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Old 10th June 2024, 06:21   #1
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Should challans from previous owner be cleared before buying a used car?

I am buying a used car from Spinny, and it seems to have pending challans. Spinny has told me verbally that those would be cleared. But, there's no written assurance.

Is it the right way?

They say that the name transfer isn't going to happen if the challans are unpaid. So, if they don't pay it, will the car name transfer process be stuck? Will I be liable in any way for the challans if they don't pay them? Do I have any recourse? It seems as per the motor vehicle's act, the government makes the buyer responsible for delays in the name transfer process and not the dealer.

It is a BHPian owned car, and so I want to go for it. The car is well maintained. However, there are traffic violations and too many speeding tickets against the car. Some are in court, and there's no option to pay those.

As a first time car buyer, I need your advice. I was planning to make full payment and take delivery of the car from Spinny today itself. I was excited, but the excitement has diminished because of them acting shady. Although they assured me that challans would be cleared before delivery, they didn't. Then yesterday, they made another statement that they clear challans of cars together and not individually. Does it sound like a scam made to make the buyer pay challans? What do you think?

I don't want to leave the opportunity to buy a good car but at the same time, I don't want to get myself into liabilities of clearing challans due to someone else's carelessness.

Should I leave the process to Spinny? They don't sound reassuring. They haven't given anything in written

Last edited by wheelspinner : 10th June 2024 at 06:24.
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Old 10th June 2024, 08:01   #2
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Re: Should challans from previous owner be cleared before buying a used car?

It's better that the challans are cleared by the previous owner. Even if Spinny claims it will be done, tell them to pay. Or else tell them that you'll pay lesser price after deduction of the challan money as well as any court related expenses.

The paper transfer may get stuck due to pending challans
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Old 10th June 2024, 08:18   #3
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Re: Should challans from previous owner be cleared before buying a used car?

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Originally Posted by BoneCollector View Post
It's better that the challans are cleared by the previous owner. Even if Spinny claims it will be done, tell them to pay. Or else tell them that you'll pay lesser price after deduction of the challan money as well as any court related expenses.

The paper transfer may get stuck due to pending challans
There are 7 challans in "Court" stage, and these have no option for payment. How do we clear those? Approximately, how much are we looking at in terms of fines, and other payments like penalties?

Can't edit the post with another image, so sharing the imgur link of the court cases (challans).


There are two more challans as per the Spinny challan check website:
Should challans from previous owner be cleared before buying a used car?-c2.png


Seems highly unethical on Spinny's part if the owner is truthful about having paid the challans, and court cases to them

What do in this case?
Attached Thumbnails
Should challans from previous owner be cleared before buying a used car?-challan_case.png  


Last edited by wheelspinner : 10th June 2024 at 08:21. Reason: add imgur link to uploaded image
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Old 10th June 2024, 08:21   #4
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Re: Should challans from previous owner be cleared before buying a used car?

Ask them to clear all the fines including the ones with court proceedings (not just payment for them but a clearance/closure of proceedings for the offence). It is simply not worth your time, money and wasted stress in dealing with those things. Knowing our cops and judicial system, what may seem like minor issues can actually be a huge problem to handle with their harassment.
You’ve rightly identified the red flags, up to you to take a call now.

Last edited by NPV : 10th June 2024 at 08:24.
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Old 10th June 2024, 08:40   #5
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Re: Should challans from previous owner be cleared before buying a used car?

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Originally Posted by NPV View Post
Ask them to clear all the fines including the ones with court proceedings (not just payment for them but a clearance/closure of proceedings for the offence). It is simply not worth your time, money and wasted stress in dealing with those things. Knowing our cops and judicial system, what may seem like minor issues can actually be a huge problem to handle with their harassment.
You’ve rightly identified the red flags, up to you to take a call now.
They are simply refusing to do so. Saying that they do it in batches for multiple cars at the time of name transfer. So, I can stay rest assured that they will get it done. I took this with a grain of salt.

However, I really feel that this car is perfect, and I already spent a lot of time and money in inspections/leg work. Now, it is a heart over head decision. But I am trying to be cautious.

What is the worst case if I take the delivery of this car?
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Old 10th June 2024, 08:56   #6
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Re: Should challans from previous owner be cleared before buying a used car?

Quote:
Originally Posted by wheelspinner View Post
Should I leave the process to Spinny? They don't sound reassuring. They haven't given anything in written
Huge red flag - WALK AWAY!
Fact - Name transfer cannot happen with pending challans. So even if you pay Spinny & get possession of the car, RC will not be in your name.

Also, the challans is court are problematic. There's no assurance as to when those can get cleared, especially now that the previous owner has decided to sell the car.

Quote:
Originally Posted by wheelspinner View Post
What is the worst case if I take the delivery of this car?
However good the car is, the pending challans will make your ownership experience sour for sure! Please do not proceed with this car, look for another.

Pro Tip: Tell Spinny that you're backing off and they may magically clear the challans for you! If they don't, then this becomes a dead stock for them as well.
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Old 10th June 2024, 09:11   #7
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Re: Should challans from previous owner be cleared before buying a used car?

If I am not wrong, there are two reasons they are delaying the payment of challans

1) Not all challans are yet outdated/reach court. Once challans reach court, they would then make a settlement in court, where they would probably have to pay 20% of the total amount. And yes, their lawyer would periodically visit the relevant jurisdiction and get the settlement done.

2) They would not spend any money on a not sold car. It's as simple as increasing the cost of their inventory; this is why most online dealers do not renew insurance. The challans get cleared only when a customer commits to the sale and condition one is true.

So it boils down to whether you trust the brand and their sales guy to fulfil the commitment.

Regarding what can happen if challans are not paid, I am not a legal expert but some of the things that would happen are:
1) Car will not be transferred in your name unless the challans are cleared. This may have a further trickle-down effect
2) If you drive in the same jurisdiction as the challan, you may be stopped by cops and asked to pay the fine(s).
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Old 10th June 2024, 09:58   #8
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Re: Should challans from previous owner be cleared before buying a used car?

Purely a calculated risk. If you really like the vehicle so much just go ahead. The challans cumulatively are 5K or so, which is nothing compared to the asking price.

Further, the court challans are all for minor speeding or traffic light violations. Visit the court or find an agent and find out if you can quickly pay them off yourself if required.

Request the BHPian to help as well! One thing is sacrosanct: it cannot be transferred into your name unless every penalty is cleared.

Of course, Spinny should be given the opportunity to pay them first though.

Last edited by itwasntme : 10th June 2024 at 10:00.
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Old 10th June 2024, 10:16   #9
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Re: Should challans from previous owner be cleared before buying a used car?

I am not sure if the pending challans will necessarily impede the ownership transfer process. I had read somewhere that only blacklisted vehicles cannot be transferred.

My take is that if you absolutely like the vehicle, and the nature of the violations aren't serious, you can insist on a written undertaking from Spinny that they will clear all pending challans, and go ahead with the purchase if they provide it.

In a similar vein, it would take some time for the vehicle to be formally transferred to the new owner's name. Any violations in the transitional period would technically be recorded in the erstwhile owner's name.

So, there is a small grey area here and that is where Spinny should take ownership, and ensure trust between all 3 parties.

Wishing you the best with your decision!

Last edited by spindoc : 10th June 2024 at 10:42. Reason: Added an If clause
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Old 10th June 2024, 11:00   #10
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Re: Should challans from previous owner be cleared before buying a used car?

Quote:
Originally Posted by wheelspinner View Post
There are 7 challans in "Court" stage, and these have no option for payment. How do we clear those? Approximately, how much are we looking at in terms of fines, and other payments like penalties?
Hi

Permit me to share a legal/rules based view on your dilemma:
1) Per rules of RTO, car ownership transfer wont be permitted till all pending dues have been paid

2) If matter is in court and not settled in due course then implications may get stringer (depending on the magistrate) for the car owner. In this case, it seems they got stringer as court is not accepting any payments. The fines and penalties are now dependent on the magistrate

3) There are 7 challans and if all in court and unpaid for a long time, then make sure the you have updated yourself on each challan/case. As acquittal in one case may not necessarily procure acquittal in all

4) Do not accept a verbal commitment (to pay the fines) from any 3rd party

5) Ask yourself, would you be willing to invest time and effort visiting courts and its infrastructure to get resolution on these challans/cases.

Alternatively, reach out to a broker who may help get a closure on these cases for a fee.

Regards
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Old 10th June 2024, 14:30   #11
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Re: Should challans from previous owner be cleared before buying a used car?

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Originally Posted by Geo_Ipe View Post
Huge red flag - WALK AWAY!
Fact - Name transfer cannot happen with pending challans. So even if you pay Spinny & get possession of the car, RC will not be in your name.
At this point, they agreed to drop an email to assure that they will clear the challans and cases. I still take it with a grain of salt as the dealer is supposed to always keep cleared vehicles, with all papers up to date. Isn't it?

They weren't nice either, at times asking to go to the main office to clear those and those can be done before delivery. The office dude then said they don't have a timeline but they would it do it during name transfer. Can they be trusted?

Last edited by wheelspinner : 10th June 2024 at 14:52.
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Old 10th June 2024, 14:43   #12
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Re: Should challans from previous owner be cleared before buying a used car?

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Originally Posted by wheelspinner View Post
At this point, they agreed to drop an email to assure that they will clear the challans and cases. I still take it with a grain of salt as the dealer is supposed to always keep cleared vehicles, with all papers up to date. Isn't it?

They weren't nice either, at times asking to go to the office to clear those. The office dude then said they don't have a timeline but they would it do it during name transfer. Can they be trusted?
Not exactly; but the onus is on the seller, not the dealer. Also what you are facing is not as per the followed practice. When I sold my car a few years ago, Olx CashMyCar ran a check of pending ticket (there was one) and asked me to clear it before they made the payment. The responsibility was on me (the seller) to clear the ticket and show proof to them.

Given the total amount is not a large one, I doubt that's the concern here. Seems like take it or go kind of attitude being showed here. Talk to someone higher up the chain to get this resolved.

On the other hand, if you are okay with the monetary risk and potential hassle of the operational aspects of clearing out those court cases, then get something in writing with the seller signature that acknowledges the tickets that were of his doing; and deduct the money while making the payment.

Q - if it's a bhpian owned car, why not ping him/her and clear it up one-on-one? If s/he's not responding - then it's not a bhpian to put trust behind him.
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Old 10th June 2024, 14:57   #13
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Re: Should challans from previous owner be cleared before buying a used car?

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Originally Posted by ninjatalli View Post
Q - if it's a bhpian owned car, why not ping him/her and clear it up one-on-one? If s/he's not responding - then it's not a bhpian to put trust behind him.
They told me that they did pay Spinny for those. So asked me to take it up with Spinny.

Pinged them again. But no response. Probably will be forced to cancel this one. Disappointed as I travelled a long distance to close the deal. Have to part with it with a heavy heart
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Old 10th June 2024, 15:26   #14
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Re: Should challans from previous owner be cleared before buying a used car?

Dear Sir, my simple question to you is,

Is this the the only good car you are ever gonna find? Are there no other good cars on sale? Yes it may take few more days of effort, but that effort would be nothing compared to the stress you will have to put in going to courts, engaging lawyers etc. And trust me, the buyer and Spinny, will not even remember who you are if you are stuck later on.

I would suggest you ask Spinny to clear off all dues before you make the payment, or call off the deal.
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Old 10th June 2024, 15:35   #15
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Re: Should challans from previous owner be cleared before buying a used car?

If Spinny is not willing to talk with the current owner and get to clear the challans, then it is highly unlikely they do it after you buy the car. If it is a matter of few thousands, why is Spinny or the owner not paying them and closing it? If spinny has bought the car from the seller then they would have definitely deducted the challan amount from the selling price of the car to the original owner. Now what is stopping them from paying off the challans? I suggest you escalate it to someone higher up in spinny and get them to pay off the fines before you proceed. This is your first car. You would not want to run to courts and magistrate to clear the fines after you buy the car. That is not how the purchase is supposed to happen. I also feel there is more than what meets the eye especially since the owner BHPian is not responding to you.

I would walk away if I were you. My time and energy is more valuable than losing peace over these discrepancies. You will definitely find an equally good car with a clean record.


EDIT - One option that you can try is - Tell Spinny you will book the car and make 60% of the payment. Remaining payment will be done once they clear the challans. If they agree then you may proceed.

Last edited by sagarpadaki : 10th June 2024 at 15:41.
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