Detailed Guide on Buying a Used Car

A dream car is on everyone’s bucket list but not all of us can afford a brand new one. India’s growing market for second-hand cars is the way out for those who do not possess enough resources for buying a new car. The first question that arises in this context is, “How to buy a used car and from where?”. The answer to this is simple but the entire procedure of buying a used car is a bit complicated.

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Buying a second-hand car involves a lot of formalities and documentation such as getting RC (Registration Certificate) transferred in your name, insurance transfer, RTO paperwork, etc. An easier way is to opt for an RC transfer online facility that would simplify the process for you.

Here is a step-by-step guide to help you buy a used car:

A buyer needs to go through a lot of verification and documentation process in order to acquire the legal possession of a used car. One may use an RC transfer online facility to assuage the complexities of the transfer procedure. The steps to buying a used car are as follows:

  • Analyse the condition of the car: It goes without saying that it is very important to analyse the condition of the used car so as to get the worth of your money. Ask the seller to give an assessment report of the car’s condition, its history report and then take a test drive as well before finalising the deal. You should take a trustworthy mechanic with you to inspect the engine and other technical parts of the car. Once you do RC transfer online or offline wherever it might not be possible for you to cancel the deal if you find a fault later. Therefore, a detailed inspection of the car that you are going to buy is a must.
  • Acquire all the documents of the car: The list of documents that you need to acquire includes, the original invoice of the car, the service book, the insurance papers, RC papers, NOC (No Objection Certificate), bills of car’s toolkit(if any), certificate and bills of bi-fuel kit(if any), Road Tax Receipt and PUC(Pollution Under Control) certificate. Rectify the documents carefully. Look for errors for rectification onwards and make sure the papers are original.
  • Transfer the insurance and RC under your name: The most important part is transferring the RC paper and the insurance policy under your name. With the cooperation of the seller, transfer the documents under your name to acquire the ownership of the car. Without this, you will not be taken as a legal owner of the second-hand car. You can easily do RC transfer online and ask the insurance company if there is any online procedure they offer for such formalities and paperwork or not.
  • Submit required forms to the RTO: There are few forms that are taken as a vehicle transfer form which must be submitted to the RTO. Forms 28, 29, 30, 32 and 35 are involved in this procedure that serves different purposes. Consult your seller and submit the required forms in the RTO as soon as you buy the car.
  • Take a written contract: Ask your seller to sign a written legal contract that mentions the price at which you are buying the car, the condition of the car at the time of sale and the papers that have been given under your possession. This would serve as a legal document in future that will guarantee your claim on the car.
  • Undertake the car’s possession: After all the formalities are completed, the car is absolutely yours to take it home. The transfer paperwork must be completed before you take your new used car on the road. 

Importance of RC & Insurance Transfer

It is the most important part of the entire process of buying a used car and undertaking its possession. An RC paper contains all the details of the car and its owner. So when the owner is changed, the name must be transferred and the details must be updated accordingly. The best way of doing this is through the RC transfer online facility. Along with this, it is essential to transfer the insurance policy under the new owner’s name. In India, it is legally mandatory to possess atleast a third party insurance cover. You must check if the insurance needs any recent renewal or not. If it is a basic third party only insurance cover, you may transfer and update it to a comprehensive insurance plan in order to enjoy better service and benefits in future. A comprehensive insurance plan offers better coverage and protection to the owner of the car.

Getting everything verified while buying a used car is a crucial task as it involves a lot of formalities and documentation. One must know the steps involved in it to crack a successful deal.

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