The used car market has been expanding at a rapid pace, outpacing the new car market in recent times. From the appeal of affordability to skipping the tiresome waiting periods, the benefits are many. In many ways, buying a second-hand car offers better financial logic.
However, when we talk about things to check before buying a second-hand car, it’s not just the engine or the bodywork. The paperwork is equally crucial. So, what’s on the car document list you should be aware of when dipping your toes into the world of used cars? Let’s delve in.
Why Check Documents When Buying A Used Car?
After diligent research, once you’ve landed upon a worthy used car, there’s the significant matter of car documents check. This isn’t just about legal formalities; it’s about seamlessly transferring the vehicle’s ownership to your name.
Also Read: 10 Things To Know About Used Car Warranties
While the process might seem daunting, it’s a necessary step in ensuring your new purchase doesn’t lead to legal tangles later on. Wondering what to bring when buying a used car? Let’s break it down step by step.
Essential Documents To Verify When Purchasing A Used Car:
1. Registration Certificate (RC)
Undoubtedly, the RC tops the list. It’s imperative to verify details like the chassis number and engine number. Check if these match with what’s under the car’s hood. If there’s any mismatch or if details like the number of previous owners and date of registration don’t add up, it’s a red flag. For further insights on this, consider reading about the Duplicate RC Book.
2. Invoice of Car Purchase
This document traces back to the original buyer and the dealership. It highlights key details like the date of purchase and the initial price of the car.
3. Insurance Documents
Every vehicle must have valid insurance. It’s not just a legal requirement but also a way to gauge if the car has had any major mishaps. If you’re continuing with the existing insurance, remember to transfer it to your name. Also, keenly inspect any exclusions in the policy.
4. Service Records Book
Also known as the blue book, this is a tell-tale sign of how well the car was maintained. Regular services usually point towards a well-cared-for vehicle.
5. RTO Forms: 28, 29, 30, 32, and 35
These are the lifelines for any ownership transfer, especially when navigating the waters of buying a second-hand car.
6. No Objection Certificate(NOC)/Clearance Certificate
If the car was initially purchased on loan, the bank would issue a NOC once it’s fully repaid. This is an essential document to ensure you aren’t unknowingly taking on someone else’s debt.
7. Road Tax Receipt
This is a one-time payment made by the first owner, and you need proof of its payment.
8. Certification for Bi-fuel Kits
For cars running on multiple fuels, the seller should have this certificate, endorsed by the RTO, which also gives a NOC for any aftermarket fitting of additional fuel kits.
9. Emission Certificate
A must-have, this PUC certificate proves that the car’s emissions are under legal limits, hinting at a healthy engine and exhaust system.
10. Owner’s Manual
Often overlooked, this booklet holds essential information, from servicing schedules to understanding the car’s features.
The allure of the used car market is undeniable. With challenges like chip shortages and other supply-chain issues hitting new car manufacturers, the second-hand car market offers an attractive alternative. But remember, the decision to buy a used car isn’t merely about the vehicle’s physical condition. It’s also about the paperwork. Sure, assessing the car’s health is crucial, but this list of documents is equally vital.
But for now, remember – paperwork matters. Whether it’s the crucial Registration Certificate(RC), the informative Service Records Book, or the binding Forms 28,29, and 30, each plays a pivotal role. And if you’re pondering what to bring when buying a used car, the Invoice of Car Purchase can’t be overlooked. It’s not just a proof of ownership but a testament to the car’s legacy. Also, keep yourself updated with the New Regulations for Second-hand Cars to ensure a smooth buying process.
FAQs
Q. Does retro fitting a CNG kit on a car require a new Registration Certificate?
Yes, it mandates an official nod from the RTO in the form of an updated Registration Certificate stating its bi-fuel status.
Q. When is an NOC necessary?
An NOC is required in two scenarios – 1) for interstate ownership transfers by the seller’s RTO and 2) by the bank if the vehicle was bought on loan and settled before selling.
Q. How is the vehicle’s resale value determined?
Multiple factors come into play – the car’s age, its condition, total mileage, demand in the market, and accident history. However, having all the necessary paperwork and regular maintenance history can significantly improve resale value.
Remember, a car’s papers narrate its history. Dive deep, ask questions, and keep this checklist handy!
Disclaimer: This list may vary slightly based on jurisdiction and the specific requirements of the country or state you are in. Always consult local regulatory authorities or experts in the domain before making any decisions.
