What Are The Documents Involved When Buying A Used Car

In India, the used car market has seen substantial growth over time. Today, people can buy used cars through online platforms which makes it much more convenient for them (buyers) and the sellers as well to finalise the deal. However, the transfer paperwork that is involved in the process of buying a used car is a bit complicated. There are a lot of formalities involved in the process and a buyer must know them all to avoid any legal harassment is the future. The vehicle transfer form, insurance papers, RC(Registration Certificate) papers, and other legal bills and documents of the car must be checked and cross-verified by the buyer.

Let us have a look at all the documents that are involved when buying a used car:

Registration Certificate (RC)- The Registration Certificate(RC) is a legal document that contains all the information of the car like its VIN(Vehicle Identification Number) number, chassis number, engine number, the manufacturing date of the car, etc. The details of the owner are also mentioned in the certificate. The buyer needs to change the car ownership details on the RC and get the same under his name. Also, he must verify if the RC is original or not. If not, it will be marked under the acronym DRC and the buyer must confront the seller with that.

Insurance Papers- The buyer needs to undertake the insurance papers from the seller and transfer the insurance under his name. If the insurance is expired, the buyer must immediately renew it. If it is a third-party insurance only policy (which is the least mandatory cover under the law) and the buyer wants to have the comprehensive plan, he can get comprehensive insurance after the formalities of vehicle transfer form are completed.

Original invoice of the car- The original invoice of the car must be handed over to the buyer at the time of sale.

Road Tax Receipts- The road tax is a one-time payment that is made by the owner of the car. Therefore, the buyer of the second-hand car must take this receipt from the seller to avoid paying any penalties in future.

RTO verification documents – There are few legal forms that must be submitted to the RTO to complete the procedure. They are:

  • Form 28- It is a kind of NOC(No Objection Certificate) which is needed in case the seller is from another state.
  • Form 29- It is a vehicle transfer form that duly mentions the details of the car ownership transfer.
  • Form 30- It is an application to the RTO for the transfer of ownership of the car. It is also a type of vehicle transfer form.
  • Forms 30 & 32 – These forms are required in case the owner is a loan bearer and has taken a loan for the purchase of the car. The seller needs to ask his bank to provide a NOC which has to be handed over to the buyer. It clarifies that the loan has been settled by the seller.

Service Book of the car- The buyer will get all the servicing details of the car in this book and must demand it from the seller at the time of purchase.

Pollution Papers(PUC)- The PUC(Pollution Under Control) certificate must be undertaken from the seller as it is mandated by law to possess this certificate. A failure to do so may lead the buyer to pay a penalty.

Certificate of Bi-fuel kits- If the second-hand car has LPG or CNG cylinders installed in it, the buyer must ask for the RTO certificate, a NOC and the sale receipt of the same.

Having knowledge of all the documents and formalities that are involved in the purchase of a second-hand car is very important for a buyer. It is necessary to acquire a proper vehicle transfer form and other certificates to legally finalise the deal.