A previously owned bus may come at lower prices than a new one under certain circumstances. To get clarity on the ownership costs, one must include maintenance and repair costs. These costs may turn out to be higher if the used bus needs to be repaired, increasing its overall price.
Moreover, if a pre-owned bus breaks down in the middle of a journey, an owner can end up with unhappy clients. One can easily avoid this scenario by choosing the right used bus that will result in a profitable business.
Considering this, here are some points to factor in before purchasing pre-owned buses in India.
5 things to know before you purchase a used bus in India
Before investing in the transportation industry, it is important to decide the type of bus to buy. In case of low budget and short-term usage, one should go for a used bus.
However, before making such decisions, a potential buyer must consider the below-mentioned points for maximum investment benefits:
1. Condition of the bus
It is important to properly inspect the condition of a pre-owned bus before purchasing it. One should check the vehicle’s frame, drivetrain, interior, etc., for any serious damage. In addition to this, a proper inspection of bus seats for wear and tear and other interior features like audio system and HVAC system for substantial damages. Ideally, it is practical to buy a bus with less damage in order to curtail costs.
2. Servicing requirements
Before buying a used bus, one should locate all the nearby service providers if the bus needs maintenance. A regular vehicle professional might not be aware of the functioning of a pre-owned bus’s engine and transmission. So, if a buyer does not find a suitable service station before bus investment, it can take a substantial amount of time and expense to find the right service later. Further, if the used bus is beyond warranty, one needs to bear costs for replacement parts. It will also be a hassle to find those parts in the first place.
Also Read – What is Tax Planning and How to Save Tax?
3. Intended use of the bus
It is crucial to determine the intended use of a pre-owned bus before buying it. One might use a bus for longer trips like cross-country journeys, airport transfers, tours around the town, etc. Proper amenities like luggage cabins, a strong chassis, and an engine are necessary for these usages. In case a previously owned bus does not come with these features, one should install them separately against additional costs.
4. History and maintenance record
A used bus’s history are vital to consider before purchasing it. In this regard, one must enquire about the maintenance records of a bus from its sellers. Maintenance is a crucial point to factor in compared to mileage and other details. A bus with a few miles but a bad history is less valuable than one with higher miles and a great maintenance record. Additionally, one must check whether the pre-owned bus has been in an accident. If yes, a buyer should check the vehicle’s condition and see if it matches the manufacturer’s specifications after repairing damages. To do so, one should check the papers related to a bus’s repair history.
5. Bus insurance
Vehicle insurance for third-party damages is mandatory as per the Motor Vehicles Act, 1988. A well-rounded commercial vehicle insurance plan for a new or used bus covers the cost of damage repairs. Without a valid insurance policy, one needs to bear the exorbitant costs of damages resulting in a financial burden. Further, owners might need to pay hefty traffic fines if they are caught driving without insurance. So, potential buyers must ensure their pre-owned bus is properly insured to reduce financial and legal liabilities. Ideally, it is practical to buy a pre-owned bus which already has a valid insurance plan. Such a bus insurance plan eliminates the hassle of purchasing a new plan as the current owner can simply transfer the insurance policy under his or her name.
Although investigating a used bus before purchasing is time-consuming, it is worth the time and effort as it helps in curtailing future costs. Potential buyers should not let a lower price fool them into a wrong decision. Therefore, following the aforementioned tips is necessary.