Documents to Check when Buying a Used Car in India

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Used Car Market and Its Growth

There has been a rise in the used car or second-hand car market when compared to the new car market, especially in India. People are now more interested in buying a used car over a new one for a plethora of reasons, ranging from affordability to not having to face a waiting period for delivery. Purchasing a pre-owned car makes better financial sense these days.

However, there are many things to consider and keep in mind while purchasing a used car or vehicle. The process of buying, or selling a used vehicle for that matter, largely depends on not just the condition of the car, but also the paperwork.

Things to check before buying used cars

• Accountability: Trust is a major factor when it comes to purchasing a car, especially when buying a used car. Buying a car from a trustworthy source is always a better idea.
Warranty: Most of the pre-owned car dealers provide warranty which can be beneficial to the customers. It may not be a full warranty but differs from dealership to dealership.
• Paperwork is easy: If you opt to buy a car from a dealership, you will not have to break your head over the paperwork and documentation. RC transfer is a process not many are fully aware of. You only have to sign the papers and drive away the car if you are buying from a dealership.
• Variety and Reliability: If you buy a car from a pre-owned car showroom, you will be able to choose from a variety of cars. If you opt to buy from a direct owner, the only option you have is the car that the person owns.

What to keep in mind before buying used cars?

• Understand the car you want to buy.

Research and understand the car you are looking to purchase. Learn everything about the car and its make – everything, from the distance it has covered, mileage, any wear and tear, insurance coverage, any past accidents, any repairs made, and so on.

• Check for any faults and make sure to find none!

Check the condition of the car inside out. Take a test drive of the car to see if there are any unwanted sounds or noises from the inside of the vehicle.

• Verify the papers of the car/vehicle thoroughly.

Verifying the documents like checking the warranty report, RC book details, insurance details, and perhaps the history of the car are all important steps to consider while purchasing a used car.

Importance of Documentation while Buying Used Cars

You will be able to buy the perfect car for your needs only after a lot of research and analysis. Not all cars are a perfect fit for your requirements. Especially when you are looking to buy a used car, it is doubly important to check the nuances of the car and its documents.

Once you have found the car of your choice in the used cars market, it is mandatory to transfer RC in your name from the seller’s name. Your task at hand will be made easy if you have a better understanding of all the documents you need to check while purchasing a second-hand car or vehicle.

Documents to Check When Buying a Pre-Owned Car

• Registration Certificate

Among the most important car documents is the RC or the registration certificate. The details on the RC, such as the chassis number and the engine number, should match the information on the plate found in the engine bay.

• Invoice of Purchase of Car

The invoice or the bill is provided to the buyer when buying a car from a dealership. This invoice gives a piece of important information such as the date of purchase and the ex-showroom price at which the vehicle has been purchased.

• Insurance Documents

All motor vehicles are mandated by Indian law to have an updated insurance policy. This is important to get knowledge about all the insurance claims that have been made by the previous owner(s). This document tells you if the car was involved in a major accident or not. You must check the expiry date of the insurance policy as the renewal process would incur extra costs. The buyer must also inspect the inclusions and the exclusions in the insurance policy.

• Service Records book
The service record is also known as the blue book. It displays all the services the owner has availed at authorized dealerships. It also provides information about the different service intervals. Lastly, it also gives you an idea of the odometer reading regarding the kilometers that the car has run.
• RTO Forms: 28,29 and 30 32, and 35
These 4 forms are the most crucial forms for the ownership transfer.
• Form 28:

It’s mandatory to have a signed copy of this form for the ownership transfer. It’s called the No Objection Certificate (NOC). It is issued by the seller’s regional RTO.

• Form 29:

The official car ownership transfer notice.

• Form 32 and 35:

This is required when there’s a pending loan on the car.

• No Objection Certificate (NOC)/Clearance Certificate

Most sellers settle any loan on the vehicle before deciding to sell it. The bank issues a no-objection certificate with a clearance certificate affirming that there is no pending loan amount on the vehicle to be paid.You need to ask for the NOC from the owner of the vehicle in case you see that the used car or vehicle is hypothecated to a bank.

• Road Tax Receipt

The RTO provides the road tax receipt. While buying a pre-owned vehicle, it is important to ensure checking this receipt as it’s the only proof of the road tax having been paid.

• Certification for bi-fuel kits

In case the pre-owned car that you’re purchasing runs on two fuels (for example – Petrol and CNG), then make sure to check the certificate for bi-fuel kits. The seller must provide an NOC from the RTO endorsing the aftermarket fitting of the CNG or LPG kit.

• Emission Certificate

The PUC or Pollution Under Control certificate is an official document stating that the emissions of the car are under the legal limit. It’s also proof that the car’s engine as well as exhaust system are maintained well and in good condition.

Summary

Buying a pre-owned car is a smarter choice today when compared to buying a brand-new car. There are various reasons behind it including being economical and of course depreciation of the car! Everyone knows that a car is a depreciating asset and it is only sensible to buy a pre-owned car if you are someone who likes to experiment with different cars over different periods.

There are several brands and models of cars that have grabbed the attention of many car users. However, the best choice is a small and comfortable hatchback if you are a learner. Some of the key criteria for purchasing a pre-owned car would be the cost, of course, and that it is sturdy, safe, easily maneuverable, and in good condition. There can be numerous secondary criteria like colour, design, looks, and so on, which will differ from person to person.