Paperwork When Buying a Used Car - Everything To Know!

Posted on: Feb 3, 2022 | | Written by:

Paperwork When Buying a Used Car - Everything To Know!

Published on February 03, 2022. EST READ TIME: 3 minutes

Are you in the process of buying a used car? Well then, congratulations! You are not only saving a lot of money, but also if you are new to driving, scratches or dents on your used car will not cause you heartache. Remember that the depreciation is less for a used car than a new car too. And buying second hand car insurance is way cheaper than insuring a new car. So, all that you need to do now is make sure that the paperwork for your used car is in perfect order. This will save a lot of future hassles. Read on to know more.

The role of registration certificate when you buy a used car

The registration certificate of a vehicle is the proof of ownership, which mentions the state and location where the vehicle is registered. It is a basic document related to your vehicle and when you buy a used car, you must first check that the registration certificate is in the name of the person selling the vehicle. When you purchase a used car, you need to get the RC updated with the details of the new owner before anything else can be done. Today, RC transfer can be done online.

Car insurance related information

You will need car insurance to be able to legally drive the vehicle on a public road in India. One important thing to know about second hand car insurance is that the original owner’s insurance protection only lasts a few days after the sale of the vehicle. Once the vehicle RC has been transferred, you will need to get car insurance in the new owner’s name. You will get the best deal when you buy car insurance online and the process is generally very simple.

Car’s service-related documentation

Not many people think about it, but it is very important to collect copies of all previous vehicle service records when you buy a used car. It will allow you to be sure that the vehicle you are buying has been properly maintained. Moreover, there is always the inherent risk that your vehicle may develop some problem in a part which is still under warranty. In such cases, the company will only honour the warranty if the vehicle has been serviced as per the manufacturer’s routine. If you have all the vehicle service records with you, you can present the same at the car service centre to claim your warranty.

Forms 32 and 35

If the used car seller didn’t have enough liquid cash to buy the car, they had probably taken a loan. And once the loan is paid off completely, they will get a No Objection Certificate from the financial institution. All such details are present in Forms 32 and 35, which need to be attached for RC transfer. In their absence, the hypothecation of the vehicle cannot be removed. In such a case, the entire process of used car sale will come to a grinding halt, since unless the loan provider issues a NOC, the car cannot be sold by the seller.

Road Tax Receipt

Governments charge road tax when you buy a vehicle and a lifetime road tax paid receipt is issued when the vehicle is registered. While it is not one of the four basic documents, namely your driving license, car registration, PUC certificate and second hand car insurance policy, that you must always have with you when you are driving, it is always a good idea to keep a scanned copy of road tax receipt on your email if available.

Original Car Purchase Invoice or Sales receipt

This is another document which you need to collect from the seller when you buy a second hand car. The need of original sales receipt will generally arise in case a warranty issue arises in your car where the manufacturer needs to fix a problem or a part in the vehicle. As with the road tax receipt, it is best to keep a scanned copy of the purchase invoice on your email. All in all, buying a used car can be a great deal, especially if you are able to thoroughly check the documents and ensure that the vehicle is in good condition.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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