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Paperwork While Buying a Used Car - Everything To Know!

Are you in the process of buying a used car? If so, congratulations! Not only will you save a lot of money, but if you're new to driving, scratches or dents on your used car won't give you heartache. Remember that a used car depreciates less than a new car. Buying second-hand car insurance is cheaper than insuring a new car. So, what you need to do now is to make sure that the paperwork for your used car is in order. This will save many future problems. Read on to know more.

  • The role of registration certificate when you buy a used car
  • A vehicle's registration certificate is proof of ownership and mentions the state and place where the vehicle is registered. This is the basic document related to your vehicle and when you buy a used car, you should first check that the registration certificate is in the name of the person selling the vehicle. When you buy a used car, you need to update the RC with the new owner's details before doing anything else. RC transfer can be done online today.


  • Car insurance related information
  • You need car insurance to legally drive a vehicle on a public road in India. An important thing to know about second-hand car insurance is that the original owner's insurance coverage only lasts for a few days after the vehicle is sold. Once the vehicle RC is transferred, you need to obtain car insurance in the name of the new owner. You can get the best deal when you buy car insurance online and the process is generally very simple.


  • Car’s service-related documentation
  • Many people don't think about it, but when you buy a used car it is very important to collect copies of all previous vehicle service records. This will allow you to ensure that the vehicle you purchase is properly maintained. Moreover, there is always the inherent risk that your vehicle may develop a problem with a part that is still under warranty. In such cases, the company will honor the warranty only if the vehicle has been serviced as per the manufacturer's routine. If you have all the vehicle service records, you can present them at the car service center to claim your warranty.


  • Forms 32 and 35
  • If the used car seller doesn't have enough cash to buy the car, they may have taken out a loan. Once the loan is paid in full, they get a No Objection Certificate from the financial institution. All such details are in Forms 32 and 35 which need to be attached for RC transfer. In their absence, the hypothecation of the vehicle cannot be removed. In such a case, the entire process of used car sale will come to a standstill because if the loan provider does not issue an NOC, the seller cannot sell the car.


  • Road Tax Receipt
  • Governments collect road tax when you buy a vehicle, and a lifetime road tax receipt is issued when the vehicle is registered. It's always a good idea to keep a scan of your driver's license, car registration, PUC certificate and second-hand car insurance policy, which you should always have with you when you drive. Copy of road tax receipt in your email if available.


  • Original Car Purchase Invoice or Sales receipt
  • This is another document that you must collect from the seller when you buy a second-hand car. The need for original sales receipts usually arises when there is a warranty issue with your car, where the manufacturer needs to fix a defect or part of the vehicle. Like the road tax receipt, it is best to keep a scanned copy of the purchase invoice in your email. Overall, buying a used car is a great deal, especially if you can check the records thoroughly and make sure the vehicle is in good condition.