Is buying a 2nd hand car worth it? Discover the process, essential documents needed, and what to check before buying a used car. Master the art of buying a used car and save big on your next purchase!

Indian used car market is ₹2.97 lakh crore in 2025, and in 2026, it is expected to grow by 15%. This means the market will reach approximately ₹3.41 lakh crore in 2026. It shows that people are increasingly turning to used cars. In fact, some used car companies are making more money by selling pre-owned vehicles than established brands like Citroen.

Why Used Car Market is Growing in India

Rising Car Prices: The increasing cost of new cars is making used vehicles a more affordable option for budget-conscious buyers.

Scrapping Policies: The government’s scrapping policies are promoting the disposal of old cars, which increases the supply of used vehicles in the market. After 7-8 years of ownership, people who can afford new cars again, are willing to get their old cars off their chest.

Shift in Perception: Unlike the older generation (boomers) who saw cars as an extension of the family, millennials and Gen Z view them as a utility. If a used car works as good as new car, buy it! A lot of credit goes to finfluencers.

Disposable Nature of Cars: With the scrapping policies and changing attitudes, cars are increasingly seen as disposable items, that will be disposed in 15 years. This is making people think practically than making cars an emotional buy.

Long Waiting Periods: The extended waiting periods for new cars are pushing buyers to opt for used cars instead, as they offer immediate availability.

Is It Worth Buying a Used Car

It really depends on your mobility needs and how you perceive ownership. If a brand-new car feels essential for your lifestyle or self-esteem, then a new car might be the better option. However, if you value practicality and understand that a car's primary role is to get you from point A to B, buying a used car can be a smart choice.

If you have the habit of getting great things at great prices and know that hunting for the right deal takes effort, then buying a used car is definitely worth it. I’ve seen people selling excellent cars at steal deal prices simply because they no longer care about the things they don’t want to keep. Often, these sellers are professionals in elite fields like doctors, who understand that they can earn more in just a few days than they would by negotiating for a 20-30K price difference.

So, if you know such people or have connections in high-paying professions, you can often find well-maintained pre-owned cars at a fair price without much hassle.

Let your network know that you are looking for a used car. Word of mouth can often lead you to sellers who don’t want to go through the long process of selling through dealerships or online platforms. People who are upgrading their cars might be happy to offer their old one at a good price to someone they trust.

In addition to your network, local mechanics can also be a great source for finding used cars. Many mechanics have deep connections with car owners, especially those who regularly bring their cars in for repairs or maintenance. These mechanics often act like flat brokers in a way, taking nominal commissions for helping connect buyers and sellers. It’s their business, and they usually have access to cars that are well-maintained but not widely advertised.

Every city has mechanics who are skilled in this line of work. They not only help you find a car, but also guide you through the entire buying process, including ensuring the car is in good condition, handling paperwork, and even facilitating price negotiations. By involving a trusted local mechanic, you can streamline the process, save time, and make sure you’re getting a good deal.

If you get someone who is great at assisting you in your strides, it can be a steal deal!

Online platforms used to be a fair and trustworthy place to buy and sell used cars, but with the rise of scams—ranging from fake digital arrests to online dating and delivery fraud—everyone is at risk of getting conned, even on the safest of the safe platforms. While these platforms offer convenience and access to a variety of listings, it’s crucial to approach them with caution to avoid falling prey to deceitful sellers or hidden issues.

To get a steal deal from online platforms, you need to look beyond the surface and dig deeper. Some sellers or dealerships may try to make a car appear more attractive by refurbishing it—polishing it up, repainting, or fixing visible damage. However, most platforms that buy cars for resale typically purchase them at a low price, refurbish them, and then sell them at a markup. The problem is, they are not transparent about how much they are making or the hidden issues they may have covered up during the refurbishment process.

You might feel like you've scored a great deal because the car feels almost new after the touch-up, but how will you know if the car has underlying problems? For example, it could be repainted to hide scratches, but the clutch plate might be worn out, the transmission could be on the brink of failure, or even worse, the engine head could be bent.

It is definitely worth buying a used car—but only if you're willing to spend some time learning how to spot a good car or identify what needs to be fixed to make it a solid choice. Understanding the signs of wear and tear and knowing what to look for in terms of the car’s condition can save you from purchasing a vehicle that will cost you more in repairs than it’s worth.

A good approach is to have a trusted mechanic on your side. If you have someone who knows their stuff and isn't out to con you, they can help you identify any issues with the car before you commit. A trusted mechanic can also guide you on what repairs are necessary, how much they will cost, and whether the car is worth the investment.