What Are The Documents Required For Second Hand Car Purchase – The second hand car sector is showing promising growth over the years. The current value of the used car market is approx. USD 32.14 billion by last year and is going to reach a value of USD 74.70 billion by the end of 2027. So, the CAGR rate of the pre owned car market in India is around 15.1%. So, if you are thinking of buying a second hand car, then this blog will be quite helpful. As this covers all the information regarding the topic “What are the documents required for a second hand car purchase?”

Even during and after COVID Pandemic, the used car market showed positive growth. Even though consumer behaviour changes within two years, people are looking for economical and budget-friendly cars. In the middle of the pandemic, over 4.4 million units of second hand cars were sold in India. So, you should think of purchasing a second hand car. This will save money and you are contributing towards green earth.

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Where You Can Buy A Used Car | Different Channels In The Market

Generally, there are three kinds of channels or sellers in the Used Car Market:

Individual Seller – There are no middlemen and here you can get a good price. But there are some advantages to purchasing from an individual such as maybe not having a reliable source, no mechanic checking from the authorised company or dealer, wrong information, and even theft of the car.
Car Company – Many car companies deal in pre owned cars. There are many benefits of choosing a car company for purchasing a second hand car such as free servicing, exchange bonuses, thorough infections, and many more.
Used Car Dealer – A car dealer saves a lot of time and difficulty with documentation while buying a second hand car. Here, the dealer purchases the car from the previous owner and completes all the documentation needed. Now, he will transfer the ownership to you upon completing the process. Some pre owned luxury car dealers also provide loans to their customers at an attractive rate such as Car Studio Mohali.

What are the documents required for a second hand car purchase?

Registration Certificate (RC) – One of the important documents needed while buying a second hand car in India. So, what is RC? A Registration Certificate contains the summary of a particular vehicle like the date of registration, registration number, chassis number, and owner’s information. While buying a pre-owned car anywhere in India, check and verify the details of the registration certificate. If anything changes have been in the course of old ownership should be mentioned in this document like changes in engine, colour, etc.
Invoice of Car Purchase – Another important document is the invoice for car purchase which authenticates the car purchase from the established seller. This invoice document contains information regarding the company or car dealer you are purchasing the car and the owner’s details. Also, it contains the GST and final payment information.
Insurance Documents – Insurance is a crucial step and an additional expenditure while buying a car. But in the case of second hand cars, you have the choice of whether to continue insurance as per the old owner or switch to another. If you choose to stay with the old insurance policy, then you must check the history, whether the premium is paid or not, the expiration date, etc.
Service Records Book – A service record book gives a better look into the health of a car. It is important to know whether the car has been maintaining a good accident history. This will affect the overall cost of a car. This service book records a car’s replaced, damaged, and repaired parts.
Forms 28,29, and 30 – Both forms 29 and 30 contain information regarding the transfer of car ownership and intimation of the car ownership. Both forms 29 and 30 are mandatory whereas form 28 is a No objection certification which can be collected from the RTO office.
No Objection Certificate (NOC) – NOC basically notifies that the seller or last owner has paid the entire loan. Now, you don’t have to make any payments and you can hold the old owner responsible if some situation occurs shortly.
Road Tax Receipt – This receipt is being paid and collected by the first owner of a car. If not, it can lead to heavy penalties. However, this road tax differs from state to state, ideally starting at 2% and going up to 18%. So, you must collect the road tax receipt while buying a second hand car.
Certification for Bi-Fuel Kits – This certificate is only required for cars that run on more than one type of fuel. There will be no objection certificate (NOC) collected from the RTO office for bi-fuel kits.
Emission Certificate – A mandatory certificate by law and needs to be renewed every six months. These certificates check the pollution levels and condition of the engine and cost Rs. 100.
Owner’s Manual – People usually think manuals are the least important thing but you should collect the owner’s manual as it contains information regarding the fuse box, maintenance tips, and much more important information.

Conclusion

We hope you get all the information regarding the top What are the documents required for second hand car purchase. However, Car Studio is the leading pre owned luxury car dealer from Mohali that has over 100+models of cars. We have all the budget cars with complete documents and a thorough inspection of the engine. You are welcome to visit our showroom located in Mohali.