Documents Required For Buying A New Car

Buying a New Car is quite an exciting process, full of paperwork. It will be a smooth exercise if, throughout all this, you know what you need to do at all stages, be it the need for cash or a loan. We take you through the key documents to have or to be availed of at each stage of purchasing a new car.

Here in this blog is a clear list of the documents needed at the different stages one goes through to ensure hassle-free car buying.

List of Documents Needed to Buy a New Car on a Loan

A few important documents are required when purchasing a car on loan.

• Proofs of Identity: Aadhaar card, passport, driving license, and other recommended proofs. 
• Address Proof: Utility bills, life insurance policies, and documents in which the exact address is mentioned on the Aadhaar card. 
• Proof of Age: Proof includes birth certificate, school transfer certificate, and a 10th standard mark sheet. 
• Documents for proof of Income: The latest documents for this proof are Form 16, the latest salary slip, and income tax return documents. 
• Bank Statement: 3 latest bank statements.
• Dealer Price Quote: This will enable the financier to determine his loan amount based on the car's purchase price.
• Business Proof (in case of self-employment): Registration information of business.
• Audited Financials (in case of self-employment): Balance sheet, profit-loss statements.
• Signature Proof: Signature verification proof

Documents Required To Book A New Car

Documents Checklist towards booking your new car:

• Evidence of Nationality: Voter ID/passport/education certificates.

• Evidence of Identity: PAN card, Aadhar card, or any other government card.

• Residential proof: Rental agreement/mortgage paper/utility bills
• Details of booking: Obtain a written note from the dealer with the following:

1. Expected delivery date

2.On-road price of the car

3. Details of the discount

4.Cost of extra fittings or accessories

5.Amount of down payment made

6.Clear terms on late/cancelled delivery

7.Proper receipts on all the transactions carried out

Documents Required While Registering A New Car

Your new car has to be registered within 7 days of the actual purchase date. The documents that have to be attached are: 

• Form No. 20 (Updated)
• Form No. 21
• Form No. 22
• Insurance Policy Document (Attested)
• ID Proof of Owner
• Residential Proof of Owner
• PAN/Form No. 60/Form No. 61
• Customs Clearance Proof (in case of imported vehicle)
• Challan Receipt
• Affidavit ( Stamp) on Non-Judicial Paper
• Pencil-printed Chassis No
• Form No. 34 with Bank/Vehicle Owner’s Signature (if financed)

Documents Required While Re-Registering Your Car

If you wish to get your vehicle re-registered, then here are the papers that need to be arranged for it:

• The Original Registration certificate issued by the State
• Original No Objection Certificate, Form Number 28
• Form Number 27
• Form Number 20
• About the owner of the address verification paper - attested
• Insurance valid copy - attested
• PUC certificate - attested
• Fitness certificate (Needed for commercial vehicles)

Documents Required for Obtaining NOC

To obtain the NOC to change to a new state through re-registration, the following documents are to be provided.

• Application - 4 copies of Form No. 28
• Attested copy of RC Duplicate
• Road tax compensation certificate
• Tax clearance certificate
• Pollution certificate and insurance policy

Documents Required For Car Insurance

Make sure you have the following documents when buying auto insurance:

• Proof of Address: Aadhaar card, utility bills, life insurance policy, etc.
• Proof of Identity: Aadhaar card, passport, driving license, etc.
• Car Registration Certificate
• Driving License details
• Passport-size photo of the vehicle owner

Conclusion

A seamless experience in the purchase and ownership of a new car lies in having all the required documents ready at every step of the process. Arranging paperwork in due time beforehand will save you time and help you avoid probable hassles.

FAQs

Q. What documents are needed to buy a car?

To buy a car, you need identity proof, address proof, age proof, income proof, bank statement, price quote, and other documents required by a dedicated authority.

Q. Do I need address proof to buy a car?

Yes, address proof is required to verify where you live. It is also needed for registration, car loans, and insurance.

Q. What needs to be checked when buying a new car?

When buying a new car, check the vehicle details, price, delivery date, add-ons & accessories, and all other important factors that are mentioned in the documents. 

Q. Is ITR mandatory for car loans?

Yes, ITR is required for car loans, especially if you are self-employed. It helps in verifying your income and financial stability.

Q. What should I do if I lose any of the required documents?

If you lose any document, apply for a duplicate from the relevant authority. 

Q. Is Form 16 required for a car loan?

Yes, Form 16 is usually required, as it shows your annual income and tax deduction. It will help assess your ability to repay the loan.

Q. How do I obtain a No Objection Certificate (NOC) for my vehicle?

To get an NOC, submit Form No. 28, a duplicate RC, proof of road tax compensation, a tax clearance certificate, a pollution certificate, and an insurance policy.

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