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Documents to Check When Buying a Used Car in India

A lot of thought goes into purchasing anything. You look for the best options available in a budget that suits your pocket. A few months ago, I was thinking of purchasing a car for myself. It had…

A lot of thought goes into purchasing anything. You look for the best options available in a budget that suits your pocket. A few months ago, I was thinking of purchasing a car for myself. It had become hectic to take the metro and rage over dismal last mile connectivity that one faces even in the metro cities like Delhi. So, I thought of buying a used car- a viable option for the time being.

I vetted an awful lot of websites and garages to narrow down my purchase. Trust me, it was the easy part. The trickiest part was to know about the documents to check when buying a used car in India. To spare you from the trouble, here is a list that you must check when buying a used car.

Registration Certificate (RC)

One of the most important documents that need to be checked is the RC. It contains information about the car and certifies that the vehicle is registered with the Indian government. The Motor Vehicles Act 1988 makes it mandatory to get a motor vehicle registered with the government of India.

Not having the RC of a used car that you are about to purchase means that the vehicle is illegally held by the current owner. You want to avoid taking over an illegally owned car.

Verify the engine number and chassis number on the RC. Also, ensure that the owner shows you the original RC and not the DRC (duplicate copy of RC). There could be something suspicious if the owner is trying to sell off the vehicle with a DRC.

Insurance

An insurance is a mirror to the car’s condition. In case there is any claim against the insurance, you must inquire about it. The extent of damage caused and the type of damages that are covered by the current car insurance should also be noted. In case the vehicle is not insured, it is not advisable to buy an uninsured car.

You can, however, use it as a leverage to push the owner to decrease the price of the vehicle. It is not something that you should compromise on and when you decide to finally purchase the vehicle, immediately get a third-party insurance to secure your vehicle from any unforeseen damages.

Form 32 and 35

What are these forms? Form 32 is an application form for the transfer of ownership of a vehicle purchased or acquired in public auction whereas form no. 35 is for termination of an agreement of hire/ purchase/ lease/ hypothecation.

In case the previous car owner has taken a loan to purchase the car, it is important to have these forms. It ensures that the loan dues have been cleared and the entire amount has been paid off. To stay clear of any hassle after having purchased the vehicle, make sure that you have access to these forms.

Service Book

Service history of any vehicle speaks a lot about what the vehicle has gone through. It helps us get a fair assessment of the vehicle and gives a first-hand warning of any issues that could crop in the future.

How frequently the car got serviced, what parts need more maintenance and the average cost of maintenance- all these questions are important. You can get a fair idea by merely going through a service book.

Car Purchase Invoice

There is little need to say that this is one of the crucial documents to check when buying a used car in India. When one makes a purchase, an invoice is issued which acts both as proof of sale and a proof of ownership.

To eliminate even a minute chance of any foul play when buying used car, have a glance at the car purchase invoice. If the owner shows you the soft copy of the same, insist on getting a print out to keep it with you. It can come in handy in case someone contests the ownership. It would also be helpful when you get the vehicle transferred to your name.

Road Tax Receipt

A one-time payment made by the previous owner of the car, road tax receipt is one that can fetch penalty if it has not been paid by the owner. You don’t want to take that penalty. Therefore, it is advised that you demand a road tax receipt from the owner of the car. The tax varies from state to state. Different types of vehicles have different road tax, and for cars, road tax ranges from anywhere between two to eighteen percent.

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