The pre-owned car market in India is large, as it offers multiple choices. However, the sector continues to be semi-organized due to which there are certain risks associated with buying a used car.
You need to check the paperwork before you make the purchase decision to avoid any problems. Here are five documents you should verify before buying a pre-owned car:
- Registration certificate (RC)
It is among the most important documents and provides details, such as engine and chassis number for the vehicle. In case the engine has been replaced, ensure the RC shows the new number. Moreover, if you see alphabets DRC, ask the owner about the same, as it implies that there is a duplicate registration certificate.
- Forms 32 and 35
These are required if the previous owner purchased the car with a loan. Ask the seller to provide you with a non-objection certificate (NOC) from the lender to ensure that the former owner has repaid the loan. In case you fail to do this, you may find yourself responsible for paying any balance amount once the RC is transferred to your name.
If you opt to transfer the car insurance to your name, review the expiry date and regularity of premium payment. Also, find out if the seller has filed a claim in the past, as it can give you an insight if the vehicle has been involved in an accident. Additionally, you need to inquire about the type of car insurance policy; whether it is a comprehensive plan or a third-party cover.
- Road tax receipt
This is a one-time fee that the owner should have paid at the time of registration. If the road tax is unpaid, the amount can run into lakhs with a penalty, and you will be responsible once you become the vehicle owner.
- Service book
It will help you evaluate the car’s condition. If the owner has serviced it regularly from an authorized center, you can be assured of the vehicle running smoothly.
If you are applying for used car loan, the vehicle documents must be in order. Therefore, you need to scrutinize these before buying the vehicle.
Features of a used car loan
- Available for different types of vehicles including multi-utility and sports-utility cars
- Affordable used car loan interest rates
- Offered for vehicles that are up to 10 years old
- Minimal documentation
- Quick and simple application and approval procedure
- Customized and flexible repayment options based on your financial situation
- Low one-time used car loan charges and processing fees
Pre-owned vehicle loans are offered by banks and non-banking financial companies (NBFCs) like Mahindra Finance. Visit the Mahindra Finance website to know about the used car loan eligibility criteria, terms and conditions.