Scam or not: Used car buyer asks RC & insurance copy for loan

I am not comfortable sharing the documents before the transfer of ownership.

BHPian tilt recently shared this with other enthusiasts.

A prospective buyer of my car wants me to give him a copy of the RC and Insurance. He says it is to enable him to get a loan from the bank.

I am not comfortable giving this to anyone before I receive the full payment for the car and before I transfer the ownership to the buyer.

Is this a scam? I am concerned that the RC and/or insurance could be misused to deprive me of my money and my car – say a scammer could use my RC to get a loan somewhere and keep the money, and then the lender comes after me for the car.

Is this a genuine requirement for buyers to buy a used car on loan?

What can I do to protect myself?

Thanks and cheers

Here’s what BHPian graaja had to say on the matter:

When I sold my Jetta, the buyer had also applied for a loan. The banker (some private lender) visited my place along with the buyer and inspected the car and RC before sanctioning the loan. I did not have to give them any copy.

Unless the loan is processed in your name and your signature is there in the papers I doubt if the bank will be able to confiscate your car. If the car is in your name and the loan is in the buyer’s name, then too, I think the bank cannot confiscate your car. So this can be a genuine request.

Here’s what BHPian gkveda had to say on the matter: