ARTICLE: How to buy a *USED* Car in India

[Garfield]

Can some one assist me in what is required of me as a potential buyer to buy a second hand car. I have read through this post and it does point out quite a few important things?

I am more concerned about the forms that are to be filled up to ensure that the car gets registered under my name. What about the life time road tax? is that issued in the name of the car or of the person who bought it initially? Kindly Advice.

[esteem_lover]

Originally Posted by drunk.monkey

damn! i wish i had read this before i bought my city...
it was done up... body kits, air filter, race headers... after buying it i've faced so many problems wit the car its not even funny!!

It is always better to avoid cars that are done up. You might get acrried away by the accessories , modifications etc & end up with a lemon. Mostly the fully loaded, fully modded cars are sold in the open market because neither the owner nor his friends have any use for it, it has gone through everything that it has to be dumped. Better to get a car thats original & has a service record to back that.

Originally Posted by Garfield

I am more concerned about the forms that are to be filled up to ensure that the car gets registered under my name. What about the life time road tax? is that issued in the name of the car or of the person who bought it initially? Kindly Advice.

LT Tax is for the car. You need to get the T.O forms, insurance transfer & the delivery note along with the receipt. that is all there is to paper work, rest all is about the car. please make a search, there are very useful threads on this.

[jaison1380]

Hi Adya,

Is there something like a Used Car Pre-delivery/ delivery checklist? Pls. guide to relevant threads if any or if you have a list i could use.

I have booked a pre-owned ikon and would be taking delivery shortly.

Thanks,
Jaison

[GTO]

Is there something like a Used Car Pre-delivery/ delivery checklist? Pls. guide to relevant threads if any or if you have a list i could use.

Hi Jaison. Even though this list is for new cars, most things would be applicable for a used buy also. Linky to the Article.

[MADMAX111]

Note - Threads merged

Please advise me on the documents to be obtained from the buyer in case of sale of a car to avoid complications , If the car was later involved in some unlawful activity. Also to ensure that the title of owner has changed satisfactorily. Also let me know of the role of NOC in case selling an outside state registered car.

PS: Mods pl excuse if a similar thread exists. I searched on the forum but no joy. Pl point me to correct thread then. Thanks!

[esteem_lover]

1. Registration Certificate (Original), do not accept photo copies or duplicates.
2. Insurance, should be comprehensive & depending on the age of the car, enough NCB should be visible.
3. LTT paid challan (Not that important, but still)
4. T.O (Transfer of ownership) forms
5. Insurance transfer forms
6. PUC (Pollution under control) certificate (If available)
7. Service Records

NOC
If you are buying a car that is regd in another state, avoid it, but if you can't, then ask the previous owner to get a NOC from his RTO. Make that one of your conditions when you take the vehicle.

[deepblue]

what is the disadvantage of third party insurance. One of my friend is buying a second hand Ascent ( GLE ) model, June 2006 model. Owner ( a business man) says it has done only 12,000 km. But it has a third party insurance. The expected price is around INR 4 lakh. what is the take of all learned ones here

[Zappo]

Originally Posted by deepblue

what is the disadvantage of third party insurance. One of my friend is buying a second hand Ascent ( GLE ) model, June 2006 model. Owner ( a business man) says it has done only 12,000 km. But it has a third party insurance. The expected price is around INR 4 lakh. what is the take of all learned ones here

A 3rd party insurance is a bare-bones insurance policy that is mandated under law. While various other flavors of the policy cover is the owner's prerogative the 3rd party he must get. This is the policy that covers any person (3rd party) who gets injured by your vehicle. So if you cause an accident and the person sues you your 3rd policy is there to cover the costs.

Coming back to the Accent in question, what it means is that the businessman in question has spent the minimal amount on the car's insurance. Most possibly because he knew that he was going to sell the car soon and hence decided not to spend on the insurance beyond what was mandated under law.

For your friend this translates into some not so happy news. If the car suffers an accident or is lost in some natural disaster or gets stolen etc. he will have to pay for it from his own pocket. Remember, insurance is costly and any upgrade will mean that much additional will have to be paid from his pocket.

Also, why is the owner selling off a car that is barely a year old? On top of that the insurance is not comprehensive. I think it will be wise if you could ask for his 1st year's insurance policy. Check whether he has changed his insurer as well. If so it could mean trouble. Find out from the previous insurance company whether there was any claim/claims in the 1st year. The amount of claim if any will give you a good idea on whether the car got into some serious accident and then repaired back into shape.

[esteem_lover]

Originally Posted by Zappo

Coming back to the Accent in question, what it means is that the businessman in question has spent the minimal amount on the car's insurance. Most possibly because he knew that he was going to sell the car soon and hence decided not to spend on the insurance beyond what was mandated under law.

If the car is less than a year old, it cannot have a 3rd party insurance unless the 1st owner has had an accident & made a huge claim on it & does not want to reveal that. Please check the first year's insurance, as suggested by Zappo.

[jash]

I searched around the forum for steps/formalities to be completed while selling a car but could not find one. Also I don't have permission to create a new thread and that's why I am posting it in this thread. Mod's either create a new thread for this request or point me to the right thread and delete this post.

In my case I enquired three dealers (2 Honda & 1 Ford) on exhange of my OHC 2003 & looks like each one of them have tie up with some used car dealers and they are going to provide valuation. More than the pricing aspect I am not educated about the formalities to be completed while selling a car to avoid any hassles at later point. Are there any legal or proper forms need to be siged by the parties..?

Based on my reading on this forum, I understand following needs to be done,

1. Get the sign on a delivery receipt (is there any particular format or is it upto the individuals to decide the content)
2. Inform the local RTO office about the deal (any particular form?)
3. Transfer the RC to the new party
4 Inform the insurance company about the sale & also ask for the refund of premium amount for the remaining period
5. Ask for NCB certificate, if I am going with different insurance company

Anything else to be taken care ?

[pabheda]

yes r.t.o has special format of delivery note u can get that from RTO or ask the dealer whom u r selling the car, there is a format of receipt too then u will have to give 2 documents form 29 and form 30 which will enable him to transfer the car on this name ask the person to take insurance on the post so u can get ncb transfered on new car

normally all the process is done by the dealer only but u have to keep check if he is doing it or not

[jash]

Thanks pritesh, just wanted to know if in case I don't end up selling through the dealer. Got a better deal directly from a used car agent than the Honda dealer (3.6 vs 4.15)

[GTO]

Just added a point to Adya's article which I feel is crucial, but often missed by some. Please ensure that this is done when you buy your used car:

• Insurance: Very important. Please have the insurance transferred to your name upon delivery. Many forget to transfer the insurance coverage (along with the RC book entry) and face a problem if and when an accident / theft takes place.

[shuvd]

Don't know if this has been discussed before. Just how reliable are the authorized dealers wrt used cars? Truevalue (MUL), Auto terrace (Honda), etc. Guess they charge a bit more than regular dealers, but it worth paying extra?

[mithun]

Originally Posted by shuvd

Don't know if this has been discussed before. Just how reliable are the authorized dealers wrt used cars? Truevalue (MUL), Auto terrace (Honda), etc. Guess they charge a bit more than regular dealers, but it worth paying extra?

See this for MARUTI :

http://www.team-bhp.com/forum/indian...e-dealers.html (Can we trust Maruti True Value Dealers ?)