How to Check a Car's Documents, Auction Sheet and Token Tax Before You Buy

A car can look perfect and still be a bad buy if its papers are not in order. Problems with ownership, unpaid taxes or a doctored auction sheet can cost you money, time and in the worst case the car itself. Here is how to check the paperwork properly before you pay.

The registration book or smart card

The registration document is the most important paper. Depending on where and when the car was registered, it may be a paper book or a smart card.

Check that:

• The owner's name matches the seller's CNIC. If the seller is not the registered owner, ask why, and be careful with "open letter" sales where the car has changed hands several times without a transfer.
• The chassis number and engine number on the document match the numbers on the car. The chassis number is usually stamped on the body (often in the engine bay or under a seat or floor mat) and also appears on a plate. Compare every character.
• The registration number matches the number plates.
• The vehicle details, such as make, model, colour and engine capacity, match the car in front of you. A colour mismatch can mean a full repaint that was never recorded.

If anything does not match, stop and get it explained before going further.

Verify online with the excise department

Most provincial excise and taxation departments offer an online or SMS service to check a vehicle's registration details using its registration number. Use the official service for the province where the car is registered and compare the result with the documents. If the online record shows a different owner, model or status, treat that as a serious warning.

Token tax

Token tax is an annual tax on registered vehicles, collected by the provincial excise department. Before buying:

• Ask to see the receipts or the stamped record of payment.
• Check the payment status through the official online service where available.
• Agree in writing who will clear any unpaid amount before the transfer.

Unpaid tax usually has to be cleared before ownership can be transferred, so it is better to know about it upfront.

Traffic challans

Unpaid traffic fines can stay attached to the vehicle. Many cities, especially those with safe city camera systems, let you check outstanding e-challans online using the registration number. Check before you buy, and make clearing them part of the deal.

Auction sheets for imported cars

Many used cars in Pakistan are imported from Japan. Japanese auction houses inspect each car and record its condition on an auction sheet. A genuine sheet tells you a lot:

• Overall grade and separate grades for interior and exterior.
• Mileage at the time of auction, which helps you spot a rolled back odometer.
• A body diagram with letter and number codes marking scratches, dents, repairs and rust.
• Notes from the inspector about anything significant.

How to spot a suspicious auction sheet

• The sheet is only a printout or photocopy with no way to verify it.
• The mileage on the sheet is higher than what the odometer shows now.
• Damage marked on the sheet has been "fixed" in a way that does not match the car, or the sheet shows no damage while the car clearly has repairs.
• The grade seems too good for the car's visible condition.

Ask for the auction sheet to be verified through a reputable verification service using the chassis number. The small cost is worth it on any imported car.

Import and customs papers

For imported vehicles, the import documents and customs clearance papers should be available and should list the same chassis number. A car that cannot be linked to proper import papers can create problems at the time of registration or transfer.

Other documents worth asking for

• Original purchase invoice from the dealer, for locally assembled cars.
• Service records from an authorised workshop or a regular mechanic.
• CNG papers, if a CNG kit is fitted.
• Bank clearance letter, if the car was bought on lease or a car loan. Without it, the bank may still have a claim on the car.

Red flags that should make you walk away

• The seller refuses to show original documents.
• Numbers on the car have been scratched, welded or look re-stamped.
• The car is on an open letter that has passed through many hands.
• The price is far below the market without a clear reason.
• You are pressured to pay a deposit before verifying anything.

A simple order of checks

1. See the original registration and the seller's CNIC.
2. Match chassis and engine numbers on the car.
3. Check the registration details, token tax and challans online.
4. Verify the auction sheet for imported cars.
5. Ask for bank clearance if the car was financed.
6. Write a sale agreement and complete the transfer promptly.

Paperwork checks take an hour or two. Fixing a paperwork problem after you have paid can take months.

Image: AI-generated illustration.