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Old 7th August 2010, 21:18   #1
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Default Looking a used Lorry for friend - What are the important factors?

A friend of mine is looking to purchase an used lorry & had been advised to visit Namakkal for finding one. He relied on me for few suggestions, since I'm newbie in this, requesting some experts to help me.

The purpose for purchase is for delivering commercial LPG cylinders from company's to dealer godown. I'm aware of the FC every year after first 3 years of purchase, but if the lorry is purchased from Namakkal & bought to Chennai, do we have an option to get FC in Chennai or take it to Namakkal every time? I hope only transfer of ownership is sufficient to get the lorry FC'd in Chennai. Pls correct if my understanding is not right here.

If the vehicle is hypothicated, is it the same process of transferring when buying a used car?

What're the crucial factors to look for when buying a used lorry? Details on non technical aspects is most welcome.

Any help is highly appreciated. Thanks.

Last edited by aargee : 7th August 2010 at 21:33. Reason: Making more appropriate title
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Old 7th August 2010, 21:33   #2
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Quote:
Originally Posted by aargee View Post
The purpose for purchase is for delivering commercial LPG cylinders from company's to dealer godown.
I guess there would be a "vehicle should be less than X years old" requirement imposed by the company for this kind of hazardous purposes.

Quote:
do we have an option to get FC in Chennai or take it to Namakkal every time? I hope only transfer of ownership is sufficient to get the lorry FC'd in Chennai.
The ownership will be transferred to Chennai; so you can get it done there.

Quote:
If the vehicle is hypothicated, is it the same process of transferring when buying a used car?
Yes.

Additionally, you will have to look into the permit issue. The vehicle will require a permit. While it will not be difficult to procure a permit, you will need to file in paper loads of applications and squeeze out plenty of grease.

Quote:
What're the crucial factors to look for when buying a used lorry? Details on non technical aspects is most welcome.
1. Employees - have the former owner properly discharged the employees?
2. Permit - what permit does the vehicle currently have.
3. Non tax levies - in Kerala, we have the "Motor Transport Workers' Welfare Fund" - the vehicle cannot be transferred unless dues to the fund are cleared. Look out for such State specific levies in TN.
4. Accident involvement - sometimes, in case the vehicle was involved in accidents while being driven by an unlicensed driver, there may be attachments from court on the vehicle. For goods vehicles, there may also be liabilities for goods damaged in transist. This is rarely covered by vehicle insurance. So, be on look out for such liabilities with extra wide eyes.

Tech ones -

Body - LPG carriers require special frames, and exhaust has to be routed through front of the front tyres. Consider expenses for the modifications into OTR price.
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Old 9th August 2010, 07:18   #3
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Thanks BackSeatDriver for all the points & one of the important point being the hazardous. What I couldn't understand is the permit thing. I can understand the route permit stuff on the private buses in KL, are you saying a similar permit for this one too? Or, is it the permit for carrying such & such goods? Like the existing permit on lorry could be is to carry general goods, but the purpose now is to carry commercial cylinders. So the permit to be changed from general goods to commercial cylinders along with the owner's name?

Also is a repainting or anything required because I remember the lorries used to have owner's contact details on the sides. So my friend being a new owner, should he also get this imprinted?

If the lorry has existing FC valid for few more months, should we carry out an FC when the ownership is being transferred?

Quote:
Originally Posted by BackSeatDriver
Body - LPG carriers require special frames, and exhaust has to be routed through front of the front tyres. Consider expenses for the modifications into OTR price
I understand the caging stuff on the lorry so that the cylinders do not move here & there. But what I couldn't understand is "exhaust has to be routed through front of the front tyres" as I've seen few lorries still plying with the existing middle exhaust near the rear wheel. Is this front setup mandatory?

Last edited by aargee : 9th August 2010 at 07:23.
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Old 9th August 2010, 07:53   #4
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@argee, while I cannot give you the kind of inputs that @BSD did, I would like to suggest that you contact the financers - if there's any trucks that are being defaulted on. You may be able to find fairly less used ones there. Had got a couple of leads this way when I was looking for a 207 (IDI version)
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Old 9th August 2010, 11:34   #5
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Condor's is a good suggestion; but go in for ethical financiers, like Sundaram. (at least, they have a reputation to maintain). You will not want to be hounded by the former owner(s).

One problem in this field is the practice of people buying vehicles and then operating them without getting the names of the registered owner transferred. While the procedure is simple, and non-complicated, since this involves transfer fo the permit too which requires a sanction at the meeting of the Roat Transport Authority, (a committee considting of the DGP, RTO and the district collector), it is time consuming, and you need to wait till the meeting convenes to get the papers moving.

You may want to take a power of attorney from the selling registered owner to avoid having to run to him for signatures in unexpected places.

There are two kinds of regulations applicable here - one is those applicable to all kinds of goods vehicles - permit forms part of that. I think you should talk to a regular RTO agent about this.

Fitness is applicable to the vehicle, so no need to take a fresh FC when you buy the vehicle. What is painted on teh side fo the vehicle is the registered owner's name, so do change it till the papers are fixed.

Also, do not operate the vehicle till you get the insurance transferred to your name. This will cost only less than Rs. 100/-. Insurance coverage has nothing to do with the registered owner, (who is shown as the registered owner). So, after purchase, first take delivery, (drive it to your place) and next get the insurance transferred to your name before taking it out on teh roads again.

For transfering registration at the RTO, all that is required is a valid insurance policy in respect of teh vehicle, and name of the insured is not relevant. So, a vehicle can be in name of X in RTO, but the insured person could be Y. Make sure that Y is you.

Also, ask the insurance company if they have any special coverages for moving LPG cylinders. Try to take out a third party damage coverage with unlimited cover. The incremental costs would be minimal. An accident can be very costly affair, especially on crowded city roads.

It is the next part of regulations applicable to the vehicle that I am not sure of - those applicable for transport of hazardous materials; all I can say is that moving LPG attracts these rules. The gas agency / the company officials oguht to be able to guide you here.

You also probably may require licence from the Explosives departemnt (a Central govt. department).

I believe the requirement to route exhaust through the front of the front tyres is imposed by the explosives department. Probably, it applies to tankers only. You also need to confirm if modifying a normal lorry to carry LPG cylinders is acceptable. Asking around with other owners may help.
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Old 9th August 2010, 12:25   #6
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@BDS & Condor - Approaching a financier is an excellent tip; Thanks, will recommend approaching DBS Cholamandalam/Sundaram/Shriram etc

I guess most of the inquiries needs to be done from the gas company & RTO rather than experimenting on things especially when it comes to permits on both LPG as well as usage.

I will forward all your suggestions. Thanks guys.
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