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Documents Required to Buy a New Car in India
After much effort and research, you set out to buy your dream car. It is a great, joyous and proud moment for an individual to own a car. But beforehand, there are various documents needed to buy a car, like identity proofs, residence proofs, income proofs and much more. Read through to know about all the paperwork you have to present before the dealer and RTO to buy and register your new four-wheeler.
What Are the Documents Needed to Buy a Car?
Underlying are the documents required to purchase a four wheeler –
- Proof of Nationality - original and attested copy.
- Identity Proof - original and attested copy.
- Residency Proof – original and attested copy.
- Passport Size Photos.
- Bank Statements or Income Proof – for insurance formalities.
List of Documents Required at Different Stages of Buying a New Car in India
There will always be questions about the documentation when you bring home a new four-wheeler. Never be confused or carry the whole bunch of documents that you have at your disposal. For your convenience, we have put together a list of documents that you should be prepared with before purchasing your dream car.
Documents Needed to Buy a New Car on Loan
- Proof of Identity – Government-issued identity cards, PAN Card, Aadhaar Card.
- Proof of Residence – Utility bills, Legal land documents, Rental agreements or mortgage agreements.
- Proof of Income – To prove you are employed under an organisation and capable enough to bear the loan structure. One year bank statements, last three months salary slips, loan closure letters and two-year income tax returns.
Documents Required to Book a New Car
To book a new car, you need to display some documents, that are as follows –
- Nationality Proof – To prove you are a citizen of India. Show documents like Voter ID Card, school certificates, passports.
- Identity Proof – PAN Card, Aadhaar Card, or any Government issued Identity card.
- Residential Proof – Legal land ownership documents, electricity bills, phone bills, Rental and mortgage agreement papers.
After you book a car, always remember to note down the details in writing from the dealer. This includes –
- Delivery date
- On-road price
- Add-ons
- Accessories
- Discounts availed
- Down-payment made
- Processes involving delayed deliveries or cancellation
- Relevant receipts.
Documents Required for Car Insurance Formalities
Choosing the right insurance for your car is very important, and it also requires various documents –
- Aadhaar Card, PAN Card and Government-issued ID cards.
- Address proof of the policyholder.
- Recent passport size photograph
- Driving licence
- Bank statement
- Vehicle registration number
- Registration certificate
- PUC papers.
Documents Required to Register a New Car
As mandated under Section 39 of the Motor Vehicle Act, 1988, individuals should register the new vehicle with their respective RTOs.
Type of Document
| Type of Document | Name of Document |
|---|---|
| Application Form | Form 20 |
| Sales Certificate | Form 21 |
| Road Worthiness Certificate | Form 22 |
| Emission Control | PUC Certificate |
| Certificate of Clearance | Customs Clearance Certificate for imported four-wheeler |
| Proof of Sale | Manufacturer and dealer tax invoice |
| ID Proof | Driving Licence, PAN Card, Aadhaar Card, Passport |
| Address Proof | Driving Licence, Aadhaar Card, Passport. |
| Insurance | Copy of Car Insurance Cover Note |
| Temporary Registration Certificate | Copy of Car Insurance Cover Note |
| On Finance or Loan | Form 34 (Signed by financier and owner) |
| Affidavit | Non-Judicial Stamp Paper |
| Receipt | Challan receipt |
The above table consists of all the documents that an RTO may demand at registration.
You are here means you have acquired the knowledge of all the documents needed to buy a new car if you are an Indian resident. Apart from that, you can transfer your vehicle registration from one state to another. You will have to present the current registration certificates, NOC papers (Form 27) from the financing bank, and other copies of documents required during registration.
Moreover, apart from the excitement of owning a car, you need to be well prepared with all the paperwork to make the process smooth. Remember to note all the details in writing from the dealer at the time of booking so that you don’t get cheated by the dealer. When you decide to buy a car, clear your mind and arrange all the documents mentioned above and other documents demanded by the dealers to ease the purchasing process.
Frequently Asked Questions
Is a driving licence required to buy a car in India?
A driving licence is not a mandatory document while purchasing a car in India. But, if you possess a licence, the dealer can permit you to have a test ride of any car of your choice, whether you buy it or not.
Do you need proof of income to buy a car?
Proof of income is required when you opt to buy a car on loan or finance. You need to present your bank statements of 1 year, salary slips of the last three months and Income tax returns as proof that you are employed and capable of repaying the loan.