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We normally deal with people we know and in person, especially if it is a monetary transaction. What happens if you have to buy or sell a car to a person you met on the Internet or through a newspaper classified ad in a popular newspaper? There cannot be a foolproof way of avoiding a scam but using CarWale’s fraud awareness tips for used car buyers and sellers coupled with your common sense, you can save yourself from fraud.
1. Inspect the car
Inspect the car to your satisfaction in broad daylight. Look for signs of any kind of accident or damage due to flooding. Take a test drive to ensure that the engine is in good shape. If you are not sure, take your mechanic or a reputed one along.
2. Check car documents
Check the car documents carefully. Ask for car registration copy (RC book/card), insurance papers etc. Verify the basic car details such as number of owners, car variant, manufacturing year, owner detail etc. with the RC and what was advertised or told to you.
Ask for previous maintenance related papers (whatever the seller has). The maintenance papers will carry more value if these are from an authorised service center. Maintenance records are a good way to verify the mileage (kilometers driven) of the car.
3. Meet the seller
The seller is the most important factor in the entire car buying scenario. You could potentially let go a couple of minor glitches as far as car is concerned but even the slightest about the seller should be alarming enough not to go through with the deal. Have a detailed casual discussion with the seller regarding his employment etc. The conclusion will be based upon your judgment.
4. Know when to transfer the money
Do not transfer the money until you have seen the car in person and met the seller. No money should be paid for having a look at the car. Walk away from the deal if the seller asks you to transfer a token amount before you can see the car. Become extremely cautious if the price of the car sounds too good to be true. Check CarWale used car prices for a fair idea of the market value of the car.
1. Meet the buyer
Meet the buyer in person. Keep a proof of identity copy for your records before you hand over the car. Refuse to sell the car if you get skeptical about the buyer for any reason.
2. Know how to deal with the money
You may enter the deal by taking some token money. The car can be handed over to the buyer if you have been given a cheque/DD of the amount as per the agreed sale price but the transfer documents should be signed only after the entire payment has been realised.
If buyer gives you a cheque/DD of an amount higher than the agreed sale price and asks you to return the difference, don’t do so. Let’s assume that the agreed sale price of your car is Rs.5,20,000 and the buyer gives you a cheque of Rs.5,50,000 and asks you to return Rs.30,000. In this case, don’t get into the deal.
3.When to transfer the car title
Don’t hand over the original car documents until you have got all your money. At the time of delivery, have a delivery note signed by the buyer that clearly states that he has taken the possession of the said car and he is responsible for the liabilities arising henceforth.
The car transfer should take place once the complete payment is realised. You can sign the transfer documents and hand over all original documents, duplicate car key etc. to the buyer.
