Legal Documents
Car
buyer should always try to keep all the legal documents in order such as registration
certificate (RC Book), insurance certificate, pollution under control (PUC) certificate
and service book.
Registration
Certificate
Make
sure there are no missing pages in the RC book. The document is registered in
your State and the State's name is mentioned in the registration paper. Information
with regard to engine number, manufacturing date, chassis number, etc are found
in the RC book. Always check the engine and chassis number of the vehicle.
Insurance Certificate
Make
sure whether the car has a third party insurance or a comprehensive insurance.
Check whether premium has been paid regularly. Don't forget to get the insurance
certificate in your name.
Road
Tax
Your
name must get registered in the road tax papers.
Service
Book
This
book gives you the full information with regard to the servicing the car
has undergone so far.
Informing
authorities
This
will help you know the illegal precedents, if any, involving the car. Submit all
details pertaining to the model of car, engine and chassis numbers, registration
number, the name and address of its previous owner.
Take
a hard look before you sign
Lots
of paper work does involves car financing. You can and should understand
the important steps in the process.
- You
should have the knowledge about the commercial terms like loan amount, installment
amount, installment due date, interest rate, loan duration, up front charges,
advance installment stand for.
- Also
try to understand the amortisation schedule -- conveying the break up of interest
and principal.
- Read
all the clause properly that may suggest that payment be made without any notice.
- You
should know very well the terms of prepayment premium and if partial prepayment
is possible.
- If
you have given a post dated cheques, you may have to undertake not to close the
account or refrain the financier from depositing your cheque.
- Make
sure about the details of hypothecation of the car to the financier.
- Look
for conditions with regard to the maintenance of the car, the insurance cover
and payment of all taxes.
- Look
at the clause explaining how any auto insurance claim money should be spent
in case the car is damaged in an accident.
- Take
a look you get to know all the conditions in the clause dealing with paying installments
irrespective of the condition of the vehicle.
- Carefully
read the power of attorney paper you require to sign in favour of the financier.
Also,
watch out for the following details before inking the deal
-
Pre-Closure Charges
- Hidden
costs
-
Installment Due Dates
-
Amortisation Schedule
Hidden
Costs:
Companies
may not highlight service charges, processing charges, documentation charges on
unsuspecting customers. This may increase the cost of the loan more than what
it appears on first look.
