Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 13th November 2007, 23:17   #1
Newbie
 
Join Date: Nov 2007
Location: chennai
Posts: 13
Thanked: 7 Times
Default payment procedure to buy 2nd used car in chennai

Hello

What is the procedure to buy a second hand car in chennai. I had nailed down a car and given a token advance to the selller. He has some loan on the car. Broker and the seller told me to first pay off his loan and take a no objection certificate and pay the remaining money to the seller. Till this process is complete i won't have positionof the car. if someone else gone thru similar scenario can you please post it and help me out on this

thanks
srini
srini234 is offline   Reply With Quote
Old 14th November 2007, 10:35   #2
NIP
Senior - BHPian
 
NIP's Avatar
 
Join Date: Jun 2006
Location: Bangalore
Posts: 1,151
Thanked: 81 Times
Default

AFAIK, in bangalore, its the sellers job to pay off the loan and get the NOC. they're just gettin you to do the dirty work. i think these guys are takin you for a ride...

Last edited by NIP : 14th November 2007 at 10:36.
NIP is online now   Reply With Quote
Old 14th November 2007, 10:51   #3
BHPian
 
gbpscars's Avatar
 
Join Date: Apr 2006
Location: Navi Mumbai
Posts: 402
Thanked: 2 Times
Default

Quote:
Originally Posted by NIP View Post
AFAIK, in bangalore, its the sellers job to pay off the loan and get the NOC. they're just gettin you to do the dirty work. i think these guys are takin you for a ride...
i 2nd NIP. it just does not sound right. be it bangalore or chennai. it is a simple money dealing.

you will have nothing to do with his loan.

for eg., in my case all i did was give the agent (i had to chose this agent as this particular car was the best in my 2-month search) an advance of 10K and the rest of it was paid to him in 2 days by DD.

he gave me the car keys right then and i drove out of his premises with the papers in the old owner's name still.

EDIT: i was given a sale deed on stamp paper as proof of sale until i got my papers in hand.

i got my papers including NOC, RTO transfer, RC book and insurance transferred in my name and delivered at my home in 3 days flat.

so take care.

Last edited by gbpscars : 14th November 2007 at 11:04.
gbpscars is offline   Reply With Quote
Old 14th November 2007, 11:05   #4
Senior - BHPian
 
Join Date: May 2007
Location: Bangalore
Posts: 3,652
Thanked: 244 Times
Default

You should have taken the possession of the car when you cleared his loan with the sale deed paperwork completed.

What if he refuses to handover the car now ??

Quote:
Originally Posted by srini234 View Post
Hello

What is the procedure to buy a second hand car in chennai. I had nailed down a car and given a token advance to the selller. He has some loan on the car. Broker and the seller told me to first pay off his loan and take a no objection certificate and pay the remaining money to the seller. Till this process is complete i won't have positionof the car. if someone else gone thru similar scenario can you please post it and help me out on this

thanks
srini
dadu is offline   Reply With Quote
Old 14th November 2007, 11:07   #5
Senior - BHPian
 
Surprise's Avatar
 
Join Date: Feb 2005
Location: Chennai
Posts: 2,299
Thanked: 129 Times
Default

In some cases the owners ask the buyers to close the loan as they dont want to run around to source the money for closure.

Pay the amount (minus loan), get all the transfer papers signed by the seller, visit the bank along with the seller and close the loan (check for pre-payment penalty, if any) & get a payment advice. I guess generating "NOC" will take some time. Take the car and ask the owner to advice once he gets the NOC.

Put every transaction clearly in a paper and get it signed by him (please ensure that you're dealing with the person in whom name the car is registered)

Any issues with the above model?
Surprise is offline   Reply With Quote
Old 14th November 2007, 18:30   #6
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,147
Thanked: 143 Times
Default

Get the papers to be submitted to the RTO signed by the seller first. It is the sellers' obligation to get the NOC from the financier. An NOC from the financier is a must to get the regsitration transfered to your name. IMO, nothing to worry if the registration continues in the seller's name if you have some paper - like a sale letter (in the prescribed form) or a sale deed or its copy in your possession.

The most crucial document (to protect YOU in case of a liability arising out of accident, etc) is the insurance. Just remember to pay a nominal amount (25 or 75 rupees) to the insurance company and have the insurance transferred to your name. I do not think the insurance co will ask for any formalities for that except to see the sale letter, and originals fo the RC. Again, it is not necessary to have the vehicle transferred at the RTO to your name in order to have the insurance in your name.
BaCkSeAtDrIVeR is offline   Reply With Quote
Old 15th November 2007, 11:43   #7
tez
BHPian
 
tez's Avatar
 
Join Date: Jun 2007
Location: pune
Posts: 381
Thanked: 16 Times
Default

Make sure you check if there are any prepayment or foreclosure charges for the loan. Those should be paid by the seller and not included in the price of the car.
tez is offline   Reply With Quote
Old 15th November 2007, 13:53   #8
BHPian
 
cypher's Avatar
 
Join Date: Jul 2007
Location: Pune
Posts: 153
Thanked: 3 Times
Default

I recently sold my car which I had bought on a loan. I did all the work of getting the NOC from the financier and removing the hypothecation from the vehicle RC book.

When the buyer gave me the DD, I gave him the NOC, signed RTO transfer papers and the original vehicle papers. I kept a copy of everything and an original copy of a document stating that I had sold the vehicle to him.

You should not have to run around to get the seller's loan cleared.
cypher is offline   Reply With Quote
Old 15th November 2007, 14:36   #9
Senior - BHPian
 
esteem_lover's Avatar
 
Join Date: Jul 2006
Location: Madras/Py
Posts: 7,554
Thanked: 445 Times
Default

I sold a car with some unpaid loan left in it. I took an advance of the loan amount from the buyer, pre closed the loan, got the NOC from the bank & handed everything over to the buyer along with the other papers & the car. The whole process took 3 days.
esteem_lover is offline   Reply With Quote
Old 15th November 2007, 15:20   #10
Senior - BHPian
 
Surprise's Avatar
 
Join Date: Feb 2005
Location: Chennai
Posts: 2,299
Thanked: 129 Times
Default

Quote:
Originally Posted by esteem_lover View Post
I sold a car with some unpaid loan left in it. I took an advance of the loan amount from the buyer, pre closed the loan, got the NOC from the bank & handed everything over to the buyer along with the other papers & the car. The whole process took 3 days.
Whats the loan amount and the sale price?
Surprise is offline   Reply With Quote
Old 15th November 2007, 16:25   #11
Senior - BHPian
 
esteem_lover's Avatar
 
Join Date: Jul 2006
Location: Madras/Py
Posts: 7,554
Thanked: 445 Times
Default

unpaid loan was close to a Lakh. sale price was 2.6L.
esteem_lover is offline   Reply With Quote
Old 15th November 2007, 16:35   #12
Senior - BHPian
 
Surprise's Avatar
 
Join Date: Feb 2005
Location: Chennai
Posts: 2,299
Thanked: 129 Times
Default

Probably you would have sold that car to someone from known sources else you would have signed the transfer papers to them. If 'no' for the above two, youre a very trustworthy seller from the eyes of the buyer.

I know few deals got canceled due to the above problem, both of them stand on their grounds to safeguard the transactions.

Last edited by Surprise : 15th November 2007 at 16:37.
Surprise is offline   Reply With Quote
Old 15th November 2007, 22:37   #13
BHPian
 
Join Date: Nov 2006
Location: Kolkata
Posts: 95
Thanked: 4 Times
Default

I have a few queries here.

1) What if the owner has some other bad loan with the same bank? Will the bank give a NOC for this car loan even if it is paid in full on behalf of the seller?

2) Until the NOC is got can the car be transferred to the new Owner in RTO?

3) If the car cannot be transferred, the new owner cannot get an insurance on the car (supposing the original owner is not transferring the insurance) - so he will be running the car without any cover?

4) What if the owner does not hand over/ misplaces the NOC once he gets it?

Please clarify - i am in the same situation.
dhiman is offline   Reply With Quote
Old 16th November 2007, 11:16   #14
Senior - BHPian
 
Surprise's Avatar
 
Join Date: Feb 2005
Location: Chennai
Posts: 2,299
Thanked: 129 Times
Default

Quote:
Originally Posted by dhiman View Post
I have a few queries here.

1) What if the owner has some other bad loan with the same bank? Will the bank give a NOC for this car loan even if it is paid in full on behalf of the seller?

I don't think this should be an issue. Bank welcomes any settlement against loans (may be they charge pre-payment penalty at their will) & issue NOC against settlement for that particular deal

2) Until the NOC is got can the car be transferred to the new Owner in RTO?

NOC is a must. Without No Objection certificate car cannot be transfered

3) If the car cannot be transferred, the new owner cannot get an insurance on the car (supposing the original owner is not transferring the insurance) - so he will be running the car without any cover?

Insurance name transfer cannot be done without doing the name transfer in the RC book (even if we have sale letter). Someone has said earlier that it's possible, but as fas as my knowledge goes transfer in RC book has to take place. Someone pls confirm.

4) What if the owner does not hand over/ misplaces the NOC once he gets it?

You can get a letter to that effect from bank or they will issue an duplicate NOC. Not sure about the charges associated with it. I guess this can be done by the person who has the authorization to do it

Please clarify - i am in the same situation.
My replies to your query inline
Surprise is offline   Reply With Quote
Old 16th November 2007, 13:49   #15
BHPian
 
Join Date: Nov 2006
Location: Kolkata
Posts: 95
Thanked: 4 Times
Default

Thanks a lot Surprise!
dhiman is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
What is the procedure for push-starting a car?? Deeps Technical Stuff 29 24th December 2014 15:28
Buying a car - What payment options? Cash, OD on FD or Loan? NFS The Indian Car Scene 62 18th September 2013 12:06
Booked the ANHC. but now asking for full payment before car arrival xenxer Indian Car Dealerships 13 12th July 2010 09:55


All times are GMT +5.5. The time now is 20:13.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks