Risks Of Buying An Open Paper Car. What To Do

[kaushama]

I am going to buy a nice car as the second car. Only problem is the guy is probably selling it on open papers. I had a nasty experience before as well and just escaped. I have never done it before too.

What should I do? Any precautions?

Edited September 9, 2010 by kaushama

[SeanD]

When doing a search, I found a post by you yourself that says "never buy on open papers" (http://forum.autolanka.com/index.php?s...st&p=122584) I think it's advisable to stick by your past experiences. In any case, I thought I read somewhere on this site that open papers are no longer allowed in Sri Lanka?

Few other sample topics for buyers and sellers:

http://forum.autolanka.com/index.php?showtopic=5222

http://forum.autolanka.com/index.php?showtopic=7787

Moral of the story, never buy on open papers.

Edited September 9, 2010 by SeanD

[kaushama]

Yeah that was a nasty one. I wouldn't have even thought about this if I didn't have that experience. But this car is really nice. Most of the cars I saw recently for the second car have been open paper ones. Ohhhhh This sucks!

[seeker]

In any case, I thought I read somewhere on this site that open papers are no longer allowed in Sri Lanka?

For the record, open papers were never allowed legally, in the first place!

[kaushama]

The guy is prepared to transfer the car on his name and sell. How about that? The order of ownership changes. Now it is on F/O's name. I don't care about the order of the ownership though. Any risk?

[Sifaan]

The guy is prepared to transfer the car on his name and sell. How about that? The order of ownership changes. Now it is on F/O's name. I don't care about the order of the ownership though. Any risk?

I don't understand how this would help at all. All it would do is increase the number of owners as per the "book".

AFAIK it's a big risk to sell on open papers (like one of those linked stories, my former boss had to go to courts because a company bike had been sold on open papers and used for a crime) but there is no disadvantage to buy on open papers.

and I think there is nothing inherently wrong with buying a car that is running on open papers, except you need to see why it did not have the ownership transferred (which would be the normal thing to do if the seller had bought it for his own use). there may be certain reasons, e.g. that it was a permit vehicle (so no transfers for 5 years) that has been sold (together with some affidavit or other supporting document). I guess a lot of car sale people would buy cars on open papers and there shouldn't be a problem buying such a car (of course you would still need to check the things you would check when buying any used car)

my boss was using a car for a year on open papers because he didn't want the resale value to drop when he sold it (for the fault of having had an extra owner)

on the other hand sometimes open papers may mean you are buying from a dealer who is pretending to be the owner of the car, and that would mean you probably can't believe anything he says about the car (how the car had been used, fuel economy, etc.)

[scds]

A friend of mine nearly brought a car recently with open papers. Because the seller was acting a bit strangely and rushing in to the sale, my friend got suspicious and got the papers checked in the RMV, to see that that the last registered owner had raised strong objections to the ownership of the car. Fortunately he managed to get the advance back

[kaushama]

on the other hand sometimes open papers may mean you are buying from a dealer who is pretending to be the owner of the car, and that would mean you probably can't believe anything he says about the car (how the car had been used, fuel economy, etc.)

This is probably the case here. The seller says the car is his father in law's. However, I said I want to meet and get the signature, he is all reluctant. So it is sure that he is lying and selling an open paper vehicle. What I was skeptical about is that he is telling a lie here.

Is there a way that one could do a check on vehicle in RMV officially?

[xXx]

I don't understand how this would help at all. All it would do is increase the number of owners as per the "book".

AFAIK it's a big risk to sell on open papers (like one of those linked stories, my former boss had to go to courts because a company bike had been sold on open papers and used for a crime) but there is no disadvantage to buy on open papers.

and I think there is nothing inherently wrong with buying a car that is running on open papers, except you need to see why it did not have the ownership transferred (which would be the normal thing to do if the seller had bought it for his own use). there may be certain reasons, e.g. that it was a permit vehicle (so no transfers for 5 years) that has been sold (together with some affidavit or other supporting document). I guess a lot of car sale people would buy cars on open papers and there shouldn't be a problem buying such a car (of course you would still need to check the things you would check when buying any used car)

my boss was using a car for a year on open papers because he didn't want the resale value to drop when he sold it (for the fault of having had an extra owner)

on the other hand sometimes open papers may mean you are buying from a dealer who is pretending to be the owner of the car, and that would mean you probably can't believe anything he says about the car (how the car had been used, fuel economy, etc.)

Very nicely summed up Siffan.

[kaushama]

So if I can check the car in RMV, buying this would be safe?

[Sifaan]

So if I can check the car in RMV, buying this would be safe?

well, if we give the seller the benefit of the doubt maybe the FIL did sell it to him, and on open papers to help preserve the resale value, and maybe subsequently there was a family fight and he's not on good terms with FIL anymore... in this case checking with RMV may put your mind at ease.

on the other hand, maybe the guy bought it for his own use, but discovered some major fault before he registered it, and is now trying to sell it quickly before the problem becomes apparent. so, open papers or not, get the car checked out fully.

[Sieko]

In this case;

Check the RMV,

Check the Vehicle - Mechanical, Body, Eng No, Chassis no.,etc;...

Try to meet the regstd owner and get the consent of him...(If possible)

Then buy it and get it transferred to your name....