Want to buy/sell a used car; keep this checklist in your mind
There are a number of websites and places available in India where you can seek help for buying or selling a second-hand car. However, it is always helpful to do your own homework while entering into such deal.
Buying or selling a second-hand car always comes with some form of risk, and you would never like that your investment is affected in such deals. Therefore, it is always better to keep a tab on a few factors while opting for a used car.
According to BankBazaar report, here are a few important things that needs to be kept in mind for second-hand car if you want to have a hassle-free ride.
Firstly, always see that there are all the neccessary paperwork done while finalising a deal for the second-hand car. Because, there is always a possibility that you may be lured into a fradulent deal where you end up paying more.
The requisite paperwork
- Registration book: This is issued by the RTO and shows the date of the car when it was purchased. Along with this, details like engine number, the chassis number should be mentioned. In case a car had met with an accident, the new chassis number should be highlighted under RTO.
- Taxation book: The RTO tax is paid once in a lifetime which should have been paid by the original car owner.
- Invoice: Always remember to get an original invoice from the owner as it includes engine number, the chassis number and the date of delivery.
- PUC certificate: This certificate has a validity period of one year for all new cars and subsequently, a certificate has to be obtained every six months.
Every person keeps a car insurance to overcome the damage caused by theft or accident, hence it is important to check that the car you are purchasing has an insurance from the original buyer.
Also, the number of claims bonuses in the past two-three years also needs to be checked.
You can transfer the car insurance policy on your name from the original owner, or can open for new one. However, remeber that new policy should be opened within 14 days of the date of transfer of car or else your claim can be rejected during accident or mishap.
Documents needed for this procedure are - Proof of sale of the car, Proof of delivery of car to your possession, New RC book issued in your name, Request from the seller for cancellation of policy and Your application for transfer of the policy.
Certified pre-owned vehicles
A certified pre-owned vehicle gives buyer similar benefits like the purchase of new car. Under this, you get both additional extended warranty and original manufacturer warranty.
Check the car’s condition
Last but not the least, always see that the used car is in good working conditions and be worth your amount.
To find out the condition, take the car out for a test drive and get its parts checked by a trusted mechanic to see if all major systems like the engine, cooling, transmission and wheels are working fine and the car is in as good a condition as the seller claims.
As for seller of a used car, there are a few things to remember.
If you are planning to sell your car after six months of usage and have paid the premium for one year, then in such cases, you can ask the new buyer to pay his share of the premium - which means proportional premium.
Obtain an NCB
Always have an NCB (No Claim Bonus) retention letter from the insurance company, as these cannot be transferred even if you're transferring the policy. This benefit you can retain when buying a new car insurance policy.
You can cancel the insurance policy by submitting the following documents:
- Original policy letter
- Certificate of insurance i.e. Form 51
- Application for issue of a certificate of retention of the NCB.
In case, you are selling your old car and buying a used car, then you must submit these additional documents:
- Form 29, which is the form for transfer of car’s ownership
- Form 30, which is the report of transfer of the car
- Copy of RC Book issued in new owner’s name
- Proof of delivery of your old car to the new owner
Have a written contract that details the condition of the car, the sale price, and the effective date of transfer of ownership to the buyer, along with registration and insurance details.
Ensure that all formalities are completed once the sale has concluded. This will prove useful during future disputes.
Check car maintenance records
Negotiation of the car always goes better if you have detailed records of repairs and maintenance performed on the car. This indicates that you are a responsible owner and have maintained your car well at all times.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.