When it comes to car, people want the best. If you want a new branded car then it should be a planned investment. The feeling of owning a car is awesome and it does not matter if it is new or a used car. People in India are crazy for cars. The demand for used car is increasing day by day in the Indian market as the price generally fits the budget of many. It’s easy to find used cars in Mumbai by owners as well as at dealerships. Middle-class people are following the trend and upgrading their two wheelers to four wheelers – it may be a small car, sedan or an SUV. Easy availability of finance is one of the reasons.
The demand for used car in India is increasing by an average of 16% as per the study. Buying a used car will make you feel at ease when all the papers are handy and can be produced when asked. There are certain documents that need to be transferred to your name on purchase of the vehicle.
The documents that should be checked on purchase of a used car are listed below:
- Registration Certificate
- The Registration Certificate is one of the most important documents, which provide details of the Car Chassis number, Vehicle Identification Number, Engine number, Owner’s name etc.
- These days smart card has taken place of RC book which also give informations regarding registration number, owner detail, color etc.
- Valid Insurance Policy
- It is mandatory to have an automobile Insurance as per the law.
- On purchase of used car, always transfer the insurance to your name so that it will be easy to claim in case of any accident.
- Always check the expiry date of the policy and make sure if the premium has been paid regularly or not.
- Road Tax Receipt
- Always cross verify if the road tax has been paid by the first owner or not to avoid penalties.
- Car Purchase Invoice
- Get the original sale receipt along with the signature of the owner. This is also a proof that full payment is done on purchase of the vehicle.
- Service Book
- To be on the safer side, always go through the service book where you can check out how the car is maintained and get a good idea about the condition of the vehicle.
- Form 32 & 35
- If the car was bought under loan, ask the seller for a NOC stating that the loan has been cleared.
- If the car is on loan while purchasing, then transfer the loan under your name and pay directly to the bank or continue paying EMIs.