usually higher than what he ends up getting in reality,” says Jangid. At times, sellers make the mistake of equating the insurance declared value (IDV) of their car with its market value. Again, this is not right, as the IDV does not take into account aspects like how much the car has travelled, the extent of damage and repair it has undergone, and so on, that have a bearing on market value. Your best bet is to get quotes from a variety of sources and then begin negotiations.

Sell by yourself or take professional help? Next comes the question of whether you should try to sell the car yourself or use the services of an agency that deals in used cars. The answer depends on what you value more -- price or convenience. “You will get the highest price if you sell the car yourself, but that will involve some time and effort. On the other hand, if you desire convenience, you can trade your existing car in at the dealer you are buying your next car from, or sell it to an organised player, like True Value, Mahindra First Choice, Cars24, and so on, who deal in pre-owned cars,” says Parekh.

All these routes have some downsides. If you try to sell directly, you may have to negotiate with a number of strangers. Payments could turn messy. The entire amount may not be paid at one go. Only some part may be paid via the banking channel and the rest in cash. Getting the ownership transferred will also require some legwork on your part.

Many people hand over their old car to the dealer from whom they plan to buy a new car. The risk in taking this route is that the dealer may offer you a good price for the old vehicle, but may reduce the discount on the new car, or vice versa. For the best deal, you are better off selling your old car to one entity and buying from another. “But if the manufacturer is offering an exchange discount, go for it. The overall price will be higher if you add exchange discount and price of the car,” says Sahni.

Players like Mahindra First Choice and True Value quote a price at which you can sell to them. Others like Cars24 quote a price and also charge a service fee, which varies from Rs 1,000-5,000, depending on the services that the seller avails from them.

Dress up prior to the sale: Owners should preferably get all repairs and maintenance of their vehicles done at authorised dealerships and maintain records pertaining to the service history of their cars. Doing so helps fetch a better price. All the documentation for your vehicle should be in place, such as the registration certificate (RC). Finally, make sure that the car is in good shape. Damages should be repaired. If, by incurring small expenses, you can make the car more presentable, do so, as first impressions matter in a sale. “However, avoid putting in new tyres or painting the car. The buyers will discount these when purchasing the car, and it will cost you extra money,” says Bansal.

What customers should do

Those whose vehicles have less than a month left, can get the state transfer NOC from the authority to a particular city only (these cities have been decided by the authority). For example, if the customer has a Delhi registered diesel vehicle and has a month left until the expiration date, he can get the NOC for any tier-3 city

Customers whose vehicles have already  expired may go to scrap dealers/companies (most of these firms are in Mayapuri in Delhi) and can get the best value through negotiation

Customers whose vehicles have already  expired can also seek solutions from aggregators (like CarDekho) where they don't need to get into the implications of the transaction

If the diesel car is seven years old and petrol is 12 years old, don't sell in haste. Wait for six months for prices to stabilise

 

Ensure the car is transferred

Don't just focus on the price, ensure that the buyer completes the transfer

In case the transfer is delayed, the previous owner will be held liable for traffic offences and other problems

Take the buyer's ID and address proof and a declaration that he has bought the car and is responsible for it from the date of purchase

Online platforms offer services that ensure the car is transferred in the name of the buyer