Car buying/selling tips - Protect yourself when buying or selling your car in India

Don’t end up buying a stolen car!

IMPORTANT:  Loans on the car by prior owner

In case the used car you are buying had been financed by a finance company or bank. Then you MUST get a form 35 NOC from the finance company or bank that provided the car loan. Do not take verbal guarantees that the loan has been paid off. Even an ordinary letter from the finance company saying they have no financial interest in the car should not be accepted. The proper procedure for this is to get the no objection certificate on Form 35.

How to check used car's before buying one . . .

Buying a used car can save you money, however buying the wrong used car can some times end up costing you almost as much as a new car! For the majority of us, when it comes to cars we know little about them other than just knowing how to drive them. The best way to get the used car you are going to buy is of course to get the car checked thoroughly at a garage by a mechanic. How ever assuming that this option is not available. Lets see what a novice can do to check his used car before making a final purchase. Things to take along when checking a used car for purchase: 1. Take a paper and pen/pencil with you so that you can note down the engine and chassis numbers from the car to verify that they match the numbers on the documentation provide. You may also want to make a list of any problems you discover while inspecting the car. This will give you an idea of how much you may have to spend to get the car fixed and also help bring the price down by telling the seller the work the car will require. 2. A musical CD or cassette tape with you will help to determine if the stereo system is in working condition. 3. A flashlight is also recommended. You may or not need it, but it doesn't hurt to take one just in case you need it to look into a corner of the car or under the hood where the lighting is low.

Points to remember when inspecting a used car for purchase.

Check the body of the car. While cosmetics is important to most buyers. When inspecting a used car that you are contemplating on buying, look for signs that may indicate that the car has been involved in an accident. Check the chassis, the body-line should give you an indication if the car has been involved in an accident. Personally I would NOT buy a used car that has been recently repainted. Repainting hides many things. Look for signs of repainting in case the full car has not been painted. Inside the trunk, under the hood are places that you should also check. car trouble. The accessories such as stereo, air conditioning cost cost a lot of money to repair or replace. heck the air conditioning, stereo, power windows etc to make sure they all work. If you point out the work required before buying the car the chances are that the seller may pay to get some items fixed or reduce the price of the vehicle. Check the tires for excessive tread wear. Remember to check all four tires. Excessive tread wear or uneven tread wear on tires may indicate problems with steering or suspension misalignment. Check the oil to see the condition of the oil. If dirty then it may be a sign of poor maintenance. Oil change is one of the easiest and necessary form of car maintenance. Start the car and let it idle with the hood open. Excessive engine vibration may mean motor mounts problems. The engine should run smoothly without surging or sputtering. When pressing the accelerator the engine should accelerate without hesitation. Check the steering wheel. With the car idling and not in motion, turn the steering wheel on right and left. There should be no play in the wheel before the tires move to turn. Take a test drive to get the feel of the cars pickup and to get an idea of the engines power. Check for other tell tale signs like weird noises when driving. Of course don't keep the stereo playing when taking a test drive. Check the application of the brakes while driving at a higher speed, The car should stop straight and come to a smooth stop and not veer sideways. A test drive means a test drive, not just going around the block. Don't rush yourself. Examine all documents to ensure the car you buy does not have a loan on it from a bank or car financing company. Checking and acquiring all relevant documents is necessary. Don't let a low price for a car entice you into buying without checking the vehicles documentation. You may end up buying a stolen car.

Selling your Car in India - Alert

So you get an offer to sell your car for a great price. You sign the ownership papers and hand them over to the buyer after he has paid you in full. What many people fail to realize is that when it comes to calculating the sale value of used cars in India one of the major factors is the number of owners of the car being sold. Naturally a single owner car would have more value than a car that has had two, three or four owners. The reasoning for this is also obvious. If a car has been sold three times then their must be something wrong with it. Many prospective buyers will shy away from such deals. Needless to say that one owner cars draw the most buyers and hence money.

Why You Should be Alert

If you end up selling your car and just signing away the ownership, the risk is that the buyer will not bother to change the vehicles ownership to his name. He or She does not need to do so as you have signed and given them the ownership, they have possession of the car and they don't want to loose out when they sell the car in the future. Their idea being to keep the list of transfers of the vehicle down to what it is presently. So they keep driving the car that shows you as the owner. In a majority of such cases nothing happens. However what happens when their is a major accident. Suppose someone is killed and the car abandoned. Who is the owner of the car! It takes the Transport registration authorities no time to find that you are the registered owner.

Precautions when selling your car in India

When selling your car in India don't hand over the car until the vehicle is transferred in the buyers name. Go to the RTO office with the buyer if you have to and ensure the transfer of registration. Another option is to give the documentation after getting the money but keep the car in your possession until the buyer returns with the transferred documents. You may be able to avoid transfer hassles if you sell your car to a reputable dealership. The dealership will give you a cheque from the dealership account.     I recently sold my Maruti Swift to Maruti dealership even though I was privately offered Rs25,000 more just to ensure transfer problems did not occur.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Protect yourself when buying or

selling your car in India

Car buying/selling tips

Don’t end up buying a stolen car!

IMPORTANT:  Loans on the car by prior

owner

In case the used car you are buying had been financed by a finance company or bank. Then you MUST get a form 35 NOC from the finance company or bank that provided the car loan. Do not take verbal guarantees that the loan has been paid off. Even an ordinary letter from the finance company saying they have no financial interest in the car should not be accepted. The proper procedure for this is to get the no objection certificate on Form 35.

How to check used car's before

buying one . . .

Buying a used car can save you money, however buying the wrong used car can some times end up costing you almost as much as a new car! For the majority of us, when it comes to cars we know little about them other than just knowing how to drive them. The best way to get the used car you are going to buy is of course to get the car checked thoroughly at a garage by a mechanic. How ever assuming that this option is not available. Lets see what a novice can do to check his used car before making a final purchase. Things to take along when checking a used car for purchase: 1. Take a paper and pen/pencil with you so that you can note down the engine and chassis numbers from the car to verify that they match the numbers on the documentation provide. You may also want to make a list of any problems you discover while inspecting the car. This will give you an idea of how much you may have to spend to get the car fixed and also help bring the price down by telling the seller the work the car will require. 2. A musical CD or cassette tape with you will help to determine if the stereo system is in working condition. 3. A flashlight is also recommended. You may or not need it, but it doesn't hurt to take one just in case you need it to look into a corner of the car or under the hood where the lighting is low.

Points to remember when

inspecting a used car for purchase.

Check the body of the car. While cosmetics is important to most buyers. When inspecting a used car that you are contemplating on buying, look for signs that may indicate that the car has been involved in an accident. Check the chassis, the body-line should give you an indication if the car has been involved in an accident. Personally I would NOT buy a used car that has been recently repainted. Repainting hides many things. Look for signs of repainting in case the full car has not been painted. Inside the trunk, under the hood are places that you should also check. car trouble. The accessories such as stereo, air conditioning cost cost a lot of money to repair or replace. heck the air conditioning, stereo, power windows etc to make sure they all work. If you point out the work required before buying the car the chances are that the seller may pay to get some items fixed or reduce the price of the vehicle. Check the tires for excessive tread wear. Remember to check all four tires. Excessive tread wear or uneven tread wear on tires may indicate problems with steering or suspension misalignment. Check the oil to see the condition of the oil. If dirty then it may be a sign of poor maintenance. Oil change is one of the easiest and necessary form of car maintenance. Start the car and let it idle with the hood open. Excessive engine vibration may mean motor mounts problems. The engine should run smoothly without surging or sputtering. When pressing the accelerator the engine should accelerate without hesitation. Check the steering wheel. With the car idling and not in motion, turn the steering wheel on right and left. There should be no play in the wheel before the tires move to turn. Take a test drive to get the feel of the cars pickup and to get an idea of the engines power. Check for other tell tale signs like weird noises when driving. Of course don't keep the stereo playing when taking a test drive. Check the application of the brakes while driving at a higher speed, The car should stop straight and come to a smooth stop and not veer sideways. A test drive means a test drive, not just going around the block. Don't rush yourself. Examine all documents to ensure the car you buy does not have a loan on it from a bank or car financing company. Checking and acquiring all relevant documents is necessary. Don't let a low price for a car entice you into buying without checking the vehicles documentation. You may end up buying a stolen car.

Selling your Car in India - Alert

So you get an offer to sell your car for a great price. You sign the ownership papers and hand them over to the buyer after he has paid you in full. What many people fail to realize is that when it comes to calculating the sale value of used cars in India one of the major factors is the number of owners of the car being sold. Naturally a single owner car would have more value than a car that has had two, three or four owners. The reasoning for this is also obvious. If a car has been sold three times then their must be something wrong with it. Many prospective buyers will shy away from such deals. Needless to say that one owner cars draw the most buyers and hence money.

Why You Should be Alert

If you end up selling your car and just signing away the ownership, the risk is that the buyer will not bother to change the vehicles ownership to his name. He or She does not need to do so as you have signed and given them the ownership, they have possession of the car and they don't want to loose out when they sell the car in the future. Their idea being to keep the list of transfers of the vehicle down to what it is presently. So they keep driving the car that shows you as the owner. In a majority of such cases nothing happens. However what happens when their is a major accident. Suppose someone is killed and the car abandoned. Who is the owner of the car! It takes the Transport registration authorities no time to find that you are the registered owner.

Precautions when selling your car in

India

When selling your car in India don't hand over the car until the vehicle is transferred in the buyers name. Go to the RTO office with the buyer if you have to and ensure the transfer of registration. Another option is to give the documentation after getting the money but keep the car in your possession until the buyer returns with the transferred documents. You may be able to avoid transfer hassles if you sell your car to a reputable dealership. The dealership will give you a cheque from the dealership account. I recently sold my Maruti Swift to Maruti dealership even though I was privately offered Rs25,000 more just to ensure transfer problems did not occur.
car doctor cartoon girl looking at car engine next previous
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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 Informing  educating and connecting Indians across the globe
twitter  Follow us on A Book for NRIs PIO & OCI Information at your fingertips!
Available worldwide from Amazon
the nri guide Information, tips & guide for non-resident Indians to help them understand and deal with several issues in India
Free delivery with Amazon Prime