The combined effect has, according to some estimates, pulled prices down 20-30 per cent.

For instance, a 5-year-old Maruti 800 can now be had for less than Rs 100,000, while earlier it would have cost around Rs 15,000-20,000 more. Prices of other small cars, too, have fallen.

So, if you are in the market for a second hand car, now is a good time to buy it. But make sure you are not stuck with a lemon. The following are four checks you should run to see to that.

1. Look

The overall look of a car tells you a lot about how it has been used. It is difficult to keep a car from minor scratches and dings given the state of traffic in cities and these do not cost much to fix.

So check out the interiors, the engine bay and the spare tyre compartment. If they are clean and well maintained, the owner is likely to have taken reasonably good care of the car.

But if a car looks battered and shabby, it has probably not been sufficiently cared for. Check for rust spots around the windshields and under the wheel arches.

Check the underbody too, ideally on a ramp. If there are rust spots, these could grow over time. If there are blisters in the paint or the coat is uneven, they are likely because of a shoddy repaint job, maybe after an accident.

Photograph: Noah Seelam/AFP/Getty Images

Image: Eleven-year-old labourer Chottu works at a car repair shop, in Hyderabad.