Documents Required for Buying a Used Car

What Documents are Needed for Buying a Second-Hand Car?

1. Registration Certificate (RC) - The RC will have important information about the vehicle such as its engine number and chassis number. The buyer has to check the state in which the vehicle was initially registered. If the buyer will be moving it to another state, the registration will have to be done there. The buyer should ensure that the document is not the duplicate copy of the RC (marked by the acronym DRC); in case it is, he/she should check the reason with the seller.
2. Invoice of Car Purchase - The buyer should be given an invoice for the purchase of the vehicle. Although this will be made available when the used car is bought from a company or dealership, an individual seller may not be able to provide it. In such a scenario, the seller should provide a receipt to the buyer that will serve the purpose.
3. Car Insurance  - If the buyer intends to get the existing insurance policy transferred to his/her name, the process should be initiated well before the sale. While the insurance is being transferred, the buyer should check whether the premium was paid regularly, the claim history of the seller, and the expiry date of the policy. The buyer should also have a clear idea about the terms and conditions in the policy documentation, particularly the exclusions.
4. Service Book - This will give details on the servicing history of the car. The buyer will have a better idea of the condition of the vehicle through this. If the car has been serviced as per the schedule then it is more likely to be in better condition that a car that had infrequent services.
5. Forms 28, 29, 30, 32, and 35 - Forms 29 and 30 are mandatory documents required for buying a used car in India. The second-hand car registration procedure requires the seller to sign two copies of Form 29 and a copy of Form 30 and hand it out to the buyer. The buyer will then submit the same at the RTO for transfer of ownership.In case the car was bought through a loan, the buyer will have to get the No Objection Certificate from the financing bank through the seller. This document will clarify that the complete loan has been paid by the seller. If this is not procured, the buyer may be held responsible for repaying the loan after the transfer of ownership.
6. Receipt for Road Tax - Road tax is paid only once, i.e., at the time of registration of the car by the first owner. If the road tax is not paid on time, it can accumulate a huge penalty over a period of years. There could even be a situation in which the new owner is liable to pay the same. The road tax varies between states and is usually between 2% and 18%. It is the responsibility of the seller to provide a road tax receipt to the buyer.
7. Certification for bi-fuel kits - If the car being sold has been configured to run on two types of fuel, the seller should ideally provide the bi-fuel certification to the buyer. A No Objection Certificate is also required from the RTO, indicating the same. The bi-fuel kit usually has a guarantee of 5 years from time it was fitted to the vehicle. So the buyer should ask for the sale receipt of the kit too.
8. PUC Certificate - It is important to procure the Pollution Under Control (PUC) certificate from the seller, as this certification is mandated by the law.
9. Owner's Manual - Do not forget to get the owner's manual from the seller, as this has important information about the vehicle. The servicing schedule is usually mentioned in the car owner's manual, and this should be followed if applicable.