List of Documents Required for Buying a New Car
In India, buying a new car is a significant investment and a status symbol. The perfect car is chosen consideration of available models as per the requirements and convinience of the family members.
Buying a new car involves various steps and essential documentation. An additional set of documentation is involved if you have taken a loan for purchasing car.
Once you seal the agreement with the car dealership, the next step would be the registration and car insurance procedures.
The paperwork involved in the process of registering the car can be intimidating. Ensuring you have the required paperwork in place will make the process smoother and more efficient. Read on to know more about the processes and documents related to buying a car through loan and more.
List of Documents Needed to Buy a New Car on Loan:
Availing a car loan requires careful paperwork to ensure a smooth and timely approval. For approval of the loan, the lender needs to verify your identity, address, and your financial capacity to repay the debt. Hence, a list of mandatory documents are essential for both salaried and self-employed applicants.
Following is the list of documents needed to buy a new car on loan are given below:
- Loan Application Form: Duly filled application form
- Identity proof: Aadhaar Card, Pan Card, Passport, Driving license, etc.
- Address proof: Aadhaar Card, Pan Card, Voter ID Card, Utility bills, life insurance policy, etc.
- Age proof: such as Birth Certificate of birth, Certificate of school transfer, 10th standard marksheet, etc.
- Bank statement for the last 3 months to 6 months.
- Signature proof: Passport or Pan Card.
- Income proof:
- For salaried individuals: Latest salary slips of last 2-3 months, Form 16 (for the last 1-2 years), IT Returns document (for the last 1-2 years)
- For self employed individuals/Businesses: Income Tax Returns (ITR) (for the last 2-3 years), Audited Balance Sheet, Profit & Loss (P&L) Account Statements (for the last 2 years)
- Employment/ Business proof:
- For salaried individuals: Employee ID Card, Employment certificate or Appointment letter
- For self employed individuals/Businesses: GST Registration Certificate, Business registration certificate, Business address proof (Utility Bills, Lease Agreement of Office)
- Proforma Invoice/Price Quote: Quotation from the authorized car dealer detailing the on-road price of the selected vehicle.
Remember to get all details such as the delivery date of the vehicle, price, add-ons, accessories, discounts availed. down-payment made and the on-road price of the car should also be recorded in writing. Ensure that you are aware of the processes involved in situations like delay in car delivery or cancellation of booking. Also, make sure that you have all the relevant receipts, temporary Registration Certificate, PUC Certificate, owner's manual, warranty cards, and roadside assistance number.
Documents Required to Book a New Car:
Documents required for booking a new car in India focus on identity, address, and nationality proofs.
Following is the list of documents while purchasing a new car:
- Proof of Nationality: To demonstrate your Indian citizenship. Show identification cards for voting, academic transcripts, and passports.
- Proof of identity: Identity documentation such as a PAN card, Aadhaar card, Passport, Voter ID Card, Driving License or other government-issued ID card.
- Residential proof: This includes lease and mortgage papers, phone and power bills, Aadhaar Card and legal documentation proving land ownership. Post booking a car, list down the following details in writing from the dealer. They are:
- Date of delivery
- On-road price of the car
- Discount availed
- Add-ons
- Down-payment provided
- Accessories price
- Processes involving cancelled or delayed deliveries
- Relevant receipts provided for later use
Documents Required while Registering a New Car:
After getting the registration of your vehicle done with the Regional Transport Office (RTO), you can get your new vehicle on the road. You must provide a comprehensive set of documents for the registration to be completed successfully.
Following are the documents required to be submitted while getting your new car registered:
- Proof of Identity: Aadhaar Card, Passport, Voter ID Card, etc
- Proof of Address: Aadhaar Card, Passport, Voter ID Card, Utility Bill, etc
- Proof of Age: Birth certificate, certificate of school transfer, 10th standard marksheet, etc.
- RTO Forms: Form 20, Form 22, Form 34, Form 21
- Copy of your PAN card
- Vehicle purchase invoice from the car dealer
- Car insurance copy
- Copy of your PAN card
- Temporary registration certificate which has been provided by the car dealer
- Receipt of registration fees
Documents Required while Re-Registering your Car:
It is mandatory to re-register your car in case the validity of original registration expires or when the owner permanently moves the vehicle to a new state. Re-registration is done to comply with local road tax and transport laws.
Given below are the documents required to be submitted while getting your car re-registered:
- Registration Certificate - Original Registration Certificate is required for re-registration
- Certificate of pollution under control
- RTO Application forms - Form 25, Form 28, Form 27, Form 20, Form 33 and Form 35
- Copy of PAN Card or Form 60/ 61 for identity verification and tax compliance
- Proof of Road Tax payment
- Valid car insurance policy
- Signature of the owner
- Chassis and Engine Pencil print
Documents Required to Obtain NOC for Your Car
Obtaining a No Objection Certificate (NOC) is essential in case If the owner of the vehicle takes it to another state. The NOC is required as it confirms that there are no pending taxes, legal issues, or hypothecation against your vehicle. Application for an NOC requires a set of documents as given below:
- Application: Four copies of RTO Form 28 must be submitted for application for grant of NOC.
- Vehicle Proof: Original Registration Certificate and Pencil Print of Chassis Number must be submitted.
- Identity and Address Proof: Aadhaar Card, Passport, Voter ID, etc.
- Copy of PAN Card
- Road Tax Payment Receipt or Tax clearance certificate as a proof that road tax has been paid.
- Copy of the valid insurance policy and PUC certificate
Documents Required for Car Insurance:
The Government of India has made it mandatory for every car owner to have car insurance under the Motor Vehicles Act, 1988. The purpose of this is to protect financially against any kind of damage or loss in case of accidents, theft, fire or natural calamities. Car insurance also covers third party liabilities ensuring the owners peace of mind.
Following are the documents required for purchasing a car insurance:
- Proof of Identity: Aadhaar Card, Passport, Driving License, etc
- Proof of Address: Aadhaar Card, Utility Bills, etc
- Driving License
- Registration Certificate of your vehicle
- Vehicle Invoice or Tax receipts for new cars
- Copy of previous insurance policy for renewal of policy.
- Pan Card or Form 60
- Passport size photographs
Car Insurance Formalities:
Narrowing down on a suitable insurance policy for your car must be done before starting the documentation process for registration.
You should ideally compare car insurance between providers before you actually buy the car.
Buying insurance from the dealership is not always the best solution as far as cost-effectiveness of the policy is concerned.
You should be aware of the fact that it takes only a few minutes to buy insurance online. Online policies are also cheaper and easy to maintain, and these offer greater security to the buyer. Additionally, it is possible to refer to these policies whenever required - all you need is an internet connection. The chances of misplacing the documents are minimised considerably as well.
The car insurance policy documentation is required for the registration of the vehicle. So, keep this ready in order to ensure a smooth registration process.
FAQs on List of Documents Required for Buying a New Car
- What happens if someone forgets to submit the necessary paperwork for a car insurance policy?
When you apply for car insurance, the insurer will contact you if any required documents are missing or if additional information is needed. If you applied through an agent, they would reach out to request the necessary paperwork. The policy will only be issued once all documents have been submitted and verified.
- Is Aadhar a need for vehicle registration?
Since 2021, the Central Government has made the Aadhaar card a requirement for all acts involving automobiles, including the registration of new vehicles.
- Is proof of local residence necessary for vehicle registration?
Among the accepted documents for proving your identity are your PAN card, Aadhar card, voter ID, passport, and driver's licence. Aadhar cards, ration cards, voter identification cards, account statements from nationalised banks, registered rent agreements, utility bills, and other papers are on the list of acceptable proofs of domicile.
- What is LMV's and MCWG's complete form?
Motorcycle With Gear is referred to as MCWG and LMV as Light Motor Vehicle.
- Is a driving licence necessary to purchase a vehicle in India?
In India, a driving licence is not a requirement for buying a car. But regardless of whether you decide to buy the car or not, the dealer will let you test drive any vehicle of your choosing if you have a licence.
- Do you require evidence of income before purchasing a car?
When choosing to finance or borrow money to buy an automobile, you must provide proof of your income. As evidence that you are employed and able to repay the loan, you must provide a year's worth of bank statements, three months' worth of pay stubs, and tax records.
- Does installing a CNG kit after the fact necessitate a new Registration Certificate for the vehicle?
Yes, installing a CNG kit after the fact on a vehicle calls for the RTO's formal approval in the form of a new Registration Certificate noting the bi-fuel status.
- When is a NOC necessary?
Two situations necessitate the submission of a NOC: 1) By the seller RTO if the ownership change is interstate 2) By the lender if the car was financed but paid off before being sold.
- Is the Vehicle RC need to be present while driving?
The vehicle RC must be carried when driving, whether it be a hard copy or a soft copy. If you don't, the traffic cop has the authority to take your car. According to the MV Act, the authorities may additionally impose fines of Rs.5,000 for the initial offence and Rs.10,000 for a second or subsequent offence.
- Can a car's insurance and registration have different names?
No, a car cannot be insured in someone else's name while being registered in someone else's. Car insurance and registration in India must be in the same person's name. If you decide on a used automobile, transfer the insurance once the RC has been done. A claim is likely to be rejected if both the RC and the insurance are on separate names.
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