Which documents should be checked before buying a second hand car

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1. Registration Certificate
• The Registration Certificate to check information about the car like Chassis number or Vehicle Identification Number, Registration number, Engine number, owner name etc.,
• Any changes like the engine or color has to be updated on the RC as well.
• If cars are fitted with CNG sets, double check if CNG is mentioned on RC and Insurance papers.
• When you’re purchasing a used car, don’t forget to ask how many owners it has had. You can check this very easily on RC Smart Cards as in the below image. When getting the car transferred, you will have to make the ownership changes on the RC under your name. On the smart card, you will have to get the Owner Serial Number updated to No. 02, indicating that you are the second owner of the vehicle.
• Check the state in which the car has been registered. If you are planning to use it in another state, you will have to get it registered there only.
2. Car Insurance Papers :
• You can get the insurance transferred from the current owner to your name.
• You can check with the insurance company about the previous claim history.
• This can help you to know if the car was involved in any accident.
• Check if the insurance is a Third party only insurance or a Comprehensive one. If it is TPI only, it is better you buy a new Package policy. You can also buy a totally fresh policy in your own name .
• In case if you already have car insurance, you can transfer that from your old car to the new car.
3. Original Purchase Invoice:
• Get the car’s ‘Original Purchase Invoice’ from the Pre-owned cars dealer or from the auto company. If you are purchasing the car from an individual owner, you can ask for an ‘Original Sale receipt’ which is duly signed by him/her.
4. Road Tax Receipt:
• The owner of the car should have paid the Road tax when registering the vehicle. This is a onetime payment. So, you just need to ensure that the seller provides you the Road tax paid receipt (original one).
5. Car service book:
• The service book generally will have the details about ‘service schedule ‘and can give you a fair idea about the condition of the vehicle.
6. Original sale receipt of the installation oftwo types of fuels:
• If the car has been modified to run on two types of fuels (like LPG & petrol), ask for the original sale receipt of the installation. Ideally the car should have the ‘dual-fuel certification’ and NOC (No Objection certificate) from the RTO (Regional Transport Office).
7. NOC from the finance company :
• If the previous owner has taken a loan to purchase the car, ask him/her a copy of the NOC from the finance company, stating that the loan has been cleared. You should also ask for a copy of Form 35 which is duly signed by the financier & the previous owner.

Advocate Reena Rao LawRato