Buying a car with open papers

andre candappa · March 5, 2021

Hi everyone

What are the risks on buying a vehicle with open papers? Also what is the procedure to transfer the vehicle to my name afterwards.This is going to be my first car so any feedback will be greatly appreciated

Cheers

iRage · March 6, 2021

1. It is illegal to use a car on open papers...pure and simple...there is no reason for anyone to genuinely use a car on open papers. IMO a person using/selling a car on open papers is either deceitful or stupid and is doing it to keep the number of owners on the registration book low just so that the market value does not drop (fyi...at the end of the day number of owners of a car has nothing to do with anything..what matters is the condition of the car then and there...knowing how cheap our car owning public is the more owners would imply higher risk of bad maintenance..but that can happen even with just one or two cheap owners)

2. You have no idea if the person selling the car is actually the owner of the car and if he/she is actually authorized or genuinely selling it. A majority of Sri Lankans are some of the most dishonest people on the planet (especially when it comes to cars). So you cannot trust it.

3. You have no idea who or how many past ownes the car has had and what it has been used for and who has done what for that...it might have gone through 50 owners for all you know been used as a get away car in major crimes.A majority of Sri Lankans are some of the most dishonest people on the planet (especially when it comes to cars). So you cannot trust it.

If you must buy a car that is on open papers...get the seller to first transfer it in to his name and then sell it to you (one day service for him and then transfer it to yourself after a grace period. This way any pending tax and other liabilities will fall on him before you take over the car. Also, if the car is found to be having any legal issues you can show that you legitimately bought the car and your liability would be limited. Due to operating limits thanks to covid this might not be possible anymore as I hear they are rather picky about one day transfers. Eitherway, it will take time.

Make sure all the documentation is legit...service records, revenue/luxury license payments, eco test reports, etc...A majority of Sri Lankans are some of the most dishonest people on the planet (especially when it comes to cars). So you cannot trust any of it...people even forge service records now.

matroska · March 9, 2021

On 3/6/2021 at 7:14 PM, iRage said:

If you must buy a car that is on open papers...get the seller to first transfer it in to his name and then sell it to you (one day service for him and then transfer it to yourself after a grace period. This way any pending tax and other liabilities will fall on him before you take over the car. Also, if the car is found to be having any legal issues you can show that you legitimately bought the car and your liability would be limited. Due to operating limits thanks to covid this might not be possible anymore as I hear they are rather picky about one day transfers. Eitherway, it will take time.

This is a slightly viable option - because right now it's almost impossible to buy a car from the original owner. 75% of car sellers AND buyers are the buying and selling type. There's just very few actual people who buy a car...and most of the cars are on open papers.

One more disadvantage in keeping the car on open papers after you buy is you by any chance lose the Revenue License. You can get the revenue license again if you're willing to pay - but they will not issue if you do not provide the NIC of the registered owner (copy will suffice for documentation but you need to present the original)

Quiet · March 10, 2021

One day transfer is not a hassle. I went two weeks back and got my long overdue transfer (With penalty of course). If you go with a prior appointment and if the documents are in order i handed over at 11.30 and collected sharp at 2.0.

Best would be to put a small lease (May be 10% of vehicle value.) So that the leasing company and the seller will be liable for any illegal stuff whilst all tax issues etc will also automatically get settled. There will be a stamp duty cost.

iRage · March 10, 2021

Pardon the rant but all this is because the car buying masses in Sri Lanka have gotten it in to their head that lower # of owners implies a better car...this is tied to the fact that the car owning masses in SL are cheap #@(*)$ who don't maintain their cars properly. The kingdon of King Kakille stands strong.

PreseaLover · March 10, 2021

Well, I had made like at least 25 calls to possible cars I wanted to buy over the past 3 months. Safe to say that at least 20 of them were on open papers. Nowaday's there is no end user of the car. A bigger buyya buys from a low level buyya and a way bigger buyya buys from that big buyya, so it goes on open papers from hand to hand. I know this for certain because I do a side spare parts business and everyday buyya's come to my house to buy stuff. They tell me themselves how its done. And the possibility of you buying a car from a registered owner is 0%, because if the car is good, a buyya goes and buy it within 1 hour of advertising, so once again its going to be on open papers that you buy a good car. If there is a car that hasnt been sold for 3 days and still with the registered owner, that means there is something wrong with the car or that car is highly priced no one sane would buy it. I know this because everyday I make calls to the advertised cars as I'm hunting one too. There is a car I know, a presea, a friend owned it in 2015. He sold it in 2016 and the car is still under his name. And I've seen that car being advertised by 5 different people over the years so its going on open papers and the mileage of it also has been reduced by 150k and the colour is also changed.

Quiet · March 11, 2021

If you look hard you will find vehicles without open papers. I bought the E200 from the original first owner who has refused to sell under open papers for a month.

Same goes with me. I sold all my cars with duly completed MTA 06 and copy sent to DMT. If they forge my signature that's a different story which i think is a common occurrence in all those open paper vehicles.

PreseaLover · March 11, 2021

2 hours ago, Quiet said:

If you look hard you will find vehicles without open papers. I bought the E200 from the original first owner who has refused to sell under open papers for a month.

Same goes with me. I sold all my cars with duly completed MTA 06 and copy sent to DMT. If they forge my signature that's a different story which i think is a common occurrence in all those open paper vehicles.

yes usually buyya's dont buy europian vehicles and cars that are not common. So those remain with original owners.