Buying a new car is a major milestone, whether it’s your first vehicle or an upgrade to something better. But before that, you must know about the essential documents to buy a new car in India.
While the excitement of choosing the perfect model and color often steals the spotlight, it’s equally important to get your paperwork in order. Proper documentation ensures that your purchase process goes smoothly and that you meet all legal and regulatory requirements.
To get the complete details regarding this subject, make sure to stick to this article to the end.
What Are The Essential Documents To Buy A New Car In India?
To buy a new car in India, both the buyer and the dealer must handle specific documentation. Here’s a comprehensive list of the 8 essential documents you’ll need when buying a new car in India:
1. Proof of Identity (POI)
Car dealerships and financing institutions require valid identity proof before proceeding with the sale or registration. This document verifies your identity and is crucial for all legal records. Acceptable POI documents include Aadhaar Card, PAN Card, Voter ID, Passport, and Driving License.
Tip: Ensure the name on your identity proof matches the name used in all other documents, including loan applications and insurance forms.
2. Proof of Address (POA)
Address proof is required to register your vehicle at the appropriate Regional Transport Office (RTO) and to determine the correct road tax amount based on your location.
Common POA documents:
- Aadhaar Card
- Electricity or Water Bill (latest)
- Rent Agreement (with utility bill)
- Passport
- Voter ID
- Bank Passbook
Some RTOs may ask for two address proofs, so it’s good to carry a couple of valid options.
3. Photographs (Passport Size)
While often overlooked, passport-sized photographs are mandatory for registration, loan applications, and insurance paperwork. It’s advisable to carry at least 4 to 6 recent photos when visiting the dealership or RTO.
Why it matters: These are often used for affixing to application forms, especially for loan or insurance documents.
4. PAN Card
As per Indian regulations, furnishing a PAN card is essential if the car purchase exceeds ₹2 lakh. It helps in tracking high-value transactions and is a mandatory requirement for processing payments, loans, and issuing Form 60 (in case PAN is unavailable). In case you don’t have a PAN card, submit Form 60 (a declaration for individuals without a PAN). However, it is strongly recommended to have a valid PAN card to avoid future tax issues.
5. Bank Statements / Salary Slips (For Loan Buyers)
If you’re opting for car finance, the lender will require proof of income to assess your repayment capacity.
Documents required:
- Last 3–6 months’ salary slips (for salaried individuals)
- Bank statements for the same period
- Form 16 or Income Tax Returns (ITRs)
- Proof of employment or business registration (for self-employed individuals)
This documentation is used to evaluate your loan eligibility, EMI calculation, and loan tenure.
6. Car Insurance Papers
Insurance is mandatory under the Indian Motor Vehicles law. When buying a new car, you must obtain at least third-party insurance before the vehicle is registered and delivered.
Types of car insurance:
- Third-party Insurance: Mandatory, covers damage to other vehicles or individuals.
- Comprehensive Insurance: Covers third-party liability and damages to your own vehicle.
If you’re buying through the dealership, they will often include insurance in the on-road price and process it for you. Alternatively, you can choose a separate insurer if you prefer.
7. Form 20, 21, and 22 (RTO Registration Forms)
These are vital documents for registering your car with the local RTO. Though the dealership typically manages this paperwork, understanding their purpose is helpful.
- Form 20: Application for vehicle registration
- Form 21: Sale certificate issued by the dealer
- Form 22: Roadworthiness certificate from the manufacturer
Ensure you receive copies of these from the dealer and verify all details are correctly filled in.
8. Temporary Registration Certificate (TRC)
Before your vehicle gets a permanent registration number, it is issued a Temporary Registration Certificate (TRC). This is valid for up to 1 month and allows you to use the car legally until the permanent registration is completed.
Why it’s important:
- Required to legally drive the new vehicle right after purchase
- Needed for insurance activation
- Helps in claiming any delivery-related complaints with proof of date
Once the permanent registration number is issued by the RTO, your TRC becomes obsolete.
Bonus Tip: Fastag Activation
While not technically a document, FASTag is now mandatory for all four-wheelers in India for passing through toll plazas. Most new cars come with pre-installed Fastags, but you need to:
- Activate it by linking it to your bank account or a FASTag wallet
- Ensure your KYC details are updated
Final Thoughts
The process of buying a new car involves more than just picking the right model. Ensuring that all documents are in order helps avoid last-minute delays, legal issues, or complications with insurance and financing. Many dealerships now offer end-to-end support, including document processing, but staying informed ensures you’re not caught off guard. Having these ready before stepping into a dealership will make your car-buying journey smoother and more enjoyable.
FAQ
Q. What documents are required to buy a new car in India?
A. You’ll need identity proof, address proof, PAN card, income proof (if taking a loan), passport-size photos, Form 20, Form 21, and Form 22.
Q. Why is a PAN card necessary for car purchase?
A. A PAN is required for financial transactions above ₹50,000 and vehicle registration.
Q. Are address and ID proofs mandatory?
A. Yes, address and ID proofs are mandatory as they verify your identity and residence for registration and loan approval.
Q. What is Form 21?
A. Form 21 is the sales certificate issued by the dealer.
Q. What is Form 22?
A. Form 22 certifies the vehicle’s compliance with pollution and safety norms.