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Documents to Check when Buying a Used Car

auto, autos, car, cars, documents to check when buying a used car

Used car market has been growing faster than the new car market for many years now. There are many reasons for it, ranging from affordability to not having to face any sort of waiting period. In fact, buying a used car always makes better financial sense. Certainly, going for a used car is not at all a bad idea. However, among the things to check before buying a used car in India are not just the condition of the car but even the paperwork. Today, in this post, we tell you about the car documents check you need to conduct while purchasing a second-hand car.

Why is it important to Check documents when Buying a Used Car?

It’s only after a lot of research and searching the on finally finds a used car worth buying. Once you have found the car that you find worth buying, an important task is to do a car documents check. Through a proper paperwork and correct documentation, you can legally get the car transferred to your name.

While this process might look tough, it’s unavoidable as it’s easily among the most important task when you buy a pre-owned car. To help you easily take care of all the documentation, we have come up with a step by step guide. Here, we will inform you about the used car documents list you should prepare to ensure correct documentation.

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What all Documents to Check when Buying a Used Car?

  • Registration Certificate (RC)

Of course, among the most important car documents check you need to do is to have a good look at the registration certificate. The information on the RC, such as the chassis number and the engine number, should match the information on the plate you can find in the engine bay. In case you find any discrepancy, simply walk away. Also keep an eye on details such as the number of owners and the date of registration.

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  • Invoice of Car Purchase

The invoice is provided to the original buyer of the car by the dealership the car is bought from. This invoice provides important information such as the date of purchase and the ex-showroom price at which the vehicle has been bought.

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  • Insurance Documents

All vehicles are mandated by the law to have a valid insurance policy. Another reason to ask the seller for the insurance policy is that through it, you can find out about all the claims that have been made by the seller. This also tells you if the car was involved in a major accident. In case the new owner was to continue using the existing insurance policy, he will have to get the policy transferred into his name. Also, you should check if the insurance policy is expiring soon ass renewing it would incur extra cost. The buyer should also check the inclusions and the exclusions in the policy. It’s important to conduct a proper check before paying for the vehicle.

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  • Service Records book

The service record book is also known as the blue book. It shows all the services the owner has availed at the authorised dealership. It also shows you if the car has been serviced at regular intervals. Finally, it also gives you a good idea if the odometre reading that the car is showing is correct or not.

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  • RTO Forms: 28,29 and 30 32, and 35 

These four forms are the most important forms for the ownership transfer.

  1. Form 28: It’s compulsory to have a signed copy of this form for the ownership transfer. It’s also called the No Objection Certificate. It issued by seller RTO.
  2. Form 29: This is the official car ownership transfer notice.
  3. Form 30: This the official intimation application for the ownership transfer.
  4. Form 32 and 35: This is required when there’s a pending loan on the car.

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  • No Objection Certificate(NOC)/Clearance Certificate

Most cars are bought on bank loans these days. However, most car sellers often settle the loan before selling the vehicle. In such a case, the bank issues a no objection certificate of a clearance certificate stating that there’s no pending loan on the vehicle. In case you see that the car you’re buying is hypothecated to a bank (mentioned on RC), you need to ask for this NOC.

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  • Road Tax Receipt

This receipt is provided by the RTO when the car is registered by its original owner for the first time. Ensure you check this receipt as it’s a clear proof of the road tax having been paid.

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  • Certification for bi-fuel kits

In case the used car you’re buying runs on two fuels (example – Petrol and CNG), one of the car documents check is the certificate for bi-fuel kits. The seller should even provide a NOC from the RTO endorsing the aftermarket CNG or LPG kit has been fitted.

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  • Emission Certificate

Also known as the PUC or Pollution Under Control certificate, this is an official document stating that the emissions by a car are under the legal limit. It’s also a proof of the fact that the car’s engine as well as exhaust system are in good condition.

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  • Owner’s Manual

Ensure you also get the owner’s manual from the seller. This has important information about the vehicle like the servicing schedule, details of the features it has, location of the fuse box and simple maintenance tips.

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FAQs

Does retro fitting a CNG kit on a car require a new Registration Certificate?

Yes, retro fitting a CNG kit on a car requires official endorsement by the RTO in the form of a new Registration Certificate mentioning the bi-fuel status.

When is an NOC required?

An NOC is required in two cases – 1) By the seller RTO in case the ownership transfer is interstate 2) By the bank if the vehicle was purchased on bank loan but it was settled before selling.

How do I know if the car has been properly cared for?

The service book of the car gives a clear record of all the maintenance work carried out at the authorised dealership.

Can insurance also be transferred?

Yes, the existing car insurance can be transferred in your name.

Should I buy a used car without an invoice?

We would like you to always ask for an invoice as it’s a proof that the seller is the original owner of the vehicle. It also shows the exact price the owner paid to the dealership. The following details can be found on the invoice-VIN No.Production DateEngine No.Details of the financierDetails of the dealership
Details of extra accessories, if any

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