Buying A Second Hand Car: Things You Should Look Into

India has seen are large and accelerated growth in the second car segment. Even some first time car buyers are looking at buying pre-owned car as way to hone their driving skills before even they buy the first hand.  2015 has been a year where the new cars sales though even not seen the growth that the industry expected but the sales of second hand cars have seen growth of 15% .  Online auto portals have great enablers to drive this numbers which even forced established car manufacturers like Maruti Suzuki ,Mahindra & Mahindra and even luxury brands like Mercedes to open new retails format to cater to these rising new breed of car buyers.

Buying a second hand require a set of skills to judge the quality of the vehicle specially when buying directly from individual sellers and not from branded outlets of second hand cars like Maruti True Value. There are also certain specific things like proper transfer of ownership and insurance which also needs a proper consideration.

Few quick things one should look into:

When you have already decided what to buy and from who to buy there is an array of documentation that you need to go through so that the transaction that you are getting into becomes valid and you don’t face future problems. The various documents that needed for the transfer of car’s ownership in your name are:

  1. Original copy of registration certificate (RC)
  2. Application form 29,30 ( with sellers and buyers signature)
  3. Affidavit from the seller and purchaser regarding transfer of ownership
  4. Address proof of purchaser
  5. No objective Certificate from the concerned RTO/AETC  of transport vehicles
  6. Valid insurance certificate
  7. Appropriate fee

What about car insurance?

The first and foremost thing that you should do after you bought the car is to get the name in the Car insurance policy changed which technically means transfer of ownership of the insurance policy in the name of the new owner. There are few documents which need to submit with the insurer to get it done, which are:

  1. Application of change name , every insurance company have their own format for submitting this request  so you can get one from the them
  2. Original registration certificate ( RC)  with the transferee name ( here the transferee means the new buyer)
  3. Old insurance certificate.

Once you have submitted all these you need to pay a small amount of fee to get the transfer process done.

But other than all these what if the old owner had no valid Car insurance policy?  In a situation like this just look into the number of days before which the old policy has expired. if it is only 1 or 2 days, then the process become very simple but if it is month or more than that then you would always have 

Articles