Buying a Used Car in Pakistan requires more than checking the vehicle’s condition. Buyers must verify important documents to avoid ownership disputes, unpaid dues, and legal problems. Buyers get into ownership disputes, unpaid dues, or even worse because they bypassed verification of documents. Here’s what to look for.
Buying a Used Car: Check Registration Book or Smart Card
Avoid turning to a picture or WhatsApp copy during the negotiations. Request the original registration document (Registration book/smartcard).
Check all aspects against the actual vehicle, including registration number, owner name, make, model, chassis number, engine number, and engine capacity. Any discrepancy in any of these is important.
Match the Seller to the Registered Owner
Possession/absence of keys or a signed transfer does not constitute proof of ownership. When the individual not listed on the registration record is selling the vehicle, ask directly why.
Verify the identity of the registered owner, their reasons for handling the sale, and if the registered owner will personally do the biometric transfer. When they aren’t there, the transfer can become very complex.
Token Tax Clearance
You may have to wait to receive your car, which will cause unnecessary expenses due to unpaid token tax. The token is the tax status, and this should not be done after the payment is completed.
Transfer Letter or Sale Deed
Transfer papers are vital documents needed for transfer to the Excise office and need to be a signed transfer letter or stamp paper sale deed with model, engine & chassis numbers, sale price, and signatures of both seller and buyer.
CNIC Copies of Both Parties
You will be required to have a copy of the Buyer’s CNIC and the Seller’s CNIC. Although these will be verified at the Excise office, again ensure that they match the name on the registration record.
Bank NOC If the Car Was Financed
If the vehicle has been financed, an NOC from the finance company must be presented prior to vehicle transfer. If you do not do this, the car may still be seized by the bank to collect any money you owe on the financing.
Buying a Used Car: Why Duplicate Documents Need Caution
The duplication of a registration document is not necessarily a red flag. Registration books are sometimes lost. You have to know why the original was lost, however, and ensure it was released officially from the appropriate source.
Complete Biometric Verification
In most provinces, the seller should be verified through NADRA by biometrics only. You’re not entitled to pay the full amount until this step has been taken. If your biometrics fail because of a fingerprint or NADRA record problem, you are in a weak position when a solution is sought after payment.
Conclusion
Buying a Used Car safely requires patience and proper document verification before completing the payment. Check the registration document with the vehicle, check the registered owner with the seller, and clear token tax. Also, do the biometric check before exchanging any money. These checks will take additional time, but this is what keeps you from falling into traps.
