Precautions To Consider Before Buying a Foreigner Owned Used Car

[Tornado]

Guys, one of my friend has been offered a sparingly used car at attractive price by an agent. The car is owned by a British citizen who is working with a British MNC. Recently he has got transfered to UK. He needs to leave India ASAP, hence he wants to sell his car earliest.

My questions:
1) Is it legal for a foreign citizen to own a car in India?
2) Is it legal for him to sell the car to an Indian? How much expenses are incurred by the buyer after the price of the car is paid , for registration and transferring the car on his name?
3) What are the documents to be checked before entering in to a sales agreement at the time of paying advance to him?

4)what documents ( originals and Xerox copies )should be collected at the time of paying advance.
5) Are there any police and MEA formalities to be completed on the part of both owner and buyer before or after such a deal?

Is it legal for the owner(seller) to leave India before the RC and car is transfered on the name of the buyer?
What happens if the foreigner fails to sell the car( does not find a buyer) and leaves the country ?
Is it allowed for him to leave the country in such cases?

 

[Akash1886]

Re: precautions to taken before buying a used car owned by a foreigner.

My questions:
1) Is it legal for a foreign citizen to own a car in India?

Yes dear, One of my dad's colleague owned a Chevy Optra and he was a Czeck National.

2) Is it legal for him to sell the car to an Indian? How much expenses are incurred by the buyer after the price of the car is paid , for registration and transferring the car on his name?

Why not! There is no major expense involved. Your friend needs to get in a proper sales deed made on a stamp paper that needs to be signed by both parties.

3) What are the documents to be checked before entering in to a sales agreement at the time of paying advance to him?

All the 3 major Car documents i.e RC, PUC and Insurance. Check his proof of resident country and also after you pay him advance do get a letter of acceptance signed from him. Also, Insurance needs to be transferred in the new owner's name at earliest on priority.

4)what documents ( originals and Xerox copies )should be collected at the time of paying advance.

Originals:

RC, PUC, Insurance, Sales Deed, Receipt of Payment.

Xerox: You give it to the seller.

Payment receipt and Copy of Sales Deed.

5) Are there any police and MEA formalities to be completed on the part of both owner and buyer before or after such a deal?

You can opt for it. Rather it is safe to get the car history verified from local police station. It is just for benefit of the buyer. There are agents who for their own selfish interest hide such info.

Is it legal for the owner(seller) to leave India before the RC and car is transfered on the name of the buyer?

See, this is possible but in one case, i.e if the seller sells the car to his company and takes money. His company may in turn hire a agent/ outright sell the car as their property.

What happens if the foreigner fails to sell the car( does not find a buyer) and leaves the country ?

It can either be parked in the premises of his company or even in the embassy of his country in India.

Is it allowed for him to leave the country in such cases?

Definitely he can go to any country. The car stands secured in his company/ embassy.

Also, it is imperative to perform PDI of used car.

PS: Do check if the vehicle is on Loan, if so, then do obtain an NOC from Bank and also remove HP from RC of the vehicle.

Regards

Akash

 

[Tornado]

Re: precautions to taken before buying a used car owned by a foreigner.

Thanks a lot akash .By local police and MEA formalities,I wanted to ask if it is mandatory to inform the police before such a sales agreement or delivery?

 

[Akash1886]

Re: precautions to taken before buying a used car owned by a foreigner.

By local police and MEA formalities,I wanted to ask if it is mandatory to inform the police before such a sales agreement or delivery?

Not as such mandatory but it helps since it gives the peace of mind to the buyer and helps in knowing vehicle history. In Delhi, It is mandatory to verify details of a Pre-owned vehicle via Police.

Regards

Akash

 

[Tornado]

The car is out of station at present, till she comes back so that we can see her, my friend asked the owner to share the Registstion number and VIN so that we can check the history at ASS but the owner refused and insisted that he will reveal it at the time of agreement.

 

[incarnation]

sir if its from some website like quickr or olx beware as its a scam. its been proved already so dont fall prey to it.
if its by a person who is informed you about it. Inspect the car. make a note of the registration no and go the R.T.O and ask for something called B-extract form of the car it will cost you 18/- if you do it on your own if not a agent would charge you somewhere between 100-200/-.
In this form you will have the entire history of the car i.e. if its under hypothecation or any accidental case was registered on this vehicle or is it a R.C Renewed car ( meaning insurance scrapped vehicle purchased and done) so check for these.
also check with A.S.S. for service history.Also check for authentic signature of the vehicle owner. in the sense if you buy the car anybody can sign the forms you will come to know only when you give the papers for transfer that its not the original signature so don't pay the amount upfront.
give him the name and address of the purchaser and ask him to get a clearance certificate on the purchasers name only once you get it conclude the deal.
A C.C ( Clearance certificate) is issued only if the vehicle is getting transferred to a different R.T.O office that is if a person from Bangalore with R.T.O KA01 is selling the vehicle to other R.T.O in Bangalore like KA-02 or any other R.T.O. in the same state.
A CC is not required if you are transferring the vehicle in the jurisdiction of same R.T.O. one can directly transfer the papers. Insurance has to be changed within 14 days of Name change on the R.C. that is if the vehicle is transferred to your name on some date you have 14 days to transfer your insurance from that date of change of registration onto your name. avoiding this will void the insurance. you dont have to go to the police to find if there was a case filed on the vehicle you will get to know that in the B-extract form itself. hope this info helps. if you are taking the car to a entirely different state then you require an N.O.C and the original sale reciept from the showroom when the guy purchased the car this process is a lengthy procedure might take 6-7 months for the paperwork to get over.if you need more info let me know

 

[Akash1886]

my friend asked the owner to share the Registstion number and VIN so that we can check the history at ASS but the owner refused and insisted that he will reveal it at the time of agreement.

No problem, wait! You have nothing to loose as it is. Don't hurry up.

Regards

Akash

 

[Tornado]

The owner did not contacted us till now and whenever we contacted him the service provider says that his mobile service is discontinued.

 

[incarnation]

better stay away from this deal. thats the kind of Vibe I'm getting out of it. Rest you are the best judge.