What Documents You Need When Buying Cars for Sale in Faisalabad

Buying a car in Faisalabad, like any other city in Pakistan, involves a series of important legal and administrative steps. To ensure a smooth and hassle-free transaction, both the buyer and seller must have the required documents in order. Whether you’re purchasing a new or used car, having the proper paperwork is crucial for ensuring that the car is legally transferred to you and that you are protected in case of any issues. Here’s a comprehensive guide to the documents you need when buying cars for sale in Faisalabad.

1. Documents for Buying a New Car in Faisalabad

When purchasing a new car from a dealership in Faisalabad, most of the paperwork is handled by the dealership. However, as a buyer, you will still need to provide some documents to finalize the transaction. Here are the key documents required:

a. National Identity Card (CNIC)

• You’ll need to present your original Computerized National Identity Card (CNIC), as well as a copy. This is the primary identification document for Pakistani citizens.

b. Proof of Residence

• A utility bill (e.g., electricity, gas, water) or a bank statement from the past 3 months is typically required to prove your residence address. This helps confirm that you are a permanent resident of Faisalabad.

c. Income Proof (If Financing)

• If you’re purchasing the car through financing (a car loan), you will need to submit documents that verify your income. This may include:
  • Salary slips for the past 3 to 6 months
  • Bank statements for the last 6 months
  • Tax returns (if applicable)

d. Down Payment

• If you’re buying through a loan, you will also need to pay a down payment, which is usually around 20% to 30% of the total price of the car.

e. Car Insurance

• While not always required upfront, insurance is an essential part of the process. Most dealerships will offer to arrange insurance for your new car, or you may choose to do it independently.

f. Sale Agreement/Invoice

• The sale agreement or invoice is generated by the dealership when you finalize the purchase. This document contains details of the car, such as make, model, engine number, VIN (Vehicle Identification Number), and the final sale price. Make sure to keep a copy of this agreement for future reference.

g. Registration Documents

• The dealership will handle the vehicle registration with the Excise and Taxation Department in Faisalabad. Once the registration is complete, you will be issued the Registration Book and Registration Plates. The registration book contains important details about the car and serves as proof of ownership.

h. Delivery Note

• When the dealership hands over the car to you, a delivery note is signed by both parties. This serves as confirmation that the car has been delivered and accepted by the buyer.

2. Documents for Buying a Used Car in Faisalabad

When buying a used car, the documentation process becomes a little more complicated, as you need to verify the ownership and condition of the car, as well as ensure that the transaction is legally binding. Here are the necessary documents:

a. Original CNIC of Buyer and Seller

• Both the buyer and seller must provide their Computerized National Identity Cards (CNICs). The seller will also need to provide a copy of their CNIC to facilitate the transfer of ownership.

b. Proof of Residence of the Buyer

• Similar to buying a new car, you will need to provide proof of your residence. A utility bill or bank statement showing your current address in Faisalabad is generally accepted.

c. Transfer of Ownership Documents

• The key document required for transferring ownership of a used car is the Transfer of Ownership Form. This form is available at the Excise and Taxation Department in Faisalabad and must be filled out and signed by both the buyer and the seller.
• The seller must submit the original Registration Book (also known as the Bahi Khata or Logbook) and ensure that the transfer of ownership is done at the Excise office.

d. Original Registration Book

• The Registration Book is proof that the car is officially registered with the Excise Department. It contains the car’s details, including the VIN (Vehicle Identification Number), engine number, and the owner’s name.

e. Proof of No Objection Certificate (NOC)

• If the car is financed or has an outstanding loan, the seller will need to provide a No Objection Certificate (NOC) from the bank or financial institution that holds the lien on the car. This document ensures that the car is free from any legal obligations or unpaid dues.

f. Car’s Previous Tax Payment Records

• The seller must present the tax payment records for the car. These records verify that all previous taxes, such as motor vehicle tax and token tax, have been paid up to date.

g. Vehicle Inspection Report

• A vehicle inspection report is a good idea for verifying the car’s condition. While this is not mandatory, getting the car inspected by an expert or an authorized service center can help you avoid any surprises after the purchase.

h. Sale Agreement

• A Sale Agreement should be signed between the buyer and seller. This document outlines the terms and conditions of the sale, including the agreed price, date of transfer, and condition of the car at the time of sale. Both parties should retain a copy of this agreement for reference.

i. Seller’s Undertaking

• The seller must provide an undertaking that the car is free from any criminal liabilities and has not been involved in any accident or theft.

j. Vehicle Delivery

• The seller should provide a signed vehicle delivery receipt at the time the car is handed over. This document acknowledges that the car has been delivered in its current condition.

3. Additional Considerations

• Vehicle History Check: If you’re purchasing a used car, it’s highly advisable to check the car’s history. This can include verifying its previous ownership, whether it has been involved in any accidents, and whether any outstanding fines or taxes are attached to the car.

• Negotiation: Ensure that both parties agree on the price before the transaction. If the price is agreed upon, make sure that the price is clearly mentioned in the sale agreement and invoice.

• Vehicle Registration Fees: The buyer is typically responsible for paying the vehicle registration fees at the Excise and Taxation Department in Faisalabad.

4. Conclusion

When buying a car in Faisalabad, whether new or used, it’s important to gather and verify all the required documents to ensure a smooth and legal transaction. Proper documentation not only protects you as a buyer but also ensures that the car is legally transferred to you without any complications. Always double-check the authenticity of the documents before proceeding with the purchase to avoid any legal issues down the road.