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Documents Required to Buy a New Car in India

Documents Required for Buying a Car in India

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Documents Required for Buying a Car in India
4.6 (92.31%) 13 votes

Automobile industry is one of the fast growing in the country. There’s a huge demand for buying cars, and it is imperative that there are questions regarding documentation, and the best practices while buying a new car. The documents required to buy a new car in India while booking the car are:

  • Proof of nationality
  • ID proof
  • Address proof

Voter ID, school certificates, and passport, work as proof of nationality. Driving licence, PAN Card, Passport, and Aadhaar card work as ID Proof. Electricity bill, house purchase agreement, rent agreement in case one is a tenant, and ration card work as proof of address.

Checklist while you are booking the car

Getting the important details in writing is important while following new car booking process. The down-payment made, on-road price, delivery date, price, add-ons, and accessories, receipts, temporary RC, PUC, warranty cards, owner’s manuals, details in case booking is cancelled or delayed are some of the must-have details in writing while booking a new car.

Vehicle registration formalities

Documents required to buy a new car in India have a second major part – the registration process. Vehicle registration must be done within 7 days of buying a new car. Some of the required documents are:

  • Form 20: among the indispensable documents required to buy a new car in India is the form 20, which is the application for the registration of the motor vehicle. it is also the document that, in duplicate, needs to be endorsed by the Registering Authority, and submitted to the financing bank, in case it is financed. Therefore, it is also the most important documents required to buy a car on finance.
  • Form 21: this is the sale certificate. The dealer or the car manufacturer will hand this over to you at the time of the purchase.
  • Form 22: the road-worthiness certificate is issued by the car manufacturer, and handed over to the customer when the dealer hands over the new car.
  • Attested copy of Valid Insurance Policy.
  • Identity and Address Proof of the owner, as while booking the car, are again required.
  • Challan receipt
  • Form 60 or 61 – PAN Card, whichever is applicable.
  • Chassis pencil print
  • Affidavit on a non-judicial stamp paper worth Rs. 3

The Insurance

Motor insurance is mandatory to drive a car on Indian roads. It is, thus, one of the mandatory documents required to buy a new car in India. While traditionally, insurance has been offered by the dealer only, with different coverage and offers while buying a new car. But competition has opened the insurance market and now one can apply individually as well by checking the policies online. There’s no rule to book insurance only via a dealer, but there’s a rule about having valid car insurance policy while registering a vehicle, and also while driving. Traffic police can issue a challan in case you are driving without a valid insurance policy.  It is renewed every year, but best offers are available for new cars only.

New Imported Car Booking Process

Indian governments have consistently supported the indigenous manufacture of the automobiles. Importing an automobile carries a 165% of the CIF value on luxurious cars and 116% of the CIF value on bikes. Documents required to buy a new car in India that is originally imported also requires an additional custom clearance, which has several laws and rules related to it, like following metric systems (km/hr), being right hand drive, not having been bought before, and the manufacturer not having any plant in India among others.

Conclusion

Buying an automobile, have its own complications due to the various rules and laws. There’s a process that needs to be followed to be sure that you are covered in case there are any mishappenings. One must be careful about the documents required to buy a new car in India. However, all the information is available online, and the dealers themselves are most helpful. What it means is that there’s a greater freedom in buying a new car, be it with regards to choosing the dealer, getting the right pricing, the right insurance plan, finance, etc.

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