Buying a used car? Check the documents
To avoid any problems or penalties, make sure you get the requisite papers from the owner
Times Of India
The pre-owned car market is brimming with choices. Unfortunately, this semi-organised market is also teeming with unscrupulous sellers. So, if you don't want to be taken for a ride, check the vehicle's paperwork thoroughly. Besides, make sure that the seller informs the regional transport office (RTO) where the car was registered about the sale within 14 days of buying the vehicle. Here's a list of documents that you should demand from the seller before finalising the deal.
Pre-owned car dealer: Buying from a dealer is less cumbersome as he takes care of the transfer of insurance and RC in the name of the new owner. However, verify that you are purchasing directly from the car owner and that the vehicle has not been transferred in the name of the dealer. "If the car is in the name of the dealer, who has bought it from the original owner, purchasing it will make you the third owner. This will reduce the resale value of the car," advises Povaiah.
You must also enquire if the dealer provides a warranty for the car. While some don't, there are a few who offer a warranty of six months to one year
Car company: Almost all auto companies have their own pre-owned car outlets. Maruti Suzuki has True Value, Mahindra & Mahindra has First Choice, while Hyundai has First Advantage. Even four-wheelers in the luxury space have a share in the burgeoning used car market in the country. Mercedes has ProvenExclusivity while BMW owns Premium Selection.
Insurance immediately: With car insurance companies clamouring to woo customers, this should not be much of an issue unless the car is more than 15 years old," says Roshun Povaiah, deputy managing editor of Cartoq.com, a car advisory website.
Form 32 & 35: You will need these documents if the previous owner had taken a loan to purchase the car. Before buying, ask the seller to give you a copy of the no-objection certificate from the finance company, which will clarify that the entire loan has been paid off. If you don't take care of this detail, you could land in a soup. For, after you take possession of the car and the registration certificate is transferred in your name, the lender may ask you as the new owner to pay the pending loan.
Service book: You should go through the service history of the vehicle, since it will reveal to you the condition of the car. A vehicle that has been serviced on time and through authorised centres will be in a better running condition than one that has been serviced infrequently
Road tax receipt: This tax is a one-time payment, which should ideally be paid by the first owner of the car when he registers the vehicle. If it hasn't been paid, the penalty can run into lakhs of rupees over time, and you, as the new owner, will have to bear this financial burden. The tax varies among states and ranges from 2-18 %, so you should ensure that the seller provides you a receipt for the tax paid.
Car purchase invoice: A dealer or a company will provide you a printed bill along with the car. However, this may not be possible if you are purchasing the car from an individual. "In such a case, you can demand a sale receipt from the seller," says Povaiah.
Dual fuel certification for retro fitment: If the car has been modified to run on two types of fuels, ask the seller for the dual fuel certification, as well as an NOC from the RTO, which certifies that the vehicle can run on both fuels. The retro fitment is a replaceable piece in the vehicle and has a guarantee of five years from the time it is installed, so you must ask the seller for its sale receipt too.
Who is a better seller?
Individual: Though looking for an individual buyer is time-consuming and cumbersome, it can help you get the best deal since no middleman is involved. Povaiah says, "It is laborious, but you can get the car at a lesser price. You will also be sure that what you see is what you get, with hardly any tinkering done to the vehicle." However, a good idea will be to take a trusted mechanic along with you while checking the car. He will be able to ensure that you are not sold a lemon.