Documents Required For Used Car Finance

[D.J.D.]

Hi friends,

I am in the process of selling my car. I talked to one interested buyer and he says he needs my cars RC book because he wants to apply for finance option. So i will have to hand over my RC book to him before selling my car. Is it ok? i am really afraid to hand over my RC book before getting the full payment. Please advise.

 

[anshuman8]

Re: Financing for used car

Hi friends,

I am in the process of selling my car. I talked to one interested buyer and he says he needs my cars RC book because he wants to apply for finance option. So i will have to hand over my RC book to him before selling my car. Is it ok? i am really afraid to hand over my RC book before getting the full payment. Please advise.

I have go through this. You can hand over a copy to him. But dont give him original RC Book.

 

[TheG2]

Re: Financing for used car

Give him the xerox to start the process. This is needed for loan application.
Once he has the loan approval letter, he needs to submit the original.
Take the approval letter (zerox) from him and the money minus the loan approved. Hand him the Original RC.

This should be the process followed and nothing else.

 

[zteg]

Re: Financing for used car

I am not sure how this works, but wont the bank need the original RC book for hypothecation?

Will they disperse the amount without hypothecation?

 

[D.J.D.]

Re: Financing for used car

@ anshuman, TheG2, zteg,

thank you for your immediate response. i will hand over the xerox copy.

 

[himalayan3009]

to refinance a 2nd hand car one need to submit:
R.C xerox copy along with insurance xerox copy with other supporting docs like KYC.
There is no need to submit original documents as the insurance has to be endorsed later in the name of buyer and RC too has to be transferred in the name of buyer to get the payment from bank/ NBFC.
But before transferring your car's document in the name of that person make sure to make an affidavit stating all the information regarding payment yet to be received etc etc.

 

[D.J.D.]

Hi himalayan
thank you for your reply. u said RC book has to be transferred in the buyers name to get the loan. that means before getting the payment i will have to transfer my car in to the buyers name. that is really risky i guess

 

[himalayan3009]

Thats what we do. ( i am into construction equipment finance division in a NBFC) we also refinance commercial vehicles. So i think the process will be same for cars also. and yes the payment will also be made in the name of the person who will be applying for the loan. If the car was financed earlier you also have to submit NOC from bank and loan account statement. (If bank demands) thats why i wrote about affidavit which is a legal document to bound the person to pay you all the amount after getting the payment.
First wait for the approval of the loan from the bank, which can be confirmed through xerox copy only.