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Introduction
1. Should You Buy New or Used?
2. Find Out How Much You Can Afford
3. Finding your Car
4. Communicate with the Seller
5. Conduct a Through Walk-Around
6. Take It For A Test Drive
7. Need to bother with the paperwork?
8. Negotiating for a used car
9. Transferring Ownership
10. Closing the Deal
11. Inspection CheckList
12. Test Drive
 
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  10 Steps to Buy a Used Car  
Step 7: Do I need to bother with the paperwork?
  It is very essential for you to have all the proper papers of the vehicle before you give its full payment. The papers of the vehicle are as or more important than the vehicle and you must be careful about receiving all the documents before making the payment. You might be led into buying a stolen vehicle because the “offer is too good to refuse”. DO NOT BUY THE VEHICLE UNLESS YOU ARE CERTAIN THAT IT HAS A CLEAN RECORD. Please refer to this checklist before handing over your hard-earned money. The list is as follows:  
Registration Book (Registration Certificate / RC Book):
  This document or booklet is Issued by the RTO, showing date and address of registration and a record of the owners of the vehicle. The Cars Engine No. and the Chassis No. should be verified with that shown in the RC Book. If the car has met with an accident which involved changing the cars chassis, then the RC Book would have a noting of the new chassis no. R.T.O offices of certain states do not issue the registration certificate in the form of a booklet, the registration certificate can be a single document - 'Form 21'

Check the state of registration mentioned in the papers. The state of registration mentioned in the books should be the state in which you to use the car as according to the State rules, a driver is not allowed to drive a car that does not belong to that state. If the state of registration is different from the state that you plan to use the car, please ensure that the seller transfers the registration to the state that you plan to use the car in. Transferring the registration from one state to another is a cumbersome process and may cost money (particularly if entry is payable - normally applicable if the new car is transferred within 18 months to a different state). You must ensure that the seller gives you papers of the car with the registration of the vehicle in the correct state.
 
Taxation Book (Tax Certificate / TC Book):
This document will be showing the status of tax paid. The RTO tax is a once in a lifetime tax and should have been paid by the original owner of the car. If the owner of the car has not paid it, it can add up to double digits in thousands, which you will have to ultimately, bear.
Insurance
Insurance Policy, a must for driving your car around. It is a big assurance to you while driving. Insist on the insurance papers, as these papers are mandatory for any transfer by the RTO. Premium for Insurance is paid on a regular basis and it is advisable to check the due date. Also, ensure transfer of the insurance papers to your name.
Road Tax
This tax is also a recurring one and even though the payable amount is a paltry sum, a large number of owners ignore or forget about it. Ensure that the seller gives you the papers for this tax, or clears all payments before he sells the car to you.
PUC Certificate
Every car needs a valid PUC certificate. PUC Certificate is valid for a period of 1 year for all new cars and subsequently a certificate has to obtained every six months.
Invoice
  Do not forget to get the original invoice of the car from the original owner. You can know details like engine no., chassis no., date of delivery, delivery dealer and whether the car was financed or not.  
Documents for a Used Car that was bought on finance
If you are planning to buy a used car that was bought on finance by the seller, remember to collect the following documents in addition to the above mentioned ones.

NOC (No Objection Certificate)
From the finance company - see the original copy of this document and retain a photocopy. This document ensures that the finance company has no claim on the car anymore.

Form 35
You must keep a copy of this form, duly signed by the financier.

If you have any confusion in the above steps we recommend that you contact your local RTO office. Ask them what forms are required to transfer the title as well as any other information you need to provide them.
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