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.

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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

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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.