Best USed Car Purchase documenatation RC Insurance complete

This is the final step & also most Important one in the used car buying process.

The Car is of NO Value if you DONT HAVE THE Right papers & Title is Transfered in your name ,In This Section we show you how to do the Right paperwork & keep yourself upto the mark in legal Formalities which are also as important !

Here you will come to know everything from paperwork in taking delivery to Getting the car Transferred in YOUR(BUYERS ) NAME ,

NEVER take delivery of a used car from a seller/dealer without the title & title papers!

Anyone who owns their car has the title,(a title means the100 % ownership to the car) so accept no excuses! If they are still paying off a car loan, the bank holds the title means they cannot sell the car Until the Loan is repaid. Do NOT give the seller balance due until the title is in your hand. This may mean going to their Bank/Financer , paying the check, and the Financer/bank will give the seller the NOC Letter(No Objection letter) & A Letter to R.T.O(Regional transport authority) & Insurance Company that they have received full & final payment from the party & That The HPA lien can be cancelled from the RC BOOK(Certificate of registration & insurance Certificate ) over, and they'll sign and hand it over to you on the spot. Don't fall for any tricks like "I'll have the title in a few days, once you pay me". Anyone about to sell a car that they own has possession of the title. . Be sure the seller has a valid driver license and that they are the owner of the car listed on the title. If they give any resistance, dot do the deal. . IMPORTANT :- ALWAYS GIVE THE CHEQUE IN THE SAME NAME AS MENTIONED IN THE RC BOOK(Certificate Of registration) .suspect foul play if seller asks payment in different individual name !ask for an explanation why?

We've seen news stories of people fall victims to scammers who selling cars by the side of the road. They do this so you can't find out where they live. Their selling price is very low to attract you in the deal(normally lower than the market price), but the ad says cash payment only. It's an amazing deal you feel , the guy priced it to sell, so he wants cash. People just go to their bank, withdraw 3lakhs and hand it over to a complete stranger with no title. Then he takes your money, gives you the car, but you go to get the vehicle Transferred in your name and the RTO Regional Transport authority tells you it's a stolen car. Then you lose all of your money. And foolish you paid in cash. The RTO will take the car from you because it's stolen property, and you are left with NOTHING! No money, no car, nothing. One victim lost 3lakhs(3,00,000/=INr) buying a small segment sedan. He did not receive the title from the "seller" so he got taken. Their brains were mesmerized by a low selling price. Why didn't they check the guy's credentials & perform history check?

How To Transfer A Title From Seller To Buyer If The Seller Owes Money To The Bank?

Some times what happens that its A genuine deal & the Seller Has HPA/Bank loan still on the car & the car �s really good,but the seller wants you to pay first then he will clear the HPA /Bank Loan ,What can you do in such a case?

Answer: The simplest part is the seller pays from his account to the bank for the time being,gets the NOC from bank & then you go ahead ,but suppose the seller does not have that kind of arrangement ,these are steps you can follow :-

Step1:- Ask the seller to Call the Bank who�s HPA is there on the Car(the bank whom the seller has taken loan from) ,Tell the Bank to Send them a Foreclosure Statement, a Foreclosure statement is the statement which the bank issues to seller about the total outstanding due from the seller ,In simple words it is their account statement till date Outsatndings minus all Emi�s paid ,So simple First step �Tell the seller to Call for a Forclosure statement from the bank�indicating the Final balance to be paid to them after considering all their charges for Closure of Loan Account & release Hypothecation on the Vehicle,

banks normally issue Foreclosure immediately on request

Step 2- After receiving the figure outstanding ,You can make payment directly to the Bank by issuing a Bank Draft /payorder payable in name of bank ,Example : you have done a deal for 100000/-Inr with the seller & Banks foreclosure statement indicates an outstanding of 45000/-INr ,you can pay Rs45000/- to bank directly ,by payorder in favour of bank & balance to Seller

Step 3- as an added safety you can Take a Confirmation on seller Letter Head Duly Signed by Owner of the vehicle Confirming the following Points:-

a)Confirming the sale of vehicle for Agreed Price of Rs_____________/=

b)AUTHORISING the Buyer(Your Name )to pay Directly to XYZ BANK LTD on BEHALF OF THE SELLER RS _____________/-WHICH SHALL BE TREATED AS PART PAYMENT OF THE SALE PROCEEDS

C)Confirming handing over of duly filled in Sale Documents & Transfer Set For R.T.O to the buyer.

Now lets come to Paperwork required its very simple & easy.As we said earlier Supply the dealer with the right paperwork & expect the same.your first step is to ask these items from the seller at time of delivery ,Below is the List of Documents to take from the Seller/Dealer,take a Print out of this & tell the dealer/Seller to keep these Items ready at time of delivery ,Look at dealers surprise .

LIST OF DOCUMENTS

(To be Taken from the Seller/dealer at time of delivery of Car)#

1)RC BOOK (Original certificate of registration)

2) Original Tax Book or Tax Receipt

3) OTT Receipt(One time Tax Receipt)

4)Duplicate keys

5)Original Insurance Certificate valid

6)Stereo panel (If Stereo or music system with detachable panel)

7)Owners manual

8)Invoice Copy (which th seller had received from the showroom when he had purchased the New Car )

9)Muncipal tax Receipt till 31-3-1999(only for car�s which are registered before 1999 march )

10)Transfer set for Signature as per RC book (If the seller does not have transfer set you can provide him which is provided in the CD)

A little introduction:-
If you're buying from a dealer make sure the car is delivered to you exactly as agreed on during the negotiations. go over your vehicle carefully before you accept it Check for a jack and spare tire, an owner's manual in the glove box, and see that any work specified at time of the deal has been done. Look at the odometer

Now that you have settled with the seller & given deposit of the car & decided a particular date for taking delivery of your car .There are some things that you need to follow & keep handy at time of delivery:

1) Transfer set (This is a set of RTO( Regional transport authority) forms ,needed to transfer the title(ownership) in your name .These forms needed to be signed by buyer & seller & submitted to RTO for transfer of title immediately after sale of car .Normally within 15 days of sale .we shall explain in detail further ,now lets see what is included in a transfer set

a)Official receipt :- this Document is the receipt of payment received by seller & is signed by the seller on the Bottom Right hand side (on the revenue stamp) This is one of the most important Documents on the sale & confirms the seller�s wilfull acceptance to sale & agree to full & final settlement being the value of his car is received from yourself(the buyer) with the car details mentioned ,date of sale ,buyers name(your name),Motor car number,Colour model etc & also states that the vehicle is his personal property & free from any tax liablilities & encumbrance .& he also states that any liablilities such as arrears of tax government & traffic offense prior to the date of sale shall be borne by the seller. The buyer gets the Original copy of this & xeox copy is given to seller for his records

This document is signed by the purchaser stating That the Buyer has taken delivery from the seller & signed by buyer at Bottom Righthand side of the note as shown in the picture .with details of vehicle car details mentioned ,date of delivery taken & time ,buyers name(your name),Motor car number,Colour model ,Engine no,chassis no,buyers Driving licence Number etc & also states that the vehicle is duly approved by you (the buyer) & found to your satisfaction & from today (means the date of delivery) onwards you (the buyer) are responsible to pay all types of traffic offences on the car ,Police litigation,RTO municipal,Octroi etc & also Insurance premium of the said vehicle .

This Delivery note Original copy to be given to Seller for his records & Xerox Copy to be kept with Buyer

C)Insurance Transfer Letter :- This letter form is to be signed by the SELLER ,where marked �S�

In the Insurancetransfer letter. This letter is to be submitted to the Insurance Company Along with Original Insurance Certificate to get the Policy transferred in your Name.

E)Form No :- 29 (Notice of Transfer of ownership (to be filled in duplicate & submitted to RTO)&

E)Form No :- 28 (No objection certificate (to be filled in Triplicate & submitted to RTO)

2)Apart from transfer Set You will require to Remove Chassis Print of Car (Click here On How to Remove Chassis Print Of Car ) Please keep a pencil & Blank white Paper (preferable white thin notebook paper)for removing the Imprint on this paper,which you have to submit later to RTO along with Other documents (transfer set)

3)The Cheque/bank Draft Balance payment Ofcourse in name of seller.(Do not forget to enter details of this Draft in the Official receipt details like ,Draft Number, name of Issuing Bank etc, Branch etc & date.

4)ADDRESS PROOF:- This is valid document to submit in RTO in original as Proof of address for Transfer in your Name & Address. Any one of the documents listed below is considered as a valid address proof.

Kindly note : Any of document should be in your NAME & SHOULD BE OF SAME ADDRESS where you would like to transfer (example You want to transfer the car in name of Ravinder Singh ,then Address Proof should be in name of ravinder Singh only ,means Electric bill or telephone bill

4) List of Documents (which you had given to seller earlier,which are listed above this chapter) 1)RC BOOK (Original certificate of registration)

8)Invoice Copy (which th seller had received from the showroom when he had purchased the New Car )

9)Muncipal tax Receipt till 31-3-1999(only for car�s which are registered before 1999 march )

Now that you have all the documents Follow these Step by Step Instructions below to Complete a Successful Delivery & Purchase

We know that you are Anxious to ride your dream car ,so all that anxiety is normal but always reach on time to your seller place ,& please atleast keep yourself free for that entire day .The delivery process takes atleast 1 to 1& half hour to be completed systematically & getting ,exploring the car ,fueling it up,doing a little cleaning & polishing or any extra fittings may be time consuming process hence the suggestion

Start by asking the List of documents ,Please be Polite with the Seller! While asking the Documents

A)Open the RC Book & on First page you see the name of First owner /seller & below is Signature of Seller & RTO Stamp (as shown in picture example below)

Below is example image of First page of RC BOOK(Name & address details is blured to protect privacy)